News Releases
Revenues for the first quarter of fiscal 2015 were
Revenues for the combined
Commentary & Outlook
“We are very pleased with our financial performance, highlighted by
first quarter net revenue growth of 2.2% in a challenging retail
environment,” said
“The acquisition of
Mr. Mannelly continued, “With one quarter of results under our belt, we
believe the Company is on track to meet the outlook previously provided.
For the full fiscal year, we are reconfirming our revenue growth
projection to be in the range of 15% to 18%. In addition, we expect
fiscal 2015 adjusted earnings per share in the range of
Free Cash Flow & Debt
The Company's record free cash flow for the quarter ended
The Company's net debt at
The Company also announced that it will initiate financing on
Q1 Conference Call & Accompanying Slide Presentation
The Company will host a conference call to review its first quarter
results on
Non-GAAP Financial Information
In addition to financial results reported in accordance with generally accepted accounting principles (GAAP), we have provided certain non-GAAP financial information in this release to aid investors in understanding the Company's performance. Each non-GAAP financial measure is defined and reconciled to its most closely related GAAP financial measure in the “About Non-GAAP Financial Measures” section at the end of this earnings release.
About
The Company markets and distributes brand name over-the-counter and
household cleaning products throughout the U.S.,
Note Regarding Forward-Looking Statements
This news release contains "forward-looking statements" within the
meaning of the federal securities laws 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
"outlook," "goals," "projection," "may," "will," "would," "expect," or
"believe”, (or the negative or other derivatives of each of these terms)
or similar terminology. The "forward-looking statements" include,
without limitation, statements regarding the integration of the
Hydralyte brand into
Prestige Brands Holdings, Inc. | ||||||||||||||||||||
Consolidated Statements of Income and Comprehensive Income | ||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
Three Months Ended June 30, | ||||||||||||||||||||
(In thousands, except per share data) |
2014 | 2013 | ||||||||||||||||||
Revenues | ||||||||||||||||||||
Net sales | $ | 144,541 | $ | 141,642 | ||||||||||||||||
Other revenues | 1,161 | 870 | ||||||||||||||||||
Total revenues | 145,702 | 142,512 | ||||||||||||||||||
Cost of Sales | ||||||||||||||||||||
Cost of sales (exclusive of depreciation shown below) | 63,836 | 59,488 | ||||||||||||||||||
Gross profit | 81,866 | 83,024 | ||||||||||||||||||
Operating Expenses | ||||||||||||||||||||
Advertising and promotion | 19,096 | 18,681 | ||||||||||||||||||
General and administrative | 17,006 | 11,634 | ||||||||||||||||||
Depreciation and amortization | 2,961 | 3,268 | ||||||||||||||||||
Total operating expenses | 39,063 | 33,583 | ||||||||||||||||||
Operating income | 42,803 | 49,441 | ||||||||||||||||||
Other (income) expense | ||||||||||||||||||||
Interest income | (32 |
) |
|
(3 | ) | |||||||||||||||
Interest expense | 14,685 | 15,908 | ||||||||||||||||||
Total other expense | 14,653 | 15,905 | ||||||||||||||||||
Income before income taxes | 28,150 | 33,536 | ||||||||||||||||||
Provision for income taxes | 11,418 | 12,844 | ||||||||||||||||||
Net income | $ | 16,732 | $ | 20,692 | ||||||||||||||||
Earnings per share: | ||||||||||||||||||||
Basic | $ | 0.32 | $ | 0.40 | ||||||||||||||||
Diluted | $ | 0.32 | $ | 0.40 | ||||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||
Basic | 51,956 | 51,222 | ||||||||||||||||||
Diluted | 52,533 | 52,040 | ||||||||||||||||||
Comprehensive income, net of tax: | ||||||||||||||||||||
Currency translation adjustments | $ | 2,726 | $ | 1 | ||||||||||||||||
Total other comprehensive income | 2,726 | 1 | ||||||||||||||||||
Comprehensive income | $ | 19,458 | $ | 20,693 | ||||||||||||||||
Prestige Brands Holdings, Inc. | ||||||||||||||||||||
Consolidated Balance Sheets | ||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
(In thousands) |
June 30, | March 31, | ||||||||||||||||||
Assets | 2014 | 2014 | ||||||||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 15,675 | $ | 28,331 | ||||||||||||||||
Accounts receivable, net | 58,238 | 65,050 | ||||||||||||||||||
Inventories | 66,171 | 65,586 | ||||||||||||||||||
Deferred income tax assets | 6,118 | 6,544 | ||||||||||||||||||
Prepaid expenses and other current assets | 13,895 | 11,674 | ||||||||||||||||||
Total current assets | 160,097 | 177,185 | ||||||||||||||||||
Property and equipment, net | 10,673 | 9,597 | ||||||||||||||||||
Goodwill | 192,632 | 190,911 | ||||||||||||||||||
Intangible assets, net | 1,468,172 | 1,394,817 | ||||||||||||||||||
Other long-term assets | 22,376 | 23,153 | ||||||||||||||||||
Total Assets | $ | 1,853,950 | $ | 1,795,663 | ||||||||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||||
Current liabilities | ||||||||||||||||||||
Accounts payable | $ | 45,279 | $ | 48,286 | ||||||||||||||||
Accrued interest payable | 9,449 | 9,626 | ||||||||||||||||||
Other accrued liabilities | 23,591 | 26,446 | ||||||||||||||||||
Total current liabilities | 78,319 | 84,358 | ||||||||||||||||||
Long-term debt | ||||||||||||||||||||
Principal amount | 972,500 | 937,500 | ||||||||||||||||||
Less unamortized discount | (2,942 | ) | (3,086 | ) | ||||||||||||||||
Long-term debt, net of unamortized discount | 969,558 | 934,414 | ||||||||||||||||||
Deferred income tax liabilities | 219,908 | 213,204 | ||||||||||||||||||
Other long-term liabilities | 358 | 327 | ||||||||||||||||||
Total Liabilities | 1,268,143 | 1,232,303 | ||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||
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 - 52,209 shares at June 30, 2014 and 52,021 shares at March 31, 2014 | 522 | 520 | ||||||||||||||||||
Additional paid-in capital | 418,488 | 414,387 | ||||||||||||||||||
Treasury stock, at cost - 240 shares at June 30, 2014 and 206 shares at March 31, 2014 | (2,545 | ) | (1,431 | ) | ||||||||||||||||
Accumulated other comprehensive loss, net of tax | 3,465 | 739 | ||||||||||||||||||
Retained earnings | 165,877 | 149,145 | ||||||||||||||||||
Total Stockholders' Equity | 585,807 | 563,360 | ||||||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 1,853,950 | $ | 1,795,663 | ||||||||||||||||
Prestige Brands Holdings, Inc. | ||||||||||||||||||||
Consolidated Statements of Cash Flows | ||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
Three Months Ended June 30, | ||||||||||||||||||||
(In thousands) |
2014 | 2013 | ||||||||||||||||||
Operating Activities | ||||||||||||||||||||
Net income | $ | 16,732 | $ | 20,692 | ||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
Depreciation and amortization | 2,961 | 3,268 | ||||||||||||||||||
Deferred income taxes | 7,140 | 6,797 | ||||||||||||||||||
Amortization of deferred financing costs | 851 | 892 | ||||||||||||||||||
Stock-based compensation costs | 1,858 | 1,193 | ||||||||||||||||||
Amortization of debt discount | 144 | 345 | ||||||||||||||||||
(Gain) on sale or disposal of equipment | — | (2 | ) | |||||||||||||||||
Changes in operating assets and liabilities, net of effects of acquisitions | ||||||||||||||||||||
Accounts receivable | 6,956 | 11,070 | ||||||||||||||||||
Inventories | 1,540 | (6,716 | ) | |||||||||||||||||
Prepaid expenses and other current assets | (2,203 | ) | 187 | |||||||||||||||||
Accounts payable | (3,096 | ) | (9,147 | ) | ||||||||||||||||
Accrued liabilities | (3,212 | ) | (5,781 | ) | ||||||||||||||||
Net cash provided by operating activities | 29,671 | 22,798 | ||||||||||||||||||
Investing Activities | ||||||||||||||||||||
Purchases of property and equipment | (496 | ) | (1,364 | ) | ||||||||||||||||
Proceeds from sale of property and equipment | — | 2 | ||||||||||||||||||
Acquisition of the Hydralyte brand | (77,991 | ) | — | |||||||||||||||||
Net cash used in investing activities | (78,487 | ) | (1,362 | ) | ||||||||||||||||
Financing Activities | ||||||||||||||||||||
Repayments under revolving credit agreement | (30,000 | ) | (18,000 | ) | ||||||||||||||||
Borrowings under revolving credit agreement | 65,000 | — | ||||||||||||||||||
Payment of deferred financing costs | (74 | ) | (280 | ) | ||||||||||||||||
Proceeds from exercise of stock options | 1,294 | 309 | ||||||||||||||||||
Proceeds from restricted stock exercises | 57 | — | ||||||||||||||||||
Excess tax benefits from share-based awards | 950 | 452 | ||||||||||||||||||
Fair value of shares surrendered as payment of tax withholding | (1,171 | ) | (278 | ) | ||||||||||||||||
Net cash provided by (used in) financing activities | 36,056 | (17,797 | ) | |||||||||||||||||
Effects of exchange rate changes on cash and cash equivalents | 104 | (3 | ) | |||||||||||||||||
(Decrease) increase in cash and cash equivalents | (12,656 | ) | 3,636 | |||||||||||||||||
Cash and cash equivalents - beginning of period | 28,331 | 15,670 | ||||||||||||||||||
Cash and cash equivalents - end of period | $ | 15,675 | $ | 19,306 | ||||||||||||||||
Interest paid | $ | 13,867 | $ | 14,826 | ||||||||||||||||
Income taxes paid | $ | 707 | $ | 657 | ||||||||||||||||
Prestige Brands Holdings, Inc. | ||||||||||||||||||||||||||||||||||||
Consolidated Statements of Income | ||||||||||||||||||||||||||||||||||||
Business Segments | ||||||||||||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||||||||||||||||||||
(In thousands) |
North |
International |
Household |
Consolidated | ||||||||||||||||||||||||||||||||
Gross segment revenues | $ | 110,973 | $ | 13,692 | $ | 20,593 | $ | 145,258 | ||||||||||||||||||||||||||||
Elimination of intersegment revenues | (717 | ) | — | — | (717 | ) | ||||||||||||||||||||||||||||||
Third-party segment revenues | 110,256 | 13,692 | 20,593 | 144,541 | ||||||||||||||||||||||||||||||||
Other revenues | 177 | 35 | 949 | 1,161 | ||||||||||||||||||||||||||||||||
Total revenues | 110,433 | 13,727 | 21,542 | 145,702 | ||||||||||||||||||||||||||||||||
Cost of sales | 42,340 | 5,078 | 16,418 | 63,836 | ||||||||||||||||||||||||||||||||
Gross profit | 68,093 | 8,649 | 5,124 | 81,866 | ||||||||||||||||||||||||||||||||
Advertising and promotion | 16,353 | 2,339 | 404 | 19,096 | ||||||||||||||||||||||||||||||||
Contribution margin | $ | 51,740 | $ | 6,310 | $ | 4,720 | 62,770 | |||||||||||||||||||||||||||||
Other operating expenses | 19,967 | |||||||||||||||||||||||||||||||||||
Operating income | 42,803 | |||||||||||||||||||||||||||||||||||
Other expense | 14,653 | |||||||||||||||||||||||||||||||||||
Income before income taxes | 28,150 | |||||||||||||||||||||||||||||||||||
Provision for income taxes | 11,418 | |||||||||||||||||||||||||||||||||||
Net income | $ | 16,732 | ||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2013 | |||||||||||||||||||||||||||||||||||
(In thousands) |
North |
International |
Household |
Consolidated | |||||||||||||||||||||||||||||||
Gross segment revenues | $ | 118,936 | $ | 3,414 | $ | 19,292 | $ | 141,642 | |||||||||||||||||||||||||||
Elimination of intersegment revenues | — | — | — | — | |||||||||||||||||||||||||||||||
Third-party segment revenues | 118,936 | 3,414 | 19,292 | 141,642 | |||||||||||||||||||||||||||||||
Other revenues | 150 | 7 | 713 | 870 | |||||||||||||||||||||||||||||||
Total revenues | 119,086 | 3,421 | 20,005 | 142,512 | |||||||||||||||||||||||||||||||
Cost of sales | 43,546 | 1,465 | 14,477 | 59,488 | |||||||||||||||||||||||||||||||
Gross profit | 75,540 | 1,956 | 5,528 | 83,024 | |||||||||||||||||||||||||||||||
Advertising and promotion | 17,551 | 263 | 867 | 18,681 | |||||||||||||||||||||||||||||||
Contribution margin | $ | 57,989 | $ | 1,693 | $ | 4,661 | 64,343 | ||||||||||||||||||||||||||||
Other operating expenses | 14,902 | ||||||||||||||||||||||||||||||||||
Operating income | 49,441 | ||||||||||||||||||||||||||||||||||
Other expense | 15,905 | ||||||||||||||||||||||||||||||||||
Income before income taxes | 33,536 | ||||||||||||||||||||||||||||||||||
Provision for income taxes | 12,844 | ||||||||||||||||||||||||||||||||||
Net income | $ | 20,692 | |||||||||||||||||||||||||||||||||
About Non-GAAP Financial Measures
We define Non-GAAP Total Revenues excluding acquisitions and divestitures as Total Revenues excluding revenues associated with products acquired or divested in the periods presented. We define Non-GAAP EBITDA as earnings before interest expense (income), income taxes, depreciation and amortization and Non-GAAP Adjusted EBITDA as earnings before interest expense (income), income taxes, depreciation and amortization, certain other legal and professional fees, and other acquisition-related costs. We define Non-GAAP Adjusted Gross Margin as Gross Profit before inventory step up charges and certain other acquisition and integration-related costs. We define Non-GAAP Adjusted Operating Income as Operating Income minus certain other legal and professional fees, acquisition and other integration costs. We define Non-GAAP Adjusted Net Income as Net Income before inventory step-up charges, certain other legal and professional fees, other acquisition and integration-related costs, the applicable tax impacts associated with these items and the tax impacts of state tax rate adjustments and other non-deductible items. Non-GAAP Adjusted EPS is calculated based on Non-GAAP Adjusted Net Income, divided by the weighted average number of common and potential common shares outstanding during the period. We define Non-GAAP Free Cash Flow as Net Cash provided by operating activities less cash paid for capital expenditures. Non-GAAP Free Cash Flow per Share is calculated based on Non-GAAP Free Cash Flow, divided by the weighted average number of common and potential common shares outstanding during the period. We define Non-GAAP Contribution Margin as Gross Profit less advertising and promotional expenses. Non-GAAP Total Revenues excluding acquisitions and divestitures, Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP Contribution Margin, Non-GAAP Adjusted Operating Income, Non-GAAP Adjusted Net Income, Non-GAAP Adjusted EPS, Non-GAAP Free Cash Flow and Non-GAAP Free Cash Flow per Share may not be comparable to similarly titled measures reported by other companies.
We are presenting Non-GAAP Total Revenues excluding acquisitions and divestitures, Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted Gross Margin, Non-GAAP Contribution Margin, Non-GAAP Adjusted Operating Income, Non-GAAP Adjusted Net Income, Non-GAAP Adjusted EPS, Non-GAAP Free Cash Flow and Non-GAAP Free Cash Flow per Share because they provide additional ways to view our operations, when considered with both our GAAP results and the reconciliation to net income and net cash provided by operating activities, respectively, which we believe provide a more complete understanding of our business than could be obtained absent this disclosure. Each of Non-GAAP Total Revenues excluding acquisitions and divestitures, Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted Gross Margin, Non-GAAP Contribution Margin, Non-GAAP Adjusted Operating Income, Non-GAAP Adjusted Net Income, Non-GAAP Adjusted EPS, Non-GAAP Free Cash Flow and Non-GAAP Free Cash Flow per Share is presented solely as a supplemental disclosure because (i) we believe it is a useful tool for investors to assess the operating performance of the business without the effect of these items; (ii) we believe that investors will find this data useful in assessing shareholder value; and (iii) we use Non-GAAP Total Revenues excluding acquisitions and divestitures, Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted Gross Margin, Non-GAAP Contribution Margin, Non-GAAP Adjusted Operating Income, Non-GAAP Adjusted Net Income, Non-GAAP Adjusted EPS, Non-GAAP Free Cash Flow and Non-GAAP Free Cash Flow per Share internally to evaluate the performance of our personnel and also as a benchmark to evaluate our operating performance or compare our performance to that of our competitors. The use of Non-GAAP Total Revenues excluding acquisitions and divestitures, Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted Gross Margin, Non-GAAP Contribution Margin, Non-GAAP Adjusted Operating Income, Non-GAAP Adjusted Net Income, Non-GAAP Adjusted EPS, Non-GAAP Free Cash Flow and Non-GAAP Free Cash Flow per Share has limitations, and you should not consider these measures in isolation from or as an alternative to GAAP measures such as Operating income, Net income, and Net cash flow provided by operating activities, or cash flow statement data prepared in accordance with GAAP, or as a measure of profitability or liquidity.
The following tables set forth the reconciliation of Non-GAAP Total Revenues excluding acquisitions and divestitures, Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted Gross Margin, Non-GAAP Adjusted Operating Income, Non-GAAP Adjusted Net Income, Non-GAAP Adjusted EPS, Non-GAAP Free Cash Flow and Non-GAAP Free Cash Flow per Share, all of which are non-GAAP financial measures, to GAAP Gross Profit, GAAP Operating Income, GAAP Net Income, GAAP Diluted EPS and GAAP Net cash provided by operating activities, our most directly comparable financial measures presented in accordance with GAAP. Non-GAAP Contribution Margin is reconciled in the Business Segments table immediately preceding this "About Non-GAAP Financial Measures" section,
Reconciliation of GAAP Total Revenues to Non-GAAP Total Revenues excluding acquisitions and divestitures:
Three Months Ended June 30, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
(In thousands) | |||||||||||||||||||
GAAP Total Revenues | $ | 145,702 | $ | 142,512 | |||||||||||||||
Adjustments: (1) |
|||||||||||||||||||
Care Pharma and Hydralyte revenues | (7,280 | ) | — | ||||||||||||||||
Total adjustments | (7,280 | ) | — | ||||||||||||||||
Non-GAAP Total Revenues excluding acquisitions and divestitures | $ | 138,422 | $ | 142,512 |
(1) | Revenue adjustments relate to our International OTC Healthcare segment | |
Reconciliation of GAAP Gross Profit to Non-GAAP Adjusted Gross Margin and related Adjusted Gross Margin percentage:
Three Months Ended June 30, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
GAAP Total Revenues | $ | 145,702 | $ | 142,512 | |||||||||||||||||
GAAP Gross Profit | $ | 81,866 | $ | 83,024 | |||||||||||||||||
Adjustments: |
|||||||||||||||||||||
Inventory step-up charge associated with acquisitions (1) | 130 | — | |||||||||||||||||||
Total adjustments | 130 | — | |||||||||||||||||||
Non-GAAP Adjusted Gross Margin | $ | 81,996 | $ | 83,024 | |||||||||||||||||
Non-GAAP Adjusted Gross Margin % | 56.3 | % | 58.3 | % |
(1) | Inventory step-up charge relates to our International OTC Healthcare segment | |
Reconciliation of GAAP Operating Income to Non-GAAP Adjusted Operating Income:
Three Months Ended June 30, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
(In thousands) | |||||||||||||||||||
GAAP Operating Income | $ | 42,803 | $ | 49,441 | |||||||||||||||
Adjustments: |
|||||||||||||||||||
Inventory step-up charge associated with acquisitions (1) | 130 | — | |||||||||||||||||
Legal and professional fees associated with acquisitions (2) | 1,799 | 583 | |||||||||||||||||
Stamp/Duty Tax on Australian acquisition (2) | 2,940 | — | |||||||||||||||||
Integration, transition and other costs associated with acquisitions (2) | 411 | — | |||||||||||||||||
Total adjustments | 5,280 | 583 | |||||||||||||||||
Non-GAAP Adjusted Operating Income | $ | 48,083 | $ | 50,024 |
(1) | Adjustments relate to our International OTC Healthcare segment | |
(2) | Adjustments relate to G&A expenses | |
Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA:
Three Months Ended June 30, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
(In thousands) | |||||||||||||||||||
GAAP Net Income | $ | 16,732 | $ | 20,692 | |||||||||||||||
Interest expense, net | 14,653 | 15,905 | |||||||||||||||||
Provision for income taxes | 11,418 | 12,844 | |||||||||||||||||
Depreciation and amortization | 2,961 | 3,268 | |||||||||||||||||
Non-GAAP EBITDA: | 45,764 | 52,709 | |||||||||||||||||
Adjustments: |
|||||||||||||||||||
Inventory step-up charge associated with acquisitions (1) | 130 | — | |||||||||||||||||
Legal and professional fees associated with acquisitions (2) | 1,799 | 583 | |||||||||||||||||
Stamp/Duty Tax on Australian acquisition (2) | 2,940 | — | |||||||||||||||||
Integration, transition and other costs associated with acquisitions (2) | 411 | — | |||||||||||||||||
Total adjustments | 5,280 | 583 | |||||||||||||||||
Non-GAAP Adjusted EBITDA | $ | 51,044 | $ | 53,292 |
(1) | Adjustments relate to our International OTC Healthcare segment | |
(2) | Adjustments relate to G&A expenses | |
Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income and related Adjusted Earnings Per Share:
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||
2014 |
2014 |
2013 |
2013 |
||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
GAAP Net Income | $ | 16,732 | $ | 0.32 | $ | 20,692 | $ | 0.40 | |||||||||||||||||||||||||
Adjustments: |
|||||||||||||||||||||||||||||||||
Inventory step-up charge associated with acquisitions (1) | 130 | — | — | — | |||||||||||||||||||||||||||||
Legal and professional fees associated with acquisitions (2) | 1,799 | 0.03 | 583 | — | |||||||||||||||||||||||||||||
Stamp/Duty Tax on Australian acquisition (2) | 2,940 | 0.06 | — | — | |||||||||||||||||||||||||||||
Integration, transition and other costs associated with acquisitions (2) | 411 | 0.01 | — | — | |||||||||||||||||||||||||||||
Tax impact of adjustments | (528 | ) | (0.01 | ) | — | — | |||||||||||||||||||||||||||
Impact of state tax adjustments | — | — | (223 | ) | — | ||||||||||||||||||||||||||||
Total adjustments | 4,752 | 0.09 | 360 | — | |||||||||||||||||||||||||||||
Non-GAAP Adjusted Net Income and Adjusted EPS | $ | 21,484 | $ | 0.41 | $ | 21,052 | $ | 0.40 |
(1) | Adjustments relate to our International OTC Healthcare segment | |
(2) | Adjustments relate to G&A expenses | |
Reconciliation of GAAP Net Cash Provided by Operating Activities to Non-GAAP Free Cash Flow:
Three Months Ended |
||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
GAAP Net cash provided by operating activities | $ | 29,671 | $ | 22,798 | ||||||||||||||||
Additions to property and equipment for cash | (496 | ) | (1,364 | ) | ||||||||||||||||
Non-GAAP Free Cash Flow | $ | 29,175 | $ | 21,434 | ||||||||||||||||
Non-GAAP Free Cash Flow per Share | $ | 0.56 | $ | 0.41 | ||||||||||||||||
Reconciliation of GAAP Net Income and EPS to Non-GAAP Free Cash Flow and Non-GAAP Free Cash Flow per Share:
Three Months Ended June 30, | ||||||||||||||||||||||||||||||||
2014 |
2014 Free |
2013 |
2013 Free |
|||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
GAAP Net Income | $ | 16,732 | $ | 0.32 | $ | 20,692 | $ | 0.40 | ||||||||||||||||||||||||
Adjustments: |
||||||||||||||||||||||||||||||||
Adjustments to reconcile net income to net cash provided by |
12,954 | 0.25 | 12,493 | 0.24 | ||||||||||||||||||||||||||||
Changes in operating assets and liabilities,net of effects |
(15 | ) | — | (10,387 | ) | (0.20 | ) | |||||||||||||||||||||||||
Total adjustments | 12,939 | 0.25 | 2,106 | 0.04 | ||||||||||||||||||||||||||||
GAAP Net cash provided by operating activities | 29,671 | 0.57 | 22,798 | 0.44 | ||||||||||||||||||||||||||||
Purchases of property and equipment | (496 | ) | (0.01 | ) | (1,364 | ) | (0.03 | ) | ||||||||||||||||||||||||
Non-GAAP Free Cash Flow | $ | 29,175 | $ | 0.56 | $ | 21,434 | $ | 0.41 | ||||||||||||||||||||||||
Guidance for Fiscal Year 2015:
Reconciliation of Projected GAAP EPS to Projected Non-GAAP Adjusted EPS:
2015 Projected EPS(a) | ||||||||||||||||||||
Low | High | |||||||||||||||||||
Projected FY'15 GAAP EPS | $ | 1.45 | $ | 1.55 | ||||||||||||||||
Adjustments: |
||||||||||||||||||||
Integration, transition and other costs associated with acquisitions | 0.30 | 0.30 | ||||||||||||||||||
Total Adjustments | 0.30 | 0.30 | ||||||||||||||||||
Projected FY'15 Non-GAAP Adjusted EPS | $ | 1.75 | $ | 1.85 |
(a) | Assumes anticipated closing of the Insight Pharmaceuticals transaction at the end of the first half of fiscal year 2015. | |
Reconciliation of Projected GAAP Net cash provided by operating activities to Projected Non-GAAP Free Cash Flow:
2015 |
||||||||||||
(In millions) | ||||||||||||
Projected FY'15 GAAP Net cash provided by operating activities | $ | 136 | ||||||||||
Projected integration, transition and other costs associated with acquisitions | 20 | |||||||||||
Additions to property and equipment for cash | (6 | ) | ||||||||||
Projected FY'15 Non-GAAP Free Cash Flow | $ | 150 | ||||||||||
Source:
Prestige Brands Holdings, Inc.
Dean Siegal, 914-524-6819