News Releases
Revenues Up 9.1% to
Key first fiscal quarter highlights include:
-
Reported revenues increased 9.1% to
$209.6 million ; -
Net cash provided by operating activities totaled
$50.8 million ; - Integration of DenTek® acquisition is complete; focus on brand-building continues;
-
Entered into an agreement to divest three non-core brands for
$40.0 million plus inventory and completed the transaction onJuly 7, 2016 .
“We are very pleased with the Company’s first quarter financial
results,” said
Mr. Lombardi continued, “We are also pleased with the progress made in
strategic portfolio management on two fronts. First, we completed the
integration of the DenTek acquisition into our business. Second, we
completed a transaction in early July to divest three non-core brands
for approximately
First Fiscal Quarter Ended
Reported revenues for the first quarter of fiscal 2017 were
Reported net loss for the first quarter of fiscal 2017 totaled
Free Cash Flow & Balance Sheet
The Company's Net cash provided by operating activities was
The Company's net debt at
Segment Review
Reported revenues for the
Outlook
Mr. Lombardi said, “To reflect the divestiture of the three non-core
brands, we are updating the previously provided outlook for revenues for
fiscal 2017, and reconfirming the previously provided estimates for
adjusted earnings per share and adjusted free cash flow. We are reducing
our revenue outlook by
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 and
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
"assumptions," "target," "guidance," “strategy,” "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 Company's
expectations regarding future operating results including
revenues, adjusted earnings per share and adjusted free cash flow, and
the Company’s portfolio mix. 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,
including the impact of our advertising and promotional initiatives, the
severity of the cold and flu season, general economic and business
conditions, fluctuating foreign exchange rates, consumer trends,
competition in our industry, the ability of our third party
manufacturers and suppliers to meet demand for our products, and
introductions of new products. A discussion of other factors that could
cause results to vary is included in the Company's Annual Report on Form
10-K for the year ended
Prestige Brands Holdings, Inc. | |||||||||||||||||||||
Consolidated Statements of Operations and Comprehensive Income | |||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||
Three Months Ended June 30, | |||||||||||||||||||||
(In thousands, except per share data) |
2016 | 2015 | |||||||||||||||||||
Revenues | |||||||||||||||||||||
Net sales | $ | 208,770 | $ | 191,287 | |||||||||||||||||
Other revenues | 805 | 845 | |||||||||||||||||||
Total revenues | 209,575 | 192,132 | |||||||||||||||||||
Cost of Sales | |||||||||||||||||||||
Cost of sales (exclusive of depreciation shown below) | 87,984 | 79,896 | |||||||||||||||||||
Gross profit | 121,591 | 112,236 | |||||||||||||||||||
Operating Expenses | |||||||||||||||||||||
Advertising and promotion | 27,635 | 26,422 | |||||||||||||||||||
General and administrative | 19,457 | 17,589 | |||||||||||||||||||
Depreciation and amortization | 6,832 | 5,720 | |||||||||||||||||||
Loss on sale of assets | 55,453 | — | |||||||||||||||||||
Total operating expenses | 109,377 | 49,731 | |||||||||||||||||||
Operating income | 12,214 | 62,505 | |||||||||||||||||||
Other (income) expense | |||||||||||||||||||||
Interest income | (57 | ) | (27 | ) | |||||||||||||||||
Interest expense | 21,184 | 21,911 | |||||||||||||||||||
Loss on extinguishment of debt | — | 451 | |||||||||||||||||||
Total other expense | 21,127 | 22,335 | |||||||||||||||||||
(Loss) income before income taxes | (8,913 | ) | 40,170 | ||||||||||||||||||
(Benefit) provision for income taxes | (3,382 | ) | 13,997 | ||||||||||||||||||
Net (loss) income | $ | (5,531 | ) | $ | 26,173 | ||||||||||||||||
(Loss) earnings per share: | |||||||||||||||||||||
Basic | $ | (0.10 | ) | $ | 0.50 | ||||||||||||||||
Diluted | $ | (0.10 | ) | $ | 0.49 | ||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||
Basic | 52,881 | 52,548 | |||||||||||||||||||
Diluted | 52,881 | 52,958 | |||||||||||||||||||
Comprehensive (loss) income, net of tax: | |||||||||||||||||||||
Currency translation adjustments | (5,824 | ) | (405 | ) | |||||||||||||||||
Total other comprehensive loss | (5,824 | ) | (405 | ) | |||||||||||||||||
Comprehensive (loss) income | $ | (11,355 | ) | $ | 25,768 | ||||||||||||||||
Prestige Brands Holdings, Inc. | |||||||||||||||||||||
Consolidated Balance Sheets | |||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||
(In thousands) Assets |
June 30, 2016 |
March 31, 2016 |
|||||||||||||||||||
Current assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 28,877 | $ | 27,230 | |||||||||||||||||
Accounts receivable, net | 88,437 | 95,247 | |||||||||||||||||||
Inventories | 92,867 | 91,263 | |||||||||||||||||||
Deferred income tax assets | 10,702 | 10,108 | |||||||||||||||||||
Prepaid expenses and other current assets | 18,730 | 25,165 | |||||||||||||||||||
Assets held for sale | 41,745 | — | |||||||||||||||||||
Total current assets | 281,358 | 249,013 | |||||||||||||||||||
Property and equipment, net | 15,080 | 15,540 | |||||||||||||||||||
Goodwill | 356,525 | 360,191 | |||||||||||||||||||
Intangible assets, net | 2,223,559 | 2,322,723 | |||||||||||||||||||
Other long-term assets | 1,918 | 1,324 | |||||||||||||||||||
Total Assets | $ | 2,878,440 | $ | 2,948,791 | |||||||||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||
Current liabilities | |||||||||||||||||||||
Accounts payable | $ | 35,012 | $ | 38,296 | |||||||||||||||||
Accrued interest payable | 9,216 | 8,664 | |||||||||||||||||||
Other accrued liabilities | 55,913 | 59,724 | |||||||||||||||||||
Total current liabilities | 100,141 | 106,684 | |||||||||||||||||||
Long-term debt | |||||||||||||||||||||
Principal amount | 1,602,500 | 1,652,500 | |||||||||||||||||||
Less unamortized debt costs | (25,086 | ) | (27,191 | ) | |||||||||||||||||
Long-term debt, net | 1,577,414 | 1,625,309 | |||||||||||||||||||
Deferred income tax liabilities | 460,557 | 469,622 | |||||||||||||||||||
Other long-term liabilities | 2,847 | 2,840 | |||||||||||||||||||
Total Liabilities | 2,140,959 | 2,204,455 | |||||||||||||||||||
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 - 53,247 shares at June 30, 2016 and 53,066 shares at March 31, 2016 | 532 | 530 | |||||||||||||||||||
Additional paid-in capital | 451,075 | 445,182 | |||||||||||||||||||
Treasury stock, at cost - 331 shares at June 30, 2016 and 306 shares at March 31, 2016 | (6,558 | ) | (5,163 | ) | |||||||||||||||||
Accumulated other comprehensive loss, net of tax | (29,349 | ) | (23,525 | ) | |||||||||||||||||
Retained earnings | 321,781 | 327,312 | |||||||||||||||||||
Total Stockholders' Equity | 737,481 | 744,336 | |||||||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 2,878,440 | $ | 2,948,791 | |||||||||||||||||
Prestige Brands Holdings, Inc. | ||||||||||||||||||||
Consolidated Statements of Cash Flows | ||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
Three Months Ended June 30, | ||||||||||||||||||||
(In thousands) | 2016 | 2015 | ||||||||||||||||||
Operating Activities | ||||||||||||||||||||
Net (loss) income | $ | (5,531 | ) | $ | 26,173 | |||||||||||||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||||||||||||||
Depreciation and amortization | 6,832 | 5,720 | ||||||||||||||||||
Loss (gain) on sale of assets | 55,453 | (36 | ) | |||||||||||||||||
Deferred income taxes | (9,660 | ) | 11,536 | |||||||||||||||||
Amortization of debt origination costs | 2,231 | 2,138 | ||||||||||||||||||
Stock-based compensation costs | 1,940 | 3,047 | ||||||||||||||||||
Loss on extinguishment of debt | — | 451 | ||||||||||||||||||
Changes in operating assets and liabilities, net of effects from acquisitions | ||||||||||||||||||||
Accounts receivable | 5,151 | 2,578 | ||||||||||||||||||
Inventories | (4,327 | ) | (211 | ) | ||||||||||||||||
Prepaid expenses and other current assets | 5,697 | (1,522 | ) | |||||||||||||||||
Accounts payable | (3,401 | ) | 783 | |||||||||||||||||
Accrued liabilities | (3,634 | ) | (7,136 | ) | ||||||||||||||||
Net cash provided by operating activities | 50,751 | 43,521 | ||||||||||||||||||
Investing Activities | ||||||||||||||||||||
Purchases of property and equipment | (895 | ) | (780 | ) | ||||||||||||||||
Proceeds from the sale of property and equipment | — | 344 | ||||||||||||||||||
Net cash used in investing activities | (895 | ) | (436 | ) | ||||||||||||||||
Financing Activities | ||||||||||||||||||||
Term loan repayments | (50,000 | ) | (25,000 | ) | ||||||||||||||||
Borrowings under revolving credit agreement | — | 15,000 | ||||||||||||||||||
Repayments under revolving credit agreement | — | (35,000 | ) | |||||||||||||||||
Payments of debt origination costs | (9 | ) | (4,172 | ) | ||||||||||||||||
Proceeds from exercise of stock options | 3,405 | 6,328 | ||||||||||||||||||
Proceeds from restricted stock exercises | — | 544 | ||||||||||||||||||
Excess tax benefits from share-based awards | 550 | 1,600 | ||||||||||||||||||
Fair value of shares surrendered as payment of tax withholding | (1,395 | ) | (2,187 | ) | ||||||||||||||||
Net cash used in financing activities | (47,449 | ) | (42,887 | ) | ||||||||||||||||
Effects of exchange rate changes on cash and cash equivalents | (760 | ) | 82 | |||||||||||||||||
Increase in cash and cash equivalents | 1,647 | 280 | ||||||||||||||||||
Cash and cash equivalents - beginning of period | 27,230 | 21,318 | ||||||||||||||||||
Cash and cash equivalents - end of period | $ | 28,877 | $ | 21,598 | ||||||||||||||||
Interest paid | $ | 18,337 | $ | 22,444 | ||||||||||||||||
Income taxes paid | $ | 1,357 | $ | 1,914 | ||||||||||||||||
Prestige Brands Holdings, Inc. | ||||||||||||||||||||||||||||||||||
Consolidated Statements of Operations | ||||||||||||||||||||||||||||||||||
Business Segments | ||||||||||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2016 | ||||||||||||||||||||||||||||||||||
(In thousands) |
North |
International |
Household |
Consolidated | ||||||||||||||||||||||||||||||
Gross segment revenues | $ | 173,301 | $ | 15,800 | $ | 20,890 | $ | 209,991 | ||||||||||||||||||||||||||
Elimination of intersegment revenues | (1,221 | ) | — | — | (1,221 | ) | ||||||||||||||||||||||||||||
Third-party segment revenues | 172,080 | 15,800 | 20,890 | 208,770 | ||||||||||||||||||||||||||||||
Other revenues | — | 4 | 801 | 805 | ||||||||||||||||||||||||||||||
Total segment revenues | 172,080 | 15,804 | 21,691 | 209,575 | ||||||||||||||||||||||||||||||
Cost of sales | 65,718 | 5,464 | 16,802 | 87,984 | ||||||||||||||||||||||||||||||
Gross profit | 106,362 | 10,340 | 4,889 | 121,591 | ||||||||||||||||||||||||||||||
Advertising and promotion | 25,040 | 2,124 | 471 | 27,635 | ||||||||||||||||||||||||||||||
Contribution margin | $ | 81,322 | $ | 8,216 | $ | 4,418 | 93,956 | |||||||||||||||||||||||||||
Other operating expenses* | 81,742 | |||||||||||||||||||||||||||||||||
Operating income | 12,214 | |||||||||||||||||||||||||||||||||
Other expense | 21,127 | |||||||||||||||||||||||||||||||||
Loss before income taxes | (8,913 | ) | ||||||||||||||||||||||||||||||||
Benefit for income taxes | (3,382 | ) | ||||||||||||||||||||||||||||||||
Net loss | $ | (5,531 | ) | |||||||||||||||||||||||||||||||
*Other operating expenses includes a pre-tax loss on sale of assets of
Three Months Ended June 30, 2015 | ||||||||||||||||||||||||||||||||||
(In thousands) |
North |
International |
Household |
Consolidated | ||||||||||||||||||||||||||||||
Gross segment revenues | $ | 156,339 | $ | 14,209 | $ | 21,467 | $ | 192,015 | ||||||||||||||||||||||||||
Elimination of intersegment revenues | (728 | ) | — | — | (728 | ) | ||||||||||||||||||||||||||||
Third-party segment revenues | 155,611 | 14,209 | 21,467 | 191,287 | ||||||||||||||||||||||||||||||
Other revenues** | 15 | 25 | 805 | 845 | ||||||||||||||||||||||||||||||
Total segment revenues | 155,626 | 14,234 | 22,272 | 192,132 | ||||||||||||||||||||||||||||||
Cost of sales** | 58,503 | 4,913 | 16,480 | 79,896 | ||||||||||||||||||||||||||||||
Gross profit | 97,123 | 9,321 | 5,792 | 112,236 | ||||||||||||||||||||||||||||||
Advertising and promotion | 23,195 | 2,723 | 504 | 26,422 | ||||||||||||||||||||||||||||||
Contribution margin | $ | 73,928 | $ | 6,598 | $ | 5,288 | 85,814 | |||||||||||||||||||||||||||
Other operating expenses | 23,309 | |||||||||||||||||||||||||||||||||
Operating income | 62,505 | |||||||||||||||||||||||||||||||||
Other expense | 22,335 | |||||||||||||||||||||||||||||||||
Income before income taxes | 40,170 | |||||||||||||||||||||||||||||||||
Provision for income taxes | 13,997 | |||||||||||||||||||||||||||||||||
Net income | $ | 26,173 |
**Certain immaterial amounts relating to other revenues and cost of
sales were reclassified between the
About Non-GAAP Financial Measures
We define Non-GAAP Organic Revenues as Total Revenues excluding revenues associated with products acquired or divested in the periods presented. We define Non-GAAP Organic Revenues on a Constant Currency basis as Total Revenues excluding acquisitions and divestitures and the impact of current year foreign exchange rates on total revenues. We define Non-GAAP Adjusted EBITDA as earnings before interest expense (income), income taxes, depreciation and amortization, certain other legal and professional fees, other acquisition-related costs, divestiture costs, costs associated with our CEO transition, loss on sale of assets, and loss on extinguishment of debt. Non-GAAP Adjusted EBITDA Margin is calculated as Non-GAAP Adjusted EBITDA divided by GAAP Total Revenues. We define Non-GAAP Adjusted General and Administrative expenses as General and Administrative expenses minus certain other legal and professional fees, acquisition and other integration costs, divestiture costs, and costs associated with our CEO transition. Non-GAAP Adjusted General and Administrative expense percentage is calculated based on Non-GAAP Adjusted General and Administrative expense divided by GAAP Total Revenues. We define Non-GAAP Adjusted Net Income as Net Income before certain other legal and professional fees, other acquisition and integration-related costs, divestiture costs, costs associated with our CEO transition, accelerated amortization of debt origination costs, loss on sale of assets, loss on extinguishment of debt, and the applicable tax impacts associated with these items 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. We define Non-GAAP Adjusted Free Cash Flow as net cash provided by operating activities less purchases of property and equipment plus integration, transition, and other payments associated with acquisitions and divestitures. Non-GAAP Organic Revenues, Non-GAAP Organic Revenues on a Constant Currency basis, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted EBITDA Margin, Non-GAAP Adjusted General and Administrative Expense, Non-GAAP Adjusted General and Administrative Expense percentage, Non-GAAP Adjusted Net Income, Non-GAAP Adjusted EPS, Non-GAAP Free Cash Flow, and Non-GAAP Adjusted Free Cash Flow may not be comparable to similarly titled measures reported by other companies.
We are presenting Non-GAAP Organic Revenues, Non-GAAP Organic Revenues on a Constant Currency basis, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted EBITDA Margin, Non-GAAP Adjusted General and Administrative Expense, Non-GAAP Adjusted General and Administrative Expense percentage, Non-GAAP Adjusted Net Income, Non-GAAP Adjusted EPS, Non-GAAP Free Cash Flow, and Non-GAAP Adjusted Free Cash Flow, because they provide additional ways to view our operation when considered with both our GAAP results and the reconciliation to net (loss) income and net cash provided by operating activities, respectively, which we believe provides a more complete understanding of our business than could be obtained absent this disclosure. Each of Non-GAAP Organic Revenues, Non-GAAP Organic Revenues on a Constant Currency basis, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted EBITDA Margin, Non-GAAP Adjusted General and Administrative Expense, Non-GAAP Adjusted General and Administrative Expense percentage, Non-GAAP Adjusted Net Income, Non-GAAP Adjusted EPS, Non-GAAP Free Cash Flow, and Non-GAAP Adjusted Free Cash Flow 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 Organic Revenues, Non-GAAP Organic Revenues on a Constant Currency basis, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted EBITDA Margin, Non-GAAP Adjusted General and Administrative Expense, Non-GAAP Adjusted General and Administrative Expense percentage, Non-GAAP Adjusted Net Income, Non-GAAP Adjusted EPS, Non-GAAP Free Cash Flow, and Non-GAAP Adjusted Free Cash Flow 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 Organic Revenues, Non-GAAP Organic Revenues on a Constant Currency basis, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted EBITDA Margin, Non-GAAP Adjusted General and Administrative Expense, Non-GAAP Adjusted General and Administrative Expense percentage, Non-GAAP Adjusted Net Income, Non-GAAP Adjusted EPS, Non-GAAP Free Cash Flow, and Non-GAAP Adjusted Free Cash Flow have limitations, and you should not consider these measures in isolation from or as an alternative to GAAP measures such as Total Revenues, General and Administrative expense, Operating income, Net (loss) 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 Organic Revenues, Non-GAAP Organic Revenues on a Constant Currency basis, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted EBITDA Margin, Non-GAAP Adjusted General and Administrative Expense, Non-GAAP Adjusted General and Administrative Expense percentage, Non-GAAP Adjusted Net Income, Non-GAAP Adjusted EPS, Non-GAAP Free Cash Flow, and Non-GAAP Adjusted Free Cash Flow, all of which are non-GAAP financial measures, to GAAP Total Revenues, GAAP General and Administrative Expense, GAAP Net (Loss) Income, GAAP Diluted EPS and GAAP Net cash provided by operating activities, our most directly comparable financial measures presented in accordance with GAAP.
Reconciliation of GAAP Total Revenues to Non-GAAP Organic Revenues and Non-GAAP Organic Revenues on a Constant Currency basis and related growth percentages:
Three Months Ended June 30, | |||||||||||||||||||
2016 | 2015 | ||||||||||||||||||
(In thousands) | |||||||||||||||||||
GAAP Total Revenues | $ | 209,575 | $ | 192,132 | |||||||||||||||
Adjustments: |
|||||||||||||||||||
DenTek revenues (1) | (16,627 | ) | — | ||||||||||||||||
Total adjustments | (16,627 | ) | — | ||||||||||||||||
Non-GAAP Organic Revenues | 192,948 | 192,132 | |||||||||||||||||
Organic Revenue Growth (Decline) | 0.4 | % | |||||||||||||||||
Impact of foreign currency exchange rates (2) | (829 | ) | |||||||||||||||||
Non-GAAP Organic Revenues on a constant currency basis | $ | 192,948 | $ | 191,303 | |||||||||||||||
Constant Currency Organic Revenue Growth | 0.9 | % |
(1) | Revenue adjustments relate to our North American and International OTC Healthcare segment | |
(2) | Foreign currency exchange rate adjustments relate to all segments | |
Reconciliation of GAAP General and Administrative Expense to Non-GAAP Adjusted General and Administrative Expense and related Non-GAAP Adjusted General and Administrative Expense percentage:
Three Months Ended June 30, | |||||||||||||||||||
2016 | 2015 | ||||||||||||||||||
(In thousands) |
|||||||||||||||||||
GAAP General and Administrative Expense | $ | 19,457 | $ | 17,589 | |||||||||||||||
Adjustments: |
|||||||||||||||||||
Costs associated with CEO transition | — | 1,406 | |||||||||||||||||
Legal and professional fees associated with acquisitions and divestitures | 484 | — | |||||||||||||||||
Integration, transition and other costs associated with acquisitions and divestitures | 1,641 | — | |||||||||||||||||
Total adjustments | 2,125 | 1,406 | |||||||||||||||||
Non-GAAP Adjusted General and Administrative Expense | $ | 17,332 | $ | 16,183 | |||||||||||||||
Non-GAAP Adjusted General and Administrative Expense Percentage | 8.3 | % | 8.4 | % | |||||||||||||||
Reconciliation of GAAP Net (Loss) Income to Non-GAAP Adjusted EBITDA and related Non-GAAP Adjusted EBITDA Margin:
Three Months Ended June 30, | ||||||||||||||||||
2016 | 2015 | |||||||||||||||||
(In thousands) | ||||||||||||||||||
GAAP Net (Loss) Income | $ | (5,531 | ) | $ | 26,173 | |||||||||||||
Interest expense, net | 21,127 | 21,884 | ||||||||||||||||
(Benefit) provision for income taxes | (3,382 | ) | 13,997 | |||||||||||||||
Depreciation and amortization | 6,832 | 5,720 | ||||||||||||||||
Non-GAAP EBITDA: | 19,046 | 67,774 | ||||||||||||||||
Adjustments: |
||||||||||||||||||
Costs associated with CEO transition (1) | — | 1,406 | ||||||||||||||||
Legal and professional fees associated with acquisitions and divestitures (1) | 484 | — | ||||||||||||||||
Integration, transition and other costs associated with acquisitions and divestitures (1) | 1,641 | — | ||||||||||||||||
Loss on extinguishment of debt | — | 451 | ||||||||||||||||
Loss on sale of assets | 55,453 | — | ||||||||||||||||
Total adjustments | 57,578 | 1,857 | ||||||||||||||||
Non-GAAP Adjusted EBITDA | $ | 76,624 | $ | 69,631 | ||||||||||||||
Non-GAAP Adjusted EBITDA Margin | 36.6 | % | 36.2 | % |
(1) Adjustments relate to G&A expenses |
Reconciliation of GAAP Net (Loss) Income to Non-GAAP Adjusted Net Income and related Adjusted Earnings Per Share:
Three Months Ended June 30, | |||||||||||||||||||||||||||||
2016 |
2016 |
2015 |
2015 |
||||||||||||||||||||||||||
(In thousands) |
|||||||||||||||||||||||||||||
GAAP Net (Loss) Income | $ | (5,531 | ) | $ | (0.10 | ) | $ | 26,173 | $ | 0.49 | |||||||||||||||||||
Adjustments: |
|||||||||||||||||||||||||||||
Costs associated with CEO transition (1) | — | — | 1,406 | 0.03 | |||||||||||||||||||||||||
Legal and professional fees associated with acquisitions and divestitures (1) | 484 | 0.01 | — | — | |||||||||||||||||||||||||
Integration, transition and other costs associated with acquisitions and divestitures (1) | 1,641 | 0.03 | — | — | |||||||||||||||||||||||||
Loss on extinguishment of debt | — | — | 451 | 0.01 | |||||||||||||||||||||||||
Loss on sale of assets | 55,453 | 1.04 | — | — | |||||||||||||||||||||||||
Tax impact of adjustments | (20,658 | ) | (0.39 | ) | (657 | ) | (0.01 | ) | |||||||||||||||||||||
Total adjustments | 36,920 | 0.69 | 1,200 | 0.03 | |||||||||||||||||||||||||
Non-GAAP Adjusted Net Income and Adjusted EPS | $ | 31,389 | $ | 0.59 | $ | 27,373 | $ | 0.52 |
(1) Adjustments relate to G&A expenses |
Reconciliation of GAAP Net (Loss) Income to Non-GAAP Free Cash Flow and Non-GAAP Adjusted Free Cash Flow:
Three Months Ended June 30, | |||||||||||||||||
2016 | 2015 | ||||||||||||||||
(In thousands) |
|||||||||||||||||
GAAP Net (Loss) Income | $ | (5,531 | ) | $ | 26,173 | ||||||||||||
Adjustments: |
|||||||||||||||||
Adjustments to reconcile net (loss) income to net |
56,796 | 22,856 | |||||||||||||||
Changes in operating assets and liabilities, net of |
(514 | ) | (5,508 | ) | |||||||||||||
Total adjustments | 56,282 | 17,348 | |||||||||||||||
GAAP Net cash provided by operating activities | 50,751 | 43,521 | |||||||||||||||
Purchases of property and equipment | (895 | ) | (780 | ) | |||||||||||||
Non-GAAP Free Cash Flow | 49,856 | 42,741 | |||||||||||||||
Integration, transition and other payments |
331 | — | |||||||||||||||
Adjusted Non-GAAP Free Cash Flow | $ | 50,187 | $ | 42,741 | |||||||||||||
Outlook for Fiscal Year 2017:
Reconciliation of Projected GAAP EPS to Projected Non-GAAP Adjusted EPS:
2017 Projected EPS |
||||||||||||||||||||
Low | High | |||||||||||||||||||
Projected FY'17 GAAP EPS | $ | 1.55 | $ | 1.61 | ||||||||||||||||
Adjustments: | ||||||||||||||||||||
Costs associated with DenTek integration | 0.08 | 0.08 | ||||||||||||||||||
Loss on sale of assets | 0.67 | 0.67 | ||||||||||||||||||
Total Adjustments | 0.75 | 0.75 | ||||||||||||||||||
Projected Non-GAAP Adjusted EPS | $ | 2.30 | $ | 2.36 | ||||||||||||||||
Reconciliation of Projected GAAP Net cash provided by operating activities to Projected Non-GAAP Adjusted Free Cash Flow:
2017 |
|||||||||||
(In millions) |
|||||||||||
Projected FY'17 GAAP Net cash provided by operating activities | $ | 190 | |||||||||
Additions to property and equipment for cash | (8 | ) | |||||||||
Projected Non-GAAP Free Cash Flow | 182 | ||||||||||
Payments associated with acquisitions | 3 | ||||||||||
Adjusted Non-GAAP Projected Free Cash Flow | $ | 185 | |||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160804005230/en/
Source:
Prestige Brands Holdings, Inc.
Dean Siegal, 914-524-6819