News Releases
Revenues for the fourth fiscal quarter were
Gross profit for the fourth fiscal quarter was
The Company continued its investment in Advertising and Promotion
(“A&P”) during the quarter in support of its core OTC brands and certain
recently acquired OTC brands. A&P for the quarter was
Operating income for the fourth fiscal quarter was
In the fourth fiscal quarter, the Company's diluted earnings per share
from continuing operations was
Commentary
“We are pleased with the excellent revenue and adjusted EPS growth in the Company's fourth fiscal quarter. We recorded our seventh consecutive quarter of organic core OTC growth achieving the highest growth rate in almost two years. With this organic growth performance, Prestige ranks near the top of many CPG industry participants” commented Matthew M. Mannelly, President and CEO. “In less than three years, our clear and consistent value creation strategy has taken hold. We have transformed Prestige into the largest independent OTC products company in the U.S. with a proven ability to generate consistent organic growth in our core OTC business coupled with a leading free cash flow profile,” he said.
“This quarter's revenue increase reflects the success of our core OTC brand-building strategy, and includes two months of revenues from this quarter's GSK Brands' acquisition. Consumption was driven by increased A&P support resulting in our brands' growth significantly exceeding category growth. Our nine legacy core OTC brands increased almost 15% despite the soft cough/cold season.”
“For the fiscal year, we achieved record revenues and earnings growth, which exceeded our expectations. Our consistently strong free cash flow continued in fiscal 2012, and helped fund the most transformative event in our history-the acquisition of 17 brands from GSK,” Mr. Mannelly said. “This is a meaningful step toward continued shareholder value creation. Our M&A strategy in action has transformed Prestige into a company with approximately 90% of profits derived from higher growth, higher margin OTC brands,” he said.
“The integration of the GSK Brands, our third acquisition in the past year and a half, is proceeding on schedule. We are excited by the potential created by this opportunity, which significantly enhances our portfolio by adding five new core OTC brands. This acquisition closely aligns with our operating model and we believe it is highly cash generative,” he said.
“We've made a steadfast commitment to creating value by driving core OTC
growth, acquiring with an exclusive OTC focus, and strategically
managing our portfolio. We have much to do in fiscal 2013. Our new
product pipeline is robust. We will continue to develop the potential of
our two prior acquisitions, Blacksmith Brands and Dramamine®.
Furthermore, we will endeavor to participate in M&A within the OTC space
to continue the strategic transformation process. Our confidence in our
future is reflected in the guidance we previously provided for fiscal
year 2013, anticipating diluted adjusted earnings per share to be in the
range of
Results by Segment for the Fourth Fiscal Quarter
Revenues for the OTC segment in the fourth fiscal quarter were
Revenues for the Household Cleaning segment for the fourth fiscal
quarter were
Fiscal Year 2012
Revenues for fiscal 2012 were
Income from continuing operations for fiscal 2012 of
Income from continuing operations for fiscal 2011 was impacted by costs
of
Diluted earnings per share from continuing operations for fiscal 2012
was
Outlook
For fiscal year 2013, which began on
Free Cash Flow and Debt
Free cash flow (“FCF”) 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 net cash provided by operating activities minus capital expenditures.
The Company's FCF for the fourth quarter ended
For fiscal 2012, FCF totaled
Conference Call and Accompanying Slide Presentation
The Company will host a conference call to review its fourth quarter and
year end results on
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
"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.
Forward-looking statements in this news release include, without
limitation, statements regarding the impact of our M&A strategy, our
ability to integrate and develop the brands that we acquire, our new
product pipeline, and our outlook for adjusted earnings per share and
our plans for growth. These statements are based on management's
estimates and assumptions with respect to future events and financial
performance and are believed to be reasonable, although they 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
reports filed with the
Prestige Brands Holdings, Inc. Consolidated Statements of Operations (Unaudited) |
||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
March 31, | Year Ended March 31, | |||||||||||||||||||
(In thousands, except per share data) | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||
Revenues | ||||||||||||||||||||
Net sales | $ | 133,160 | $ | 95,629 | $ | 437,838 | $ | 333,715 | ||||||||||||
Other revenues | 836 | 734 | 3,247 | 2,795 | ||||||||||||||||
Total revenues | 133,996 | 96,363 | 441,085 | 336,510 | ||||||||||||||||
Cost of Sales | ||||||||||||||||||||
Cost of sales (exclusive of depreciation shown below) | 65,508 | 50,058 | 213,701 | 165,632 | ||||||||||||||||
Gross profit | 68,488 | 46,305 | 227,384 | 170,878 | ||||||||||||||||
Operating Expenses | ||||||||||||||||||||
Advertising and promotion | 18,547 | 14,122 | 57,127 | 42,897 | ||||||||||||||||
General and administrative | 24,334 | 11,019 | 56,700 | 41,960 | ||||||||||||||||
Depreciation and amortization | 3,051 | 2,540 | 10,734 | 9,876 | ||||||||||||||||
Total operating expenses | 45,932 | 27,681 | 124,561 | 94,733 | ||||||||||||||||
Operating income | 22,556 | 18,624 | 102,823 | 76,145 | ||||||||||||||||
Other (income) expense | ||||||||||||||||||||
Interest income | (14 | ) | (1 | ) | (18 | ) | (1 | ) | ||||||||||||
Interest expense | 16,361 | 8,810 | 41,338 | 27,318 | ||||||||||||||||
Gain on settlement | — | — | (5,063 | ) | — | |||||||||||||||
Loss on extinguishment of debt | 5,409 | — | 5,409 | 300 | ||||||||||||||||
Total other expense | 21,756 | 8,809 | 41,666 | 27,617 | ||||||||||||||||
Income from continuing operations before income taxes | 800 | 9,815 | 61,157 | 48,528 | ||||||||||||||||
Provision for income taxes | 815 | 3,401 | 23,945 | 19,349 | ||||||||||||||||
Income (loss) from continuing operations | (15 | ) | 6,414 | 37,212 | 29,179 | |||||||||||||||
Discontinued Operations | ||||||||||||||||||||
Income from discontinued operations, net of income tax | — | — | — | 591 | ||||||||||||||||
Loss on sale of discontinued operations, net of income tax | — | — | — | (550 | ) | |||||||||||||||
Net income (loss) | $ | (15 | ) | $ | 6,414 | $ | 37,212 | $ | 29,220 | |||||||||||
Basic earnings per share: | ||||||||||||||||||||
Income from continuing operations | $ | — | $ | 0.13 | $ | 0.74 | $ | 0.58 | ||||||||||||
Income from discontinued operations and loss on sale of discontinued operations | — | — | — | — | ||||||||||||||||
Net income | $ | — | $ | 0.13 | $ | 0.74 | $ | 0.58 | ||||||||||||
Diluted earnings per share: | ||||||||||||||||||||
Income from continuing operations | $ | — | $ | 0.13 | $ | 0.73 | $ | 0.58 | ||||||||||||
Income from discontinued operations and loss on sale of discontinued operations | — | — | — | — | ||||||||||||||||
Net income | $ | — | $ | 0.13 | $ | 0.73 | $ | 0.58 | ||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||
Basic | 50,314 | 50,129 | 50,270 | 50,081 | ||||||||||||||||
Diluted | 50,992 | 50,555 | 50,748 | 50,338 |
Prestige Brands Holdings, Inc. Consolidated Balance Sheets (Unaudited) |
||||||||||
(In thousands)
Assets |
March 31, 2012 |
March 31, 2011 |
||||||||
Current assets | ||||||||||
Cash and cash equivalents | $ | 19,015 | $ | 13,334 | ||||||
Accounts receivable, net | 60,228 | 44,393 | ||||||||
Inventories | 51,113 | 39,751 | ||||||||
Deferred income tax assets | 5,283 | 5,292 | ||||||||
Prepaid expenses and other current assets | 11,396 | 4,812 | ||||||||
Total current assets | 147,035 | 107,582 | ||||||||
Property and equipment, net | 1,304 | 1,444 | ||||||||
Goodwill | 173,702 | 154,896 | ||||||||
Intangible assets, net | 1,400,522 | 786,361 | ||||||||
Other long-term assets | 35,713 | 6,635 | ||||||||
Total Assets | $ | 1,758,276 | $ | 1,056,918 | ||||||
Liabilities and Stockholders' Equity | ||||||||||
Current liabilities | ||||||||||
Accounts payable | $ | 26,726 | $ | 21,615 | ||||||
Accrued interest payable | 13,889 | 10,313 | ||||||||
Other accrued liabilities | 23,308 | 22,280 | ||||||||
Total current liabilities | 63,923 | 54,208 | ||||||||
Long-term debt | ||||||||||
Principal amount | 1,135,000 | 492,000 | ||||||||
Less unamortized discount | (11,092 | ) | (5,055 | ) | ||||||
Long-term debt, net of unamortized discount | 1,123,908 | 486,945 | ||||||||
Deferred income tax liabilities | 167,717 | 153,933 | ||||||||
Total Liabilities | 1,355,548 | 695,086 | ||||||||
Stockholders' Equity | ||||||||||
Preferred stock - $0.01 par value | ||||||||||
Authorized - 5,000 shares | ||||||||||
Issued and outstanding - None | — | — | ||||||||
Preferred share rights | 283 | — | ||||||||
Common stock - $0.01 par value | ||||||||||
Authorized - 250,000 shares | ||||||||||
Issued - 50,466 shares and 50,276 shares at March 31, 2012 and 2011, respectively | 505 | 503 | ||||||||
Additional paid-in capital | 391,898 | 387,932 | ||||||||
Treasury stock, at cost - 181 shares at March 31, 2012 and 160 shares at March 31, 2011 | (687 | ) | (416 | ) | ||||||
Accumulated other comprehensive loss, net of tax | (13 | ) | — | |||||||
Retained earnings (accumulated deficit) | 10,742 | (26,187 | ) | |||||||
Total Stockholders' Equity | 402,728 | 361,832 | ||||||||
Total Liabilities and Stockholders' Equity | $ | 1,758,276 | $ | 1,056,918 | ||||||
Prestige Brands Holdings, Inc. Consolidated Statements of Cash Flows (Unaudited) |
||||||||||
Year Ended March 31, | ||||||||||
(In thousands) | 2012 | 2011 | ||||||||
Operating Activities | ||||||||||
Net income | $ | 37,212 | $ | 29,220 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
Depreciation and amortization | 10,734 | 10,108 | ||||||||
Loss on sale of discontinued operations | — | 890 | ||||||||
Deferred income taxes | 13,793 | 9,324 | ||||||||
Amortization of deferred financing costs | 1,630 | 1,043 | ||||||||
Stock-based compensation costs | 3,078 | 3,575 | ||||||||
Loss on extinguishment of debt | 5,409 | 300 | ||||||||
Amortization of debt discount | 1,030 | 702 | ||||||||
Loss on disposal of equipment | — | 153 | ||||||||
Changes in operating assets and liabilities, net of effects of acquisitions | ||||||||||
Accounts receivable | (15,854 | ) | 4,918 | |||||||
Inventories | 3,710 | 12,443 | ||||||||
Prepaid expenses and other current assets | (3,009 | ) | 154 | |||||||
Accounts payable | 5,127 | 1,784 | ||||||||
Accrued liabilities | 4,592 | 12,056 | ||||||||
Net cash provided by operating activities | 67,452 | 86,670 | ||||||||
Investing Activities | ||||||||||
Purchases of equipment | (606 | ) | (655 | ) | ||||||
Proceeds from sale of property and equipment | — | 12 | ||||||||
Proceeds from sale of discontinued operations | — | 4,122 | ||||||||
Acquisition of Blacksmith, net of cash acquired | — | (202,044 | ) | |||||||
Proceeds from escrow of Blacksmith acquisition | 1,200 | — | ||||||||
Acquisition of Dramamine | — | (77,115 | ) | |||||||
Acquisition of GSK Brands | (662,800 | ) | — | |||||||
Net cash used in investing activities | (662,206 | ) | (275,680 | ) | ||||||
Financing Activities | ||||||||||
Proceeds from issuance of Senior Notes | 250,000 | 100,250 | ||||||||
Proceeds from issuance of 2012 Term Loan and 2010 Term Loan | 650,100 | 112,936 | ||||||||
Repayment of 2010 Term Loan | (242,000 | ) | — | |||||||
Payment of deferred financing costs | (33,284 | ) | (830 | ) | ||||||
Repayment of long-term debt | (25,000 | ) | (51,087 | ) | ||||||
Proceeds from exercise of stock options | 889 | 331 | ||||||||
Shares surrendered as payment of tax withholding | (271 | ) | (353 | ) | ||||||
Net cash provided by financing activities | 600,434 | 161,247 | ||||||||
Effects of exchange rate changes on cash and cash equivalents | 1 | — | ||||||||
Increase (decrease) in cash and cash equivalents | 5,681 | (27,763 | ) | |||||||
Cash and cash equivalents - beginning of year | 13,334 | 41,097 | ||||||||
Cash and cash equivalents - end of year | $ | 19,015 | $ | 13,334 | ||||||
Interest paid | $ | 34,977 | $ | 17,509 | ||||||
Income taxes paid | $ | 12,865 | $ | 11,894 | ||||||
Prestige Brands Holdings, Inc. Consolidated Statements of Operations Business Segments (Unaudited) |
|||||||||||||||
Three Months Ended March 31, 2012 | |||||||||||||||
OTC
Healthcare |
Household
Cleaning |
Consolidated | |||||||||||||
(In thousands) | |||||||||||||||
Net sales | $ | 109,570 | $ | 23,590 | $ | 133,160 | |||||||||
Other revenues | 167 | 669 | 836 | ||||||||||||
Total revenues | 109,737 | 24,259 | 133,996 | ||||||||||||
Cost of sales | 45,953 | 19,555 | 65,508 | ||||||||||||
Gross profit | 63,784 | 4,704 | 68,488 | ||||||||||||
Advertising and promotion | 17,149 | 1,398 | 18,547 | ||||||||||||
Contribution margin | $ | 46,635 | $ | 3,306 | 49,941 | ||||||||||
Other operating expenses | 27,385 | ||||||||||||||
Operating income | 22,556 | ||||||||||||||
Other expense | 21,756 | ||||||||||||||
Provision for income taxes | 815 | ||||||||||||||
Loss from continuing operations | (15 | ) | |||||||||||||
Income from discontinued operations, net of income tax | — | ||||||||||||||
Loss on sale of discontinued operations, net of income tax | — | ||||||||||||||
Net loss | $ | (15 | ) | ||||||||||||
Three Months Ended March 31, 2011 | |||||||||||||||
OTC
Healthcare |
Household
Cleaning |
Consolidated | |||||||||||||
(In thousands) | |||||||||||||||
Net sales | $ | 71,390 | $ | 24,239 | $ | 95,629 | |||||||||
Other revenues | 175 | 559 | 734 | ||||||||||||
Total revenues | 71,565 | 24,798 | 96,363 | ||||||||||||
Cost of sales | 33,233 | 16,825 | 50,058 | ||||||||||||
Gross profit | 38,332 | 7,973 | 46,305 | ||||||||||||
Advertising and promotion | 12,834 | 1,288 | 14,122 | ||||||||||||
Contribution margin | $ | 25,498 | $ | 6,685 | 32,183 | ||||||||||
Other operating expenses | 13,559 | ||||||||||||||
Operating income | 18,624 | ||||||||||||||
Other expense | 8,809 | ||||||||||||||
Provision for income taxes | 3,401 | ||||||||||||||
Income from continuing operations | 6,414 | ||||||||||||||
Income from discontinued operations, net of income tax | — | ||||||||||||||
Loss on sale of discontinued operations, net of income tax | — | ||||||||||||||
Net income | $ | 6,414 | |||||||||||||
Year Ended March 31, 2012 | |||||||||||||||
OTC
Healthcare |
Household
Cleaning |
Consolidated | |||||||||||||
(In thousands) | |||||||||||||||
Net sales | $ | 344,282 | $ | 93,556 | $ | 437,838 | |||||||||
Other revenues | 719 | 2,528 | 3,247 | ||||||||||||
Total revenues | 345,001 | 96,084 | 441,085 | ||||||||||||
Cost of sales | 143,151 | 70,550 | 213,701 | ||||||||||||
Gross profit | 201,850 | 25,534 | 227,384 | ||||||||||||
Advertising and promotion | 51,895 | 5,232 | 57,127 | ||||||||||||
Contribution margin | $ | 149,955 | $ | 20,302 | 170,257 | ||||||||||
Other operating expenses | 67,434 | ||||||||||||||
Operating income | 102,823 | ||||||||||||||
Other expense | 41,666 | ||||||||||||||
Provision for income taxes | 23,945 | ||||||||||||||
Income from continuing operations | 37,212 | ||||||||||||||
Income from discontinued operations, net of income tax | — | ||||||||||||||
Loss on sale of discontinued operations, net of income tax | — | ||||||||||||||
Net income | $ | 37,212 | |||||||||||||
Year Ended March 31, 2011 | |||||||||||||||
OTC
Healthcare |
Household
Cleaning |
Consolidated | |||||||||||||
(In thousands) | |||||||||||||||
Net sales | $ | 234,042 | $ | 99,673 | $ | 333,715 | |||||||||
Other revenues | 543 | 2,252 | 2,795 | ||||||||||||
Total revenues | 234,585 | 101,925 | 336,510 | ||||||||||||
Cost of sales | 97,710 | 67,922 | 165,632 | ||||||||||||
Gross profit | 136,875 | 34,003 | 170,878 | ||||||||||||
Advertising and promotion | 36,752 | 6,145 | 42,897 | ||||||||||||
Contribution margin | $ | 100,123 | $ | 27,858 | 127,981 | ||||||||||
Other operating expenses | 51,836 | ||||||||||||||
Operating income | 76,145 | ||||||||||||||
Other expense | 27,617 | ||||||||||||||
Provision for income taxes | 19,349 | ||||||||||||||
Income from continuing operations | 29,179 | ||||||||||||||
Income from discontinued operations, net of income tax | 591 | ||||||||||||||
Loss on sale of discontinued operations, net of income tax | (550 | ) | |||||||||||||
Net income | $ | 29,220 | |||||||||||||
About Non-GAAP Financial Measures
We define Non-GAAP EBITDA as earnings before interest expense (income), income taxes, depreciation and amortization, income or loss from discontinued operations or the sale thereof and Non-GAAP Adjusted EBITDA as earnings before interest expense (income), income taxes, depreciation and amortization, income or loss from discontinued operations and the sale thereof, gain on settlement, loss on extinguishment of debt, certain other legal and professional fees and acquisition-related costs. We define Non-GAAP Adjusted Income from Continuing Operations as Income from Continuing Operations before incremental interest expense to finance future acquisitions, gain on settlement, loss on extinguishment of debt, certain other legal and professional fees, acquisition-related costs, the applicable tax impacts associated with these items and the tax impacts of state tax rate adjustments and other non-deductible items. We define Non-GAAP Adjusted Net Income as Net Income before gain on settlement, loss on extinguishment of debt, certain other legal and professional fees, acquisition-related costs, income or loss from discontinued operations and the sale thereof, the applicable tax impacts associated with these items and the tax impacts of state tax rate adjustments and other non-deductible items. We define Non-GAAP Free Cash Flow as net cash provided by operating activities less cash paid for capital expenditures. Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted Net Income and Non-GAAP Free Cash Flow may not be comparable to similarly titled measures reported by other companies.
We are presenting Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted Income from Continuing Operations, Non-GAAP Adjusted Net Income and Non-GAAP Free Cash Flow 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 EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted Income from Continuing Operations, Non-GAAP Adjusted Net Income and Non-GAAP 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 our ability to pursue acquisitions or service or incur indebtedness; and (iii) we use Non-GAAP EBITDA/Non-GAAP Adjusted EBITDA and Non-GAAP Adjusted Net Income 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 EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted Income from Continuing Operations, Non-GAAP Adjusted Net Income and Non-GAAP Free Cash Flow has limitations and you should not consider these measures in isolation from or as an alternative to GAAP measures such as operating income, income from continuing operations, 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 EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted Income from Continuing Operations, Non-GAAP Adjusted Net Income and Non-GAAP Free Cash Flow, all of which are non-GAAP financial measures, to GAAP net income and GAAP Net cash provided by operating activities, respectively, our most directly comparable financial measures presented in accordance with GAAP.
Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA:
Three Months Ended March 31, | ||||||||||
2012 | 2011 | |||||||||
(In thousands) | ||||||||||
GAAP Net Income (Loss) | $ | (15 | ) | $ | 6,414 | |||||
Income from discontinued operations | — | — | ||||||||
Interest expense, net | 16,347 | 8,809 | ||||||||
Income tax provision | 815 | 3,401 | ||||||||
Depreciation and amortization | 3,051 | 2,540 | ||||||||
Non-GAAP EBITDA: | 20,198 | 21,164 | ||||||||
Adjustments: |
||||||||||
Inventory step-up charges associated with acquisitions | 1,795 | 3,729 | ||||||||
Legal and professional fees associated with acquisitions | 8,142 | 802 | ||||||||
Transition costs associated with GSK | 3,588 | — | ||||||||
Unsolicited proposal costs | 1,737 | — | ||||||||
Loss on extinguishment of debt | 5,409 | — | ||||||||
Total adjustments | 20,671 | 4,531 | ||||||||
Non-GAAP Adjusted EBITDA | $ | 40,869 | $ | 25,695 | ||||||
Year Ended March 31, | |||||||||||
2012 | 2011 | ||||||||||
(In thousands) | |||||||||||
GAAP Net Income | $ | 37,212 | $ | 29,220 | |||||||
Income from discontinued operations | — | (591 | ) | ||||||||
Loss on sale of discontinued operations | — | 550 | |||||||||
Interest expense, net | 41,320 | 27,317 | |||||||||
Income tax provision | 23,945 | 19,349 | |||||||||
Depreciation and amortization | 10,734 | 9,876 | |||||||||
Non-GAAP EBITDA: | 113,211 | 85,721 | |||||||||
Adjustments: |
|||||||||||
Inventory step-up charges associated with acquisitions | 1,795 | 7,273 | |||||||||
Legal and professional fees associated with acquisitions | 13,807 | 7,729 | |||||||||
Transition costs associated with GSK | 3,588 | — | |||||||||
Unsolicited proposal costs | 1,737 | — | |||||||||
Gain on settlement | (5,063 | ) | — | ||||||||
Loss on extinguishment of debt | 5,409 | 300 | |||||||||
Total adjustments | 21,273 | 15,302 | |||||||||
Non-GAAP Adjusted EBITDA | $ | 134,484 | $ | 101,023 | |||||||
Reconciliation of GAAP Income from Continuing Operations to Non-GAAP Adjusted Income from Continuing Operations:
Three Months Ended March 31, | |||||||||||
2012 | 2011 | ||||||||||
(In thousands) | |||||||||||
GAAP Income (Loss) from Continuing Operations | $ | (15 | ) | $ | 6,414 | ||||||
Adjustments: |
|||||||||||
Inventory step-up charges associated with acquisitions | 1,795 | 3,729 | |||||||||
Acquisition related costs | 8,142 | 802 | |||||||||
Transition costs associated with GSK | 3,588 | — | |||||||||
Unsolicited proposal costs | 1,737 | — | |||||||||
Loss on extinguishment of debt | 5,409 | — | |||||||||
Tax impact of adjustments | (7,816 | ) | (2,094 | ) | |||||||
Total adjustments | 12,855 | 2,437 | |||||||||
Non-GAAP Adjusted Income from Continuing Operations | $ | 12,840 | $ | 8,851 | |||||||
Year Ended March 31, | |||||||||||
2012 | 2011 | ||||||||||
(In thousands) | |||||||||||
GAAP Income from Continuing Operations | $ | 37,212 | $ | 29,179 | |||||||
Adjustments: |
|||||||||||
Incremental interest expense to finance Dramamine | — | 800 | |||||||||
Inventory step-up charges associated with acquisitions | 1,795 | 7,273 | |||||||||
Acquisition related costs | 13,807 | 7,729 | |||||||||
Transition costs associated with GSK | 3,588 | — | |||||||||
Unsolicited proposal costs | 1,737 | — | |||||||||
Gain on settlement | (5,063 | ) | — | ||||||||
Loss on extinguishment of debt | 5,409 | 300 | |||||||||
Tax impact of adjustments | (8,091 | ) | (5,213 | ) | |||||||
Tax impact of state rate adjustments and other non-deductible items | (237 | ) | — | ||||||||
Total adjustments | 12,945 | 10,889 | |||||||||
Non-GAAP Adjusted Income from Continuing Operations | $ | 50,157 | $ | 40,068 | |||||||
Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income and related Diluted Earnings Per Share:
Three Months Ended March 31, | |||||||||||||||||||
2012 | 2011 | ||||||||||||||||||
Diluted | Diluted | ||||||||||||||||||
2012 | EPS | 2011 | EPS | ||||||||||||||||
(In thousands) | |||||||||||||||||||
GAAP Net Income (Loss) | $ | (15 | ) | $ | — | $ | 6,414 | $ | 0.13 | ||||||||||
Adjustments: |
|||||||||||||||||||
Inventory step-up charge associated with acquisitions | 1,795 | 0.04 | 3,729 | 0.07 | |||||||||||||||
Legal and professional fees associated with acquisitions | 8,142 | 0.16 | 802 | 0.02 | |||||||||||||||
Transition costs associated with GSK | 3,588 | 0.07 | — | — | |||||||||||||||
Unsolicited proposal costs | 1,737 | 0.03 | — | — | |||||||||||||||
Loss on extinguishment of debt | 5,409 | 0.11 | — | — | |||||||||||||||
Tax impact of adjustments | (7,816 | ) | (0.15 | ) | (2,094 | ) | (0.04 | ) | |||||||||||
Total adjustments | 12,855 | 0.26 | 2,437 | 0.05 | |||||||||||||||
Non-GAAP Adjusted Net Income and Adjusted EPS | $ | 12,840 | $ | 0.26 | $ | 8,851 | $ | 0.18 | |||||||||||
Year Ended March 31, | |||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||
Diluted | Diluted | ||||||||||||||||||||
2012 | EPS | 2011 | EPS | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||
GAAP Net Income | $ | 37,212 | $ | 0.73 | $ | 29,220 | $ | 0.58 | |||||||||||||
Adjustments: |
|||||||||||||||||||||
Income from discontinued operations | — | — | (591 | ) | (0.01 | ) | |||||||||||||||
Loss on sale of discontinued operations | — | — | 550 | 0.01 | |||||||||||||||||
Incremental interest expense to finance Dramamine | — | — | 800 | 0.02 | |||||||||||||||||
Inventory step-up charge associated with acquisitions | 1,795 | 0.04 | 7,273 | 0.14 | |||||||||||||||||
Legal and professional fees associated with acquisitions | 13,807 | 0.27 | 7,729 | 0.15 | |||||||||||||||||
Transition costs associated with GSK | 3,588 | 0.07 | — | — | |||||||||||||||||
Unsolicited proposal costs | 1,737 | 0.03 | — | — | |||||||||||||||||
Gain on settlement | (5,063 | ) | (0.10 | ) | — | — | |||||||||||||||
Loss on extinguishment of debt | 5,409 | 0.11 | — | — | |||||||||||||||||
Tax impact of adjustments | (8,091 | ) | (0.16 | ) | (5,213 | ) | (0.10 | ) | |||||||||||||
Tax impact of state rate adjustments and other non-deductible items | (237 | ) | — | — | — | ||||||||||||||||
Total adjustments | 12,945 | 0.26 | 10,548 | 0.21 | |||||||||||||||||
Non-GAAP Adjusted Net Income and Adjusted EPS | $ | 50,157 | $ | 0.99 | $ | 39,768 | $ | 0.79 | |||||||||||||
Reconciliation of GAAP Net Cash Provided by Operating Activities to Non-GAAP Free Cash Flow:
Three Months Ended March 31, | |||||||||||||
2012 | 2011 | ||||||||||||
(In thousands) | |||||||||||||
GAAP Net cash provided by operating activities | $ | 19,459 | $ | 25,011 | |||||||||
Additions to property and equipment for cash | (248 | ) | (250 | ) | |||||||||
Non-GAAP Free Cash Flow | $ | 19,211 | $ | 24,761 | |||||||||
Year Ended March 31, | |||||||||||||
2012 | 2011 | ||||||||||||
(In thousands) | |||||||||||||
GAAP Net cash provided by operating activities | $ | 67,452 | $ | 86,670 | |||||||||
Additions to property and equipment for cash | (606 | ) | (655 | ) | |||||||||
Non-GAAP Free Cash Flow | $ | 66,846 | $ | 86,015 |
Source:
Prestige Brands Holdings, Inc.
Dean Siegal, 914-524-6819