Irinquiries@prestigebrands.com
Prestige Consumer Healthcare Inc.
660 White Plains Road – Ste 250
Tarrytown, NY 10591
Telephone: 914-524-6819
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of
Report (Date of earliest event reported): May 14,
2009
PRESTIGE
BRANDS HOLDINGS, INC.
(Exact
name of registrant as specified in its charter)
| Delaware | 001-32433 | 20-1297589 |
| (State or other jurisdiction | (Commission File Number) | (IRS Employer |
| of incorporation) | Identification No.) |
90 North Broadway,
Irvington, New York 10533
(Address
of principal executive offices, including Zip Code)
(914)
524-6810
(Registrant’s
telephone number, including area code)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
[ ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and
Financial Condition.
On May
14, 2009, Prestige Brands Holdings, Inc. (the “Registrant”) announced financial
results for the fiscal quarter and year ended March 31, 2009. A copy of
the press release announcing the Registrant’s earnings results for the fiscal
quarter and year ended March 31, 2009 is attached hereto as Exhibit 99.1 and
incorporated herein by reference.
The
information in this Form 8-K and Exhibit 99.1 attached hereto shall not be
deemed to be ‘‘filed’’ for purposes of Section 18 of the Securities Exchange Act
of 1934, as amended, or otherwise subject to the liabilities of that section,
unless the Registrant specifically states that the information is to be
considered “filed” under the Securities Exchange Act of 1934 or incorporates it
by reference into a filing under the Securities Act of 1933, as amended, or the
Securities Exchange Act of 1934.
Item
7.01. Regulation FD Disclosure.
The
information set forth in Item 2.02 above is incorporated by reference as if
fully set forth herein.
Item
9.01 Financial Statements and Exhibits.
|
|
(d) |
Exhibits.
|
|
Exhibit
|
Description
|
|
99.1
|
Press Release dated
May
14,
2009
announcing the Registrant’s
financial results for the fiscal quarter and year ended March 31,
2009
(furnished
only).
|
SIGNATURES
Pursuant to the requirements of the
Securities Exchange Act of 1934, the Registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly
authorized.
| Dated: May 14, 2009 | PRESTIGE BRANDS HOLDINGS, INC. | ||
|
|
By:
|
/s/ Peter J. Anderson | |
| Name: Peter J. Anderson | |||
| Title: Chief Financial Officer | |||
EXHIBIT
INDEX
|
Exhibit
|
Description
|
|
99.1
|
Press Release dated
May
14,
2009
announcing the Registrant’s
financial results for the fiscal quarter and year ended March 31,
2009
(furnished
only).
|
Exhibit 99.1
PRESTIGE
BRANDS HOLDINGS, INC. REPORTS FOURTH QUARTER AND FISCAL ’09 RESULTS
|
Ø
|
Fourth
quarter revenues were $70.9 million, 11.9% less than the prior year
comparable quarter revenues of $80.4 million; fiscal year 2009 revenues
were $312.7 million, 4.3% below the comparable period’s revenues of $326.6
million.
|
|
Ø
|
Fourth
quarter reported net loss includes an after-tax non-cash goodwill
impairment charge of $220.1
million.
|
|
Ø
|
Excluding
effects of the non-cash goodwill impairment charge, fourth quarter net
income would have been $9.0 million, or $0.18 per diluted
share.
|
|
Ø
|
Free
cash flow for the quarter was $13.2 million, an increase of 37.5% over the
same period last year; free cash flow for fiscal year 2009 increased 48.8%
over prior year to $66.2 million.
|
|
Ø
|
Excluding
the effects of the non-cash impairment charge, fiscal year 2009 net income
would have been $33.3 million, or $0.67 per diluted
share.
|
Irvington,
NY, May 14, 2009—Prestige Brands Holdings, Inc. (NYSE-PBH) today reported fourth
quarter fiscal year 2009 revenues of $70.9 million, 11.9% below the same period
a year ago reflecting the challenging macroeconomic environment and continuing
inventory reductions by retailers. Revenues declined for all three reporting
segments in the quarter.
The
Company reported a net loss for fourth quarter fiscal year 2009 of $211.1
million or $4.22 per diluted share. This includes the effects of a
non-cash, pre-tax impairment charge of $249.6 million to reduce the book value
of the Company’s goodwill and other intangible assets to their estimated fair
value. Excluding the effects of the impairment charge, net income for
the quarter would have been $9.0 million, a decrease of $1.4 million or 13.5%
from last year’s reported net income of $10.4 million, or $0.18 per
share.
The
reduction in net income, exclusive of the impairment charge, was primarily due
to the sales decline, partially offset by decreases in advertising and
promotion, general and administrative (G&A) and interest
expenses. The reduction in advertising and promotion expenses
resulted from declines in non-working media compared to the prior year
quarter. The G&A reduction was primarily due to a reduction in
bonus expense for the current year as the Company’s operating performance for
fiscal year 2009 resulted in no annual incentive payout. Interest
expense was significantly below the prior year due to a combination of the lower
debt outstanding and lower interest rates compared to fourth quarter of fiscal
year 2008.
Commenting
on the results, Mark Pettie, Chairman and CEO, said, “We faced a challenging
quarter and second half of fiscal 2009 as a result of the macroeconomic
headwinds and associated pull-backs in consumer spending and retailer inventory
reductions affecting each segment of our business. Despite these circumstances,
during the quarter we were able to use our strong cash flow to complete the
planned improvement in our liquidity position and resume our debt pay
down.”
Mr.
Pettie added, “Given the current external operating environment, we remain
cautious in our outlook for fiscal year 2010, and we project revenue performance
below our long term goal of 2-4%. However, we believe we are in a
good position to weather the economic challenges faced by our industry, and plan
to continue investing in our focus brands going forward.”
Results
by Segment for Fourth Fiscal Quarter
Over-the-Counter
Healthcare Products (OTC)
Net
revenues for the OTC segment of $39.8 million were $6.4 million or 13.9% below
the prior year comparable period. The sales declines resulted from
shortfalls on Chloraseptic®, Compound W®, Wartner®, Murine® ear, Dermoplast® and
The Doctor’s® brands. Partially offsetting these declines were
increases in sales of Little Remedies® and New Skin® as well as sales of the new
Chloraseptic® and Little Allergies® Allergen Block products.
Household
Products
The
household cleaning products segment reported net revenues of $26.7 million, $3.0
million, or 10.1% less than the prior year comparable
period. Revenues for the Spic and Span® brand were even with the
prior year period, while Comet® and Chore Boy® experienced sales
declines.
Personal
Care Products
Net
revenues of $4.3 million for the Personal Care products segment were $200
thousand less than the prior year comparable period. A sales increase
for Cutex® was offset by declines on the Denorex® and Prell® shampoo
brands.
Fiscal
Year 2009
The
Company reported total revenues of $312.7 million for the fiscal year ended
March 31, 2009, 4.3% less than fiscal 2008 total revenues of $326.6
million. The reported net loss for fiscal 2009 of $186.8 million
(($3.74) per diluted share) compared to net income of $33.9 million ($0.68 per
diluted share) for
-2-
fiscal
year 2008. Excluding the effects of the impairment charge, the
Company’s 2009 net income would have been $33.3 million, which was $0.6 million
or 1.8% below fiscal 2008 results. Excluding the effects of the
impairment charge, fully diluted earnings per share would have been $0.67 for
2009 compared to $0.68 in fiscal 2008.
Free
Cash Flow and Debt Repayment
Free cash
flow is a “non GAAP financial measure”. Free cash flow is presented here because
management believes this is a commonly used measure of liquidity, indicative of
cash available for debt repayment. 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, 2009 was $13.2
million, $3.6 million or 37.5% greater than free cash flow of $9.6 million
generated in the fourth quarter ended March 31, 2008. This is
composed of operating cash flow of $13.3 million less capital expenditures of
$0.1 million. The improvement in free cash flow resulted from an
improvement in working capital. For fiscal year 2009, free cash flow
totaled $66.2 million, composed of operating cash flow of $66.7 million minus
capital expenditures of $0.5 million. This compared to free cash flow
for 2008 of $44.5 million, composed of operating cash flow of $45.0 million less
capital expenditures of $0.5 million.
During
the fourth fiscal quarter, the Company reached its previously stated goal of
enhancing its liquidity position by using its free cash flow to accumulate a
reserve of approximately $30 million. After reaching this goal, the
Company resumed debt repayment. At March 31, 2009, the Company had
cash on hand of $35.2 million. At March 31, 2009, total indebtedness
was reduced to $378.3 million, reflecting $6.0 million of repayments during the
quarter.
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 866-362-4820 at least 15
minutes prior to the start of the call. To access the call from
outside North America, callers should dial 617-597-5345. 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 with North America, and at 617-801-6888 from
outside North America. The passcode is 46204340.
-3-
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 products, personal care and household
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, 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 outlook for Prestige Brands Holdings'
market and its focus brands as well as prospects for the industry. 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.
Contact:
Dean Siegal
914-524-6819
-4-
Prestige
Brands Holdings, Inc.
Consolidated
Statements of Operations
(Unaudited)
|
Three
Months Ended March 31
|
||||||||
|
(In
thousands, except per share data)
|
2009
|
2008
|
||||||
|
Revenues
|
||||||||
|
Net
sales
|
$ | 70,563 | $ | 80,096 | ||||
|
Other
revenues
|
289 | 337 | ||||||
|
Total
revenues
|
70,852 | 80,433 | ||||||
|
Cost
of Sales
|
||||||||
|
Cost
of sales
|
35,564 | 39,221 | ||||||
|
Gross
profit
|
35,288 | 41,212 | ||||||
|
Operating
Expenses
|
||||||||
|
Advertising
and promotion
|
5,714 | 6,290 | ||||||
|
General
and administrative
|
6,241 | 7,375 | ||||||
|
Depreciation
and amortization
|
2,946 | 2,754 | ||||||
|
Impairment
of goodwill and intangible assets
|
249,590 | -- | ||||||
|
Total
operating expenses
|
264,491 | 16,419 | ||||||
|
Operating
income (loss)
|
(229,203 | ) | 24,793 | |||||
|
Other
(income) expense
|
||||||||
|
Interest
income
|
-- | (151 | ) | |||||
|
Interest
expense
|
5,923 | 8,936 | ||||||
|
Miscellaneous
|
-- | (187 | ) | |||||
|
Total
other (income) expense
|
5,923 | 8,598 | ||||||
|
Income
(loss) before income taxes
|
(235,126 | ) | 16,195 | |||||
|
Provision
(benefit) for income taxes
|
(24,029 | ) | 5,844 | |||||
|
Net
income (loss)
|
$ | (211,097 | ) | $ | 10,351 | |||
|
Basic
earnings (loss) per share
|
$ | (4.22 | ) | $ | 0.21 | |||
|
Diluted
earnings (loss) per share
|
$ | (4.22 | ) | $ | 0.21 | |||
|
Weighted
average shares outstanding:
Basic
|
49,976 | 49,842 | ||||||
|
Diluted
|
49,976 | 50,037 | ||||||
-5-
Prestige
Brands Holdings, Inc.
Consolidated
Statements of Operations
(Unaudited)
|
Year
Ended March 31
|
||||||||||||
|
(In
thousands, except per share data)
|
2009
|
2008
|
2007
|
|||||||||
|
Revenues
|
||||||||||||
|
Net
sales
|
$ | 310,505 | $ | 324,621 | $ | 316,847 | ||||||
|
Other
revenues
|
2,210 | 1,982 | 1,787 | |||||||||
|
Total
revenues
|
312,715 | 326,603 | 318,634 | |||||||||
|
Cost
of Sales
|
||||||||||||
|
Cost
of sales
|
149,445 | 158,096 | 153,147 | |||||||||
|
Gross
profit
|
163,270 | 168,507 | 165,487 | |||||||||
|
Operating
Expenses
|
||||||||||||
|
Advertising
and promotion
|
38,099 | 34,665 | 32,005 | |||||||||
|
General
and administrative
|
31,888 | 31,414 | 28,416 | |||||||||
|
Depreciation
and amortization
|
11,219 | 11,014 | 10,384 | |||||||||
|
Impairment
of goodwill and intangible assets
|
249,590 | -- | -- | |||||||||
|
Total
operating expenses
|
330,796 | 77,093 | 70,805 | |||||||||
|
Operating
income (loss)
|
(167,526 | ) | 91,414 | 94,682 | ||||||||
|
Other
(income) expense
|
||||||||||||
|
Interest
income
|
(143 | ) | (675 | ) | (972 | ) | ||||||
|
Interest
expense
|
28,579 | 38,068 | 40,478 | |||||||||
|
Miscellaneous
|
-- | (187 | ) | -- | ||||||||
|
Total
other (income) expense
|
28,436 | 37,206 | 39,506 | |||||||||
|
Income
(loss) before income taxes
|
(195,962 | ) | 54,208 | 55,176 | ||||||||
|
Provision
(benefit) for income taxes
|
(9,186 | ) | 20,289 | 19,098 | ||||||||
|
Net
income (loss)
|
$ | (186,776 | ) | $ | 33,919 | $ | 36,078 | |||||
|
Basic
earnings (loss) per share
|
$ | (3.74 | ) | $ | 0.68 | $ | 0.73 | |||||
|
Diluted
earnings (loss) per share
|
$ | (3.74 | ) | $ | 0.68 | $ | 0.72 | |||||
|
Weighted
average shares outstanding:
Basic
|
49,935 | 49,751 | 49,460 | |||||||||
|
Diluted
|
49,935 | 50,039 | 50,020 | |||||||||
-6-
Prestige
Brands Holdings, Inc.
Consolidated
Balance Sheets
(Unaudited)
|
(In
thousands)
|
March
31
|
|||||||
|
Assets
|
2009
|
2008
|
||||||
|
Current
assets
|
||||||||
|
Cash
and cash equivalents
|
$ | 35,181 | $ | 6,078 | ||||
|
Accounts
receivable
|
36,025 | 44,219 | ||||||
|
Inventories
|
26,977 | 29,696 | ||||||
|
Deferred
income tax assets
|
4,022 | 3,066 | ||||||
|
Prepaid
expenses and other current assets
|
1,358 | 2,316 | ||||||
|
Total
current assets
|
103,563 | 85,375 | ||||||
|
Property
and equipment
|
1,367 | 1,433 | ||||||
|
Goodwill
|
114,240 | 308,915 | ||||||
|
Intangible
assets
|
577,593 | 646,683 | ||||||
|
Other
long-term assets
|
4,618 | 6,750 | ||||||
|
Total
Assets
|
$ | 801,381 | $ | 1,049,156 | ||||
|
Liabilities
and Stockholders’ Equity
|
||||||||
|
Current
liabilities
|
||||||||
|
Accounts
payable
|
$ | 18,050 | $ | 20,539 | ||||
|
Accrued
interest payable
|
5,371 | 5,772 | ||||||
|
Other
accrued liabilities
|
7,255 | 8,030 | ||||||
|
Current
portion of long-term debt
|
3,550 | 3,550 | ||||||
|
Total
current liabilities
|
34,226 | 37,891 | ||||||
|
Long-term
debt
|
374,787 | 407,675 | ||||||
|
Other
long-term liabilities
|
-- | 2,377 | ||||||
|
Deferred
income tax liabilities
|
97,983 | 122,140 | ||||||
|
Total
Liabilities
|
506,996 | 570,083 | ||||||
|
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 – 50,060 shares at March
31, 2009 and 2008
|
501 | 501 | ||||||
|
Additional
paid-in capital
|
382,803 | 380,364 | ||||||
|
Treasury
stock, at cost – 63 shares and 59 shares at
March
31, 2009 and 2008, respectively
|
(63 | ) | (47 | ) | ||||
|
Accumulated
other comprehensive income (loss)
|
(1,334 | ) | (999 | ) | ||||
|
Retained
earnings (deficit)
|
(87,522 | ) | 99,254 | |||||
|
Total
stockholders’ equity
|
294,385 | 479,073 | ||||||
|
Total
Liabilities and Stockholders’ Equity
|
$ | 801,381 | $ | 1,049,156 | ||||
-7-
Prestige
Brands Holdings, Inc.
Consolidated
Statements of Cash Flows
(Unaudited)
|
Year
Ended March 31
|
||||||||||||
|
2009
|
2008
|
2007
|
||||||||||
|
(In
thousands)
|
||||||||||||
|
Operating
Activities
|
||||||||||||
|
Net
income (loss)
|
$ | (186,776 | ) | $ | 33,919 | $ | 36,078 | |||||
|
Adjustments
to reconcile net income (loss) to
net
cash provided by operating activities:
|
||||||||||||
|
Depreciation
and amortization
|
11,219 | 11,014 | 10,384 | |||||||||
|
Amortization
of financing costs
|
2,233 | 3,007 | 3,257 | |||||||||
|
Impairment
of goodwill and intangible assets
|
249,590 | -- | -- | |||||||||
|
Deferred
income taxes
|
(19,955 | ) | 10,096 | 9,662 | ||||||||
|
Stock-based
compensation costs
|
2,439 | 1,139 | 655 | |||||||||
|
Changes
in operating assets and liabilities, net of effects
of
purchases of businesses
|
||||||||||||
|
Accounts
receivable
|
8,193 | (9,052 | ) | 4,875 | ||||||||
|
Inventories
|
2,719 | 477 | 4,292 | |||||||||
|
Prepaid
expenses and other assets
|
458 | (381 | ) | (1,235 | ) | |||||||
|
Accounts
payable
|
(2,265 | ) | (975 | ) | (186 | ) | ||||||
|
Other
accrued liabilities
|
(1,176 | ) | (4,255 | ) | 4,117 | |||||||
|
Net
cash provided by operating activities
|
66,679 | 44,989 | 71,899 | |||||||||
|
Investing
Activities
|
||||||||||||
|
Purchases
of equipment
|
(481 | ) | (488 | ) | (540 | ) | ||||||
|
Purchases
of intangible assets
|
-- | (33 | ) | -- | ||||||||
|
Business
acquisition purchase price adjustments
|
(4,191 | ) | (16 | ) | 750 | |||||||
|
Purchases
of businesses, net
|
-- | -- | (31,261 | ) | ||||||||
|
Net
cash used for investing activities
|
(4,672 | ) | (537 | ) | (31,051 | ) | ||||||
|
Financing
Activities
|
||||||||||||
|
Repayment
of notes
|
(32,888 | ) | (52,125 | ) | (35,280 | ) | ||||||
|
Redemption
of equity interests
|
(16 | ) | (7 | ) | (10 | ) | ||||||
|
Net
cash used for financing activities
|
(32,904 | ) | (52,132 | ) | (35,290 | ) | ||||||
|
Increase
(decrease) in cash
|
29,103 | (7,680 | ) | 5,558 | ||||||||
|
Cash
- beginning of year
|
6,078 | 13,758 | 8,200 | |||||||||
|
Cash
- end of year
|
$ | 35,181 | $ | 6,078 | $ | 13,758 | ||||||
-8-
Prestige
Brands Holdings, Inc.
Consolidating
Statement of Operations
(Unaudited)
|
Three
Months Ended March 31, 2009
|
||||||||||||||||
|
Over-the-
Counter
|
Household
|
Personal
|
||||||||||||||
|
(In
Thousands)
|
Healthcare
|
Cleaning
|
Care
|
Consolidated
|
||||||||||||
|
Net
sales
|
$ | 39,788 | $ | 26,451 | $ | 4,324 | $ | 70,563 | ||||||||
|
Other
revenues
|
4 | 264 | 21 | 289 | ||||||||||||
|
Total
revenues
|
39,792 | 26,715 | 4,345 | 70,852 | ||||||||||||
|
Cost
of sales
|
15,792 | 17,344 | 2,428 | 35,564 | ||||||||||||
|
Gross
profit
|
24,000 | 9,371 | 1,917 | 35,288 | ||||||||||||
|
Advertising
and promotion
|
4,545 | 1,030 | 139 | 5,714 | ||||||||||||
|
Contribution
margin
|
$ | 19,455 | $ | 8,341 | $ | 1,778 | 29,574 | |||||||||
|
Other
operating expenses
|
9,187 | |||||||||||||||
|
Impairment
of goodwill and intangible assets
|
249,590 | |||||||||||||||
|
Operating
loss
|
(229,203 | ) | ||||||||||||||
|
Other
expenses
|
5,923 | |||||||||||||||
|
Income
tax benefit
|
(24,029 | ) | ||||||||||||||
|
Net
loss
|
$ | (211,097 | ) | |||||||||||||
|
Three
Months Ended March 31, 2008
|
||||||||||||||||
|
Over-the-
Counter
|
Household
|
Personal
|
||||||||||||||
|
(In
Thousands)
|
Healthcare
|
Cleaning
|
Care
|
Consolidated
|
||||||||||||
|
Net
sales
|
$ | 46,197 | $ | 29,386 | $ | 4,513 | $ | 80,096 | ||||||||
|
Other
revenues
|
337 | -- | 337 | |||||||||||||
|
Total
revenues
|
46,197 | 29,723 | 4,513 | 80,433 | ||||||||||||
|
Cost
of sales
|
17,276 | 19,147 | 2,798 | 39,221 | ||||||||||||
|
Gross
profit
|
28,921 | 10,576 | 1,715 | 41,212 | ||||||||||||
|
Advertising
and promotion
|
5,108 | 1,009 | 173 | 6,290 | ||||||||||||
|
Contribution
margin
|
$ | 23,813 | $ | 9,567 | $ | 1,542 | 34,922 | |||||||||
|
Other
operating expenses
|
10,129 | |||||||||||||||
|
Operating
income
|
24,793 | |||||||||||||||
|
Other
expenses
|
8,598 | |||||||||||||||
|
Provision
for income taxes
|
5,844 | |||||||||||||||
|
Net
income
|
$ | 10,351 | ||||||||||||||
-9-
Prestige
Brands Holdings, Inc.
Consolidating
Statement of Operations
(Unaudited)
|
Year
Ended March 31, 2009
|
||||||||||||||||
|
Over-the-
Counter
|
Household
|
Personal
|
||||||||||||||
|
Healthcare
|
Cleaning
|
Care
|
Consolidated
|
|||||||||||||
|
(In
Thousands)
|
||||||||||||||||
|
Net
sales
|
$ | 176,878 | $ | 113,923 | $ | 19,704 | $ | 310,505 | ||||||||
|
Other
revenues
|
97 | 2,092 | 21 | 2,210 | ||||||||||||
|
Total
revenues
|
176,975 | 116,015 | 19,725 | 312,715 | ||||||||||||
|
Cost
of sales
|
63,459 | 74,457 | 11,529 | 149,445 | ||||||||||||
|
Gross
profit
|
113,516 | 41,558 | 8,196 | 163,270 | ||||||||||||
|
Advertising
and promotion
|
29,695 | 7,625 | 779 | 38,099 | ||||||||||||
|
Contribution
margin
|
$ | 83,821 | $ | 33,933 | $ | 7,417 | 125,171 | |||||||||
|
Other
operating expenses
|
43,107 | |||||||||||||||
|
Impairment
of goodwill and intangibles
|
249,590 | |||||||||||||||
|
Operating
loss
|
(167,526 | ) | ||||||||||||||
|
Other
expenses
|
28,436 | |||||||||||||||
|
Income
tax benefit
|
(9,186 | ) | ||||||||||||||
|
Net
loss
|
$ | (186,776 | ) | |||||||||||||
|
Year
Ended March 31, 2008
|
||||||||||||||||
|
Over-the-
Counter
|
Household
|
Personal
|
||||||||||||||
|
(In
Thousands)
|
Healthcare
|
Cleaning
|
Care
|
Consolidated
|
||||||||||||
|
Net
sales
|
$ | 183,641 | $ | 119,224 | $ | 21,756 | $ | 324,621 | ||||||||
|
Other
revenues
|
51 | 1,903 | 28 | 1,982 | ||||||||||||
|
Total
revenues
|
183,692 | 121,127 | 21,784 | 326,603 | ||||||||||||
|
Cost
of sales
|
69,344 | 75,459 | 13,293 | 158,096 | ||||||||||||
|
Gross
profit
|
114,348 | 45,668 | 8,491 | 168,507 | ||||||||||||
|
Advertising
and promotion
|
26,188 | 7,483 | 994 | 34,665 | ||||||||||||
|
Contribution
margin
|
$ | 88,160 | $ | 38,185 | $ | 7,497 | 133,842 | |||||||||
|
Other
operating expenses
|
42,428 | |||||||||||||||
|
Operating
income
|
91,414 | |||||||||||||||
|
Other
expenses
|
37,206 | |||||||||||||||
|
Provision
for income taxes
|
20,289 | |||||||||||||||
|
Net
income
|
$ | 33,919 | ||||||||||||||
-10-
Prestige
Brands Holdings, Inc.
Consolidating
Statement of Operations
(Unaudited)
|
Year
Ended March 31, 2007
|
||||||||||||||||
|
Over-the-
Counter
|
Household
|
Personal
|
||||||||||||||
|
(In
Thousands)
|
Healthcare
|
Cleaning
|
Care
|
Consolidated
|
||||||||||||
|
Net
sales
|
$ | 174,704 | $ | 117,249 | $ | 24,894 | $ | 316,847 | ||||||||
|
Other
revenues
|
-- | 1,787 | -- | 1,787 | ||||||||||||
|
Total
revenues
|
174,704 | 119,036 | 24,894 | 318,634 | ||||||||||||
|
Cost
of sales
|
65,601 | 73,002 | 14,544 | 153,147 | ||||||||||||
|
Gross
profit
|
109,103 | 46,034 | 10,350 | 165,487 | ||||||||||||
|
Advertising
and promotion
|
24,201 | 6,679 | 1,125 | 32,005 | ||||||||||||
|
Contribution
margin
|
$ | 84,902 | $ | 39,355 | $ | 9,225 | 133,482 | |||||||||
|
Other
operating expenses
|
38,800 | |||||||||||||||
|
Operating
income
|
94,682 | |||||||||||||||
|
Other
expenses
|
39,506 | |||||||||||||||
|
Provision
for income taxes
|
19,098 | |||||||||||||||
|
Net
income
|
$ | 36,078 | ||||||||||||||
-11-
Prestige
Brands Holdings, Inc.
Reconciliation
of Net Income to Net Income
Before
Impairment of Goodwill and Intangibles
(Unaudited)
|
Three
Months Ended March 31
|
Year
Ended March 31
|
|||||||||||||||
|
(In
Thousands)
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
|
Net
income (loss)
|
$ | (211,097 | ) | $ | 10,351 | $ | (186,776 | ) | $ | 33,919 | ||||||
|
Adjustments:
|
||||||||||||||||
|
Impairment
of goodwill and intangibles
|
249,590 | -- | 249,590 | -- | ||||||||||||
|
Income
tax benefit
|
(29,511 | ) | -- | (29,511 | ) | -- | ||||||||||
| 220,079 | -- | 220,079 | -- | |||||||||||||
|
Net
income before impairment of goodwill and intangibles
|
$ | 8,982 | $ | 10,351 | $ | 33,303 | $ | 33,919 | ||||||||
|
Basic
earnings per share on net income before impairment of goodwill and
intangibles
|
$ | 0.18 | $ | 0.21 | $ | 0.67 | $ | 0.68 | ||||||||
|
Diluted
earnings per share on net income before impairment of goodwill and
intangibles
|
$ | 0.18 | $ | 0.21 | $ | 0.67 | $ | 0.68 | ||||||||
|
Weighted
average shares outstanding:
|
||||||||||||||||
|
Basic
|
49,976 | 49,842 | 49,935 | 49,751 | ||||||||||||
|
Diluted
|
50,059 | 50,037 | 50,043 | 50,039 | ||||||||||||
-12-