Irinquiries@prestigebrands.com
Prestige Consumer Healthcare Inc.
660 White Plains Road – Ste 250
Tarrytown, NY 10591
Telephone: 914-524-6819
Delaware
(State
or Other Jurisdiction
of
Incorporation)
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001-32433
(Commission
File Number)
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20-1297589
(IRS
Employer Identification No.)
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¨
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Written
communications pursuant to Rule 425 under the Securities
Act.
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¨
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Soliciting
material pursuant to Rule 14a-12 under the Exchange
Act.
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¨
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Pre-commencement
communications pursuant to Rule 14d-2b under the Exchange
Act.
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¨
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange
Act.
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PRESTIGE
BRANDS HOLDINGS, INC.
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||
(Registrant)
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||
Date: February
9, 2011
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By:
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/s/ Ronald M.
Lombardi______
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Name: Ronald
M. Lombardi
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Title: Chief
Financial Officer
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Exhibit Number
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Description
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99.1
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Press Release dated
February
9,
2011
announcing the Company’s financial results for
the fiscal quarter and nine months
ended
December
31, 2010 (furnished
only).
|
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99.2
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Investor
Relations Slideshow in use beginning February 9, 2011 (furnished
only).
|
Three
Months Ended December 31
|
Nine
Months Ended December 31
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|||||||||||||||
(In
thousands, except per share data)
|
2010
|
2009
|
2010
|
2009
|
||||||||||||
Revenues
|
||||||||||||||||
Net
sales
|
$
|
90,077
|
$
|
73,372
|
$
|
238,086
|
$
|
221,178
|
||||||||
Other
revenues
|
531
|
446
|
2,061
|
1,483
|
||||||||||||
Total
revenues
|
90,608
|
73,818
|
240,147
|
222,661
|
||||||||||||
Cost
of Sales
|
||||||||||||||||
Cost
of sales (exclusive of depreciation shown below)
|
46,596
|
34,647
|
115,574
|
104,174
|
||||||||||||
Gross
profit
|
44,012
|
39,171
|
124,573
|
118,487
|
||||||||||||
Operating
Expenses
|
||||||||||||||||
Advertising
and promotion
|
13,049
|
6,037
|
28,775
|
24,379
|
||||||||||||
General
and administrative
|
15,426
|
7,411
|
30,941
|
26,087
|
||||||||||||
Depreciation
and amortization
|
2,513
|
2,458
|
7,336
|
7,368
|
||||||||||||
Total
operating expenses
|
30,988
|
15,906
|
67,052
|
57,834
|
||||||||||||
Operating
income
|
13,024
|
23,265
|
57,521
|
60,653
|
||||||||||||
Other
expense
|
||||||||||||||||
Interest
expense, net
|
7,674
|
5,558
|
18,508
|
16,853
|
||||||||||||
Loss
on extinguishment of debt
|
—
|
—
|
300
|
—
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||||||||||||
Total
other expense
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7,674
|
5,558
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18,808
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16,853
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||||||||||||
Income
from continuing operations before income taxes
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5,350
|
17,707
|
38,713
|
43,800
|
||||||||||||
Provision
for income taxes
|
3,204
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7,642
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15,948
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17,531
|
||||||||||||
Income
from continuing operations
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2,146
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10,065
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22,765
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26,269
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||||||||||||
Discontinued
Operations
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||||||||||||||||
Income
from discontinued operations, net of income tax
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32
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358
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591
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2,402
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||||||||||||
Gain/(Loss)
on sale of discontinued operations, net of income
tax/(benefit)
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—
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157
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(550
|
)
|
157
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|||||||||||
Net
income
|
$
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2,178
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$
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10,580
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$
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22,806
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$
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28,828
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||||||||
Basic
earnings per share:
|
||||||||||||||||
Income
from continuing operations
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$
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0.04
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$
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0.20
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$
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0.46
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$
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0.53
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||||||||
Net
income
|
$
|
0.04
|
$
|
0.21
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$
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0.46
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$
|
0.58
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||||||||
Diluted
earnings per share:
|
||||||||||||||||
Income
from continuing operations
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$
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0.04
|
$
|
0.20
|
$
|
0.45
|
$
|
0.53
|
||||||||
Net
income
|
$
|
0.04
|
$
|
0.21
|
$
|
0.45
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$
|
0.58
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||||||||
Weighted
average shares outstanding:
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||||||||||||||||
Basic
|
50,085
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50,030
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50,059
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50,008
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||||||||||||
Diluted
|
50,533
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50,074
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50,260
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50,078
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(In
thousands)
Assets
|
December 31,
2010
|
March 31,
2010
|
||||||
Current
assets
|
||||||||
Cash
and cash equivalents
|
$ | 83,266 | $ | 41,097 | ||||
Accounts
receivable
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41,981 | 30,621 | ||||||
Inventories
|
47,907 | 27,676 | ||||||
Deferred
income tax assets
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4,700 | 6,353 | ||||||
Prepaid
expenses and other current assets
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1,800 | 4,917 | ||||||
Current
assets of discontinued operations
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— | 1,486 | ||||||
Total
current assets
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179,654 | 112,150 | ||||||
Property
and equipment
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1,406 | 1,396 | ||||||
Goodwill
|
153,199 | 111,489 | ||||||
Intangible
assets
|
712,860 | 554,359 | ||||||
Other
long-term assets
|
6,729 | 7,148 | ||||||
Long-term
assets of discontinued operations
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— | 4,870 | ||||||
Total
Assets
|
$ | 1,053,848 | $ | 791,412 | ||||
Liabilities
and Stockholders' Equity
|
||||||||
Current
liabilities
|
||||||||
Accounts
payable
|
$ | 18,682 | $ | 12,771 | ||||
Accrued
interest payable
|
5,156 | 1,561 | ||||||
Other
accrued liabilities
|
20,589 | 11,733 | ||||||
Current
portion of long-term debt
|
659 | 29,587 | ||||||
Total
current liabilities
|
45,086 | 55,652 | ||||||
Long-term
debt
|
||||||||
Principal
amount
|
508,841 | 298,500 | ||||||
Less
unamortized discount
|
(5,277 | ) | (3,943 | ) | ||||
Long-term
debt, net of unamortized discount
|
503,564 | 294,557 | ||||||
Deferred
income tax liabilities
|
150,696 | 112,144 | ||||||
Total
Liabilities
|
699,346 | 462,353 | ||||||
Stockholders'
Equity
|
||||||||
Preferred
stock - $0.01 par value
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||||||||
Authorized
- 5,000 shares
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||||||||
Issued
and outstanding - None
|
— | — | ||||||
Common
stock - $0.01 par value
|
||||||||
Authorized
- 250,000 shares
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||||||||
Issued
- 50,229 shares at December 31, 2010 and 50,154 shares at March 31,
2010
|
502 | 502 | ||||||
Additional
paid-in capital
|
386,928 | 384,027 | ||||||
Treasury
stock, at cost - 148 shares at December 31, 2010 and 124 shares at March
31, 2010
|
(327 | ) | (63 | ) | ||||
Accumulated
deficit
|
(32,601 | ) | (55,407 | ) | ||||
Total
Stockholders' Equity
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354,502 | 329,059 | ||||||
Total
Liabilities and Stockholders' Equity
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$ | 1,053,848 | $ | 791,412 |
Nine
Months Ended December 31
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||||||||
(In
thousands)
|
2010
|
2009
|
||||||
Operating
Activities
|
||||||||
Net
income
|
$ | 22,806 | $ | 28,828 | ||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Depreciation
and amortization
|
7,565 | 8,679 | ||||||
Loss
(Gain) on sale of discontinued operations
|
890 | (253 | ) | |||||
Deferred
income taxes
|
5,591 | 10,254 | ||||||
Amortization
of deferred financing costs
|
767 | 1,432 | ||||||
Stock-based
compensation costs
|
2,751 | 1,658 | ||||||
Loss
on extinguishment of debt
|
300 | — | ||||||
Amortization
of debt discount
|
480 | — | ||||||
Loss
on disposition of equipment
|
131 | — | ||||||
Changes
in operating assets and liabilities
|
||||||||
Accounts
receivable
|
7,330 | 6,407 | ||||||
Inventories
|
2,814 | (6,958 | ) | |||||
Inventories
held for sale
|
1,114 | (1,323 | ) | |||||
Prepaid
expenses and other current assets
|
3,166 | (664 | ) | |||||
Accounts
payable
|
(1,054 | ) | 1,006 | |||||
Accrued
liabilities
|
7,008 | 1,424 | ||||||
Net
cash provided by operating activities
|
61,659 | 50,490 | ||||||
Investing
Activities
|
||||||||
Purchases
of equipment
|
(405 | ) | (402 | ) | ||||
Proceeds
from sale of discontinued operations
|
4,122 | 7,993 | ||||||
Acquisition
of Blacksmith, net of cash acquired
|
(202,044 | ) | — | |||||
Net
cash (used for) provided by investing activities
|
(198,327 | ) | 7,591 | |||||
Financing
Activities
|
||||||||
Proceeds
from issuance of Senior Notes
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100,250 | — | ||||||
Proceeds
from issuance of Senior Term Loan
|
112,936 | — | ||||||
Payment
of deferred financing costs
|
(648 | — | ||||||
Repayment
of long-term debt
|
(33,587 | ) | (59,000 | ) | ||||
Proceeds
from exercise of stock options
|
150 | — | ||||||
Purchase
of treasury stock
|
(264 | ) | — | |||||
Net
cash provided by (used for) financing activities
|
178,837 | (59,000 | ) | |||||
Increase
(decrease) in cash
|
42,169 | (919 | ) | |||||
Cash
- beginning of period
|
41,097 | 35,181 | ||||||
Cash
- end of period
|
$ | 83,266 | $ | 34,262 | ||||
Interest
paid
|
$ | 13,354 | $ | 18,345 | ||||
Income
taxes paid
|
$ | 4,096 | $ | 9,820 |
For
the Three Months Ended December 31, 2010
|
||||||||||||
Over-the-
Counter
Healthcare
|
Household
Cleaning
|
Consolidated
|
||||||||||
(In
thousands)
|
||||||||||||
Net
sales
|
$ | 67,287 | $ | 22,790 | $ | 90,077 | ||||||
Other
revenues
|
173 | 358 | 531 | |||||||||
Total
revenues
|
67,460 | 23,148 | 90,608 | |||||||||
Cost
of sales
|
30,827 | 15,769 | 46,596 | |||||||||
Gross
profit
|
36,633 | 7,379 | 44,012 | |||||||||
Advertising
and promotion
|
11,842 | 1,207 | 13,049 | |||||||||
Contribution
margin
|
$ | 24,791 | $ | 6,172 | 30,963 | |||||||
Other
operating expenses
|
17,939 | |||||||||||
Operating
income
|
13,024 | |||||||||||
Other
expense
|
7,674 | |||||||||||
Provision
for income taxes
|
3,204 | |||||||||||
Income
from continuing operations
|
2,146 | |||||||||||
Income
from discontinued operations, net of income tax
|
32 | |||||||||||
Net
income
|
$ | 2,178 |
For
the Nine Months Ended December 31, 2010
|
||||||||||||
Over-the-
Counter
Healthcare
|
Household
Cleaning
|
Consolidated
|
||||||||||
(In
thousands)
|
||||||||||||
Net
sales
|
$ | 162,652 | $ | 75,434 | $ | 238,086 | ||||||
Other
revenues
|
368 | 1,693 | 2,061 | |||||||||
Total
revenues
|
163,020 | 77,127 | 240,147 | |||||||||
Cost
of sales
|
64,477 | 51,097 | 115,574 | |||||||||
Gross
profit
|
98,543 | 26,030 | 124,573 | |||||||||
Advertising
and promotion
|
23,918 | 4,857 | 28,775 | |||||||||
Contribution
margin
|
$ | 74,625 | $ | 21,173 | 95,798 | |||||||
Other
operating expenses
|
38,277 | |||||||||||
Operating
income
|
57,521 | |||||||||||
Other
expense
|
18,808 | |||||||||||
Provision
for income taxes
|
15,948 | |||||||||||
Income
from continuing operations
|
22,765 | |||||||||||
Income
from discontinued operations, net of income tax
|
591 | |||||||||||
Loss
on sale of discontinued operations, net of income tax
benefit
|
(550 | ) | ||||||||||
Net
income
|
$ | 22,806 |
For
the Three Months Ended December 31, 2009
|
||||||||||||
Over-the-
Counter
Healthcare
|
Household
Cleaning
|
Consolidated
|
||||||||||
(In
thousands)
|
||||||||||||
Net
sales
|
$ | 46,544 | $ | 26,828 | $ | 73,372 | ||||||
Other
revenues
|
9 | 437 | 446 | |||||||||
Total
revenues
|
46,553 | 27,265 | 73,818 | |||||||||
Cost
of sales
|
17,166 | 17,481 | 34,647 | |||||||||
Gross
profit
|
29,387 | 9,784 | 39,171 | |||||||||
Advertising
and promotion
|
5,160 | 877 | 6,037 | |||||||||
Contribution
margin
|
$ | 24,227 | $ | 8,907 | 33,134 | |||||||
Other
operating expenses
|
9,869 | |||||||||||
Operating
income
|
23,265 | |||||||||||
Other
expense
|
5,558 | |||||||||||
Provision
for income taxes
|
7,642 | |||||||||||
Income
from continuing operations
|
10,065 | |||||||||||
Income
from discontinued operations, net of income tax
|
358 | |||||||||||
Gain
on sale of discontinued operations, net of income tax
|
157 | |||||||||||
Net
income
|
$ | 10,580 |
For
the Nine Months Ended December 31, 2009
|
||||||||||||
Over-the-
Counter
Healthcare
|
Household
Cleaning
|
Consolidated
|
||||||||||
(In
thousands)
|
||||||||||||
Net
sales
|
$ | 138,907 | $ | 82,271 | $ | 221,178 | ||||||
Other
revenues
|
29 | 1,454 | 1,483 | |||||||||
Total
revenues
|
138,936 | 83,725 | 222,661 | |||||||||
Cost
of sales
|
50,409 | 53,765 | 104,174 | |||||||||
Gross
profit
|
88,527 | 29,960 | 118,487 | |||||||||
Advertising
and promotion
|
19,299 | 5,080 | 24,379 | |||||||||
Contribution
margin
|
$ | 69,228 | $ | 24,880 | 94,108 | |||||||
Other
operating expenses
|
33,455 | |||||||||||
Operating
income
|
60,653 | |||||||||||
Other
expense
|
16,853 | |||||||||||
Provision
for income taxes
|
17,531 | |||||||||||
Income
from continuing operations
|
26,269 | |||||||||||
Income
from discontinued operations, net of income tax
|
2,402 | |||||||||||
Gain
on sale of discontinued operations, net of income tax
|
157 | |||||||||||
Net
income
|
$ | 28,828 |