Document
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): August 4, 2016
PRESTIGE BRANDS HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
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| | | | |
Delaware | | 001-32433 | | 20-1297589 |
(State or other jurisdiction of incorporation) | | (Commission File Number) | | (IRS Employer Identification No.) |
660 White Plains Road, Tarrytown, New York 10591
(Address of principal executive offices) (Zip Code)
(914) 524-6800
(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 (see General Instruction A.2. below):
[ ] 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 August 4, 2016, Prestige Brands Holdings, Inc. (the “Company”) announced financial results for the fiscal quarter ended June 30, 2016. A copy of the press release announcing the Company's earnings results for the fiscal quarter ended June 30, 2016 is attached hereto as Exhibit 99.1 and incorporated herein by reference.
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.
On August 4, 2016, representatives of the Company began making presentations to investors regarding the Company's financial results for the quarter ended June 30, 2016 using slides attached to this Current Report on Form 8-K as Exhibit 99.2 (the “Investor Presentation”) and incorporated herein by reference. The Company expects to use the Investor Presentation, in whole or in part, and possibly with modifications, in connection with presentations to investors, analysts and others during the fiscal year ended March 31, 2017.
By filing this Current Report on Form 8-K and furnishing the information contained herein, the Company makes no admission as to the materiality of any information in this report that is required to be disclosed solely by reason of Regulation FD.
The information contained in the Investor Presentation is summary information that is intended to be considered in the context of the Company's Securities and Exchange Commission (“SEC”) filings and other public announcements that the Company may make, by press release or otherwise, from time to time. The Company undertakes no duty or obligation to publicly update or revise the information contained in this report, although it may do so from time to time as its management believes is warranted. Any such updating may be made through the filing of other reports or documents with the SEC, through press releases or through other public disclosure.
The information presented in Items 2.02 and 7.01 of this Current Report on Form 8-K and Exhibits 99.1 and 99.2 shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, unless the Company specifically states that the information is to be considered “filed” under the Exchange Act or specifically incorporates it by reference into a filing under the Securities Act of 1933, as amended, or the Exchange Act.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
See Exhibit Index immediately following the signature page.
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.
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Dated: August 4, 2016 | PRESTIGE BRANDS HOLDINGS, INC. | |
| | | |
| By: | /s/ David S. Marberger | |
| | David S. Marberger | |
| | Chief Financial Officer | |
| | | |
| | | |
EXHIBIT INDEX
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| | |
Exhibit | | Description |
| | |
99.1 | | Press Release dated August 4, 2016 announcing the Company's financial results for the fiscal quarter ended June 30, 2016 (furnished only). |
99.2 | | Investor Presentation in use beginning August 4, 2016 (furnished only). |
Exhibit
Exhibit 99.1
Prestige Brands Holdings, Inc. Reports First Quarter Fiscal 2017
Revenues Up 9.1% to $209.6 Million
Tarrytown, NY-(Business Wire)--August 4, 2016--Prestige Brands Holdings, Inc. (NYSE-PBH) today announced results for the first quarter of fiscal year 2017, which ended June 30, 2016.
Key first fiscal quarter highlights include:
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• | Reported revenues increased 9.1% to $209.6 million; |
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• | Net cash provided by operating activities totaled $50.8 million; |
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• | Integration of DenTek® acquisition is complete; focus on brand-building continues; |
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• | Entered into an agreement to divest three non-core brands for $40.0 million plus inventory and completed the transaction on July 7, 2016. |
“We are very pleased with the Company’s first quarter financial results,” said Ron Lombardi, President and CEO. “With this quarter’s strong momentum across many of our key North American and International brands and the addition of revenues from DenTek, we believe we are well-positioned to meet our objectives for the full fiscal year.”
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 $40 million in cash. These strategic moves enabled us to continue driving our portfolio mix toward our stated long-term objective of 85% in invest for growth brands and 15% in manage for cash brands.”
First Fiscal Quarter Ended June 30, 2016
Reported revenues for the first quarter of fiscal 2017 were $209.6 million, an increase of 9.1% over the prior year comparable quarter’s revenues of $192.1 million. These results reflect strong consumption levels across the Company’s invest for growth brands, which include core over-the-counter (OTC) healthcare brands and our international business, as well as revenues from a full quarter of ownership of DenTek.
Reported net loss for the first quarter of fiscal 2017 totaled $5.5 million, or $0.10 per share. This included a non-cash after tax charge of $35.5 million (net of a tax benefit of $19.9 million) related to the divestiture of three non-core brands. Adjusted net income for the first quarter of fiscal 2017 was $31.4 million, or $0.59 per share, an increase of 14.7% over the prior year comparable period's adjusted net income of $27.4 million, or $0.52 per diluted share.
Free Cash Flow & Balance Sheet
The Company's Net cash provided by operating activities was $50.8 million, while the Non-GAAP Adjusted Free Cash Flow for the first quarter ended June 30, 2016 was $50.2 million compared to the prior year comparable quarter’s Net cash provided by operating activities of $43.5 million and Non-GAAP Adjusted Free Cash Flow of $42.7 million, an increase of 16.6% and 17.4%, respectively.
The Company's net debt at June 30, 2016 was $1.6 billion, reflecting debt repayments of $50.0 million during the first fiscal quarter. Proceeds from the divestiture of three non-core brands in July 2016 will be applied to debt repayments in the fiscal second quarter. At June 30, 2016, the Company's covenant-defined leverage ratio was approximately 4.8.
Segment Review
Reported revenues for the North American OTC Healthcare segment were $172.1 million for the first quarter of fiscal 2017, 10.6% higher than the prior year comparable quarter's revenues of $155.6 million. Reported revenues for the International OTC Healthcare segment for the first quarter of fiscal 2017 were $15.8 million, 11.0% higher than the $14.2 million reported in the prior year comparable period. Revenues for both the North American OTC Healthcare segment and the International OTC Healthcare segment were impacted by increased consumption levels as well as revenues from DenTek for three months. Reported revenues for the Household Cleaning segment were $21.7 million for the first quarter of fiscal 2017, a decrease of 2.6% over the prior year comparable quarter's revenues of $22.3 million.
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 $17.0 million to reflect the impact of the sale of the three brands. Our outlook for revenue growth is now in the range of 4.0% to 6.0% for the fiscal year, including the impact of currency fluctuations. We do not anticipate any impact from the sale on our previously provided outlook for adjusted earnings per share for
the fiscal year, which continues to be in the range of $2.30 to $2.36. Our previously provided outlook for adjusted free cash flow of $185 million also remains unchanged,” Mr. Lombardi said.
Q1 Conference Call & Accompanying Slide Presentation
The Company will host a conference call to review its first quarter results on August 4, 2016 at 8:30 am EDT. The toll-free dial-in numbers are 877-784-9650 within North America and 530-379-4717 outside of North America. The conference ID is 43058034. The Company will provide a live Internet webcast, a slide presentation to accompany the call, as well as an archived replay, all of which can be accessed from the Investor Relations page of the Company's website at http://prestigebrands.com. The slide presentation can be accessed just before the call from the Investor Relations page of the website by clicking on Webcasts and Presentations. Telephonic replays will be available for two weeks following the completion of the call and can be accessed at 855-859-2056 within North America and at 404-537-3406 from outside North America. The conference ID is 43058034.
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 Prestige Brands Holdings, Inc.
The Company markets and distributes brand name over-the-counter and household cleaning products throughout the U.S and Canada, Australia and in certain other international markets. The Company’s brands include Monistat® women’s health products, Nix® lice treatment, Chloraseptic® sore throat treatments, Clear Eyes® eye care products, Compound W® wart treatments, The Doctor's® NightGuard® dental protector, Little Remedies® pediatric products, Efferdent® denture care products, Luden's® throat drops, Dramamine® motion sickness treatment, BC® and Goody's® pain relievers, Beano® gas prevention, Debrox® earwax remover, and Gaviscon® antacid in Canada. Visit the Company's website at www.prestigebrands.com.
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 March 31, 2016 and other periodic reports filed with the Securities and Exchange Commission.
Company Contact: Dean Siegal
914-524-6819
Prestige Brands Holdings, Inc.
Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
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| | | | | | | |
| Three Months Ended June 30, |
(In thousands, except per share data) | 2016 | | 2015 |
Revenues | | | |
Net sales | $ | 208,770 |
| | $ | 191,287 |
|
Other revenues | 805 |
| | 845 |
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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 |
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| | | |
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 |
| | — |
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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 |
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(Loss) income before income taxes | (8,913 | ) | | 40,170 |
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(Benefit) provision for income taxes | (3,382 | ) | | 13,997 |
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Net (loss) income | $ | (5,531 | ) | | $ | 26,173 |
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| | | |
(Loss) earnings per share: | |
| | |
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Basic | $ | (0.10 | ) | | $ | 0.50 |
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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 |
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Prestige Brands Holdings, Inc.
Consolidated Balance Sheets
(Unaudited)
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| | | | | | | |
(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 |
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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 |
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| | | |
Deferred income tax liabilities | 460,557 |
| | 469,622 |
|
Other long-term liabilities | 2,847 |
| | 2,840 |
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Total Liabilities | 2,140,959 |
| | 2,204,455 |
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| | | |
Stockholders' Equity | |
| | |
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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 | |
| | |
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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 |
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Prestige Brands Holdings, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
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| | | | | | | |
| 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 |
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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 |
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| | | |
Investing Activities | |
| | |
|
Purchases of property and equipment | (895 | ) | | (780 | ) |
Proceeds from the sale of property and equipment | — |
| | 344 |
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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 |
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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 |
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Cash and cash equivalents - end of period | $ | 28,877 |
| | $ | 21,598 |
|
| | | |
Interest paid | $ | 18,337 |
| | $ | 22,444 |
|
Income taxes paid | $ | 1,357 |
| | $ | 1,914 |
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Prestige Brands Holdings, Inc.
Consolidated Statements of Operations
Business Segments
(Unaudited)
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| | | | | | | | | | | | | | | |
| Three Months Ended June 30, 2016 |
(In thousands) | North American OTC Healthcare | | International OTC Healthcare | | Household Cleaning | | 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 $55.5 million recognized for assets held for sale related to Pediacare, New Skin and Fiber Choice. These assets and corresponding contribution margin are included within the North American OTC Healthcare segment.
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| | | | | | | | | | | | | | | |
| Three Months Ended June 30, 2015 |
(In thousands) | North American OTC Healthcare | | International OTC Healthcare | | Household Cleaning | | 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 International OTC Healthcare segment and the North American OTC Healthcare segment. There were no changes to the consolidated financial statements for any periods presented.
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 Adjusted EPS | | 2015 | 2015 Adjusted EPS |
(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 cash provided by operating activities as shown in the Statement of Cash Flows | 56,796 |
| | 22,856 |
|
Changes in operating assets and liabilities, net of effects from acquisitions as shown in the Statement of Cash Flows | (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 associated with acquisitions and divestitures | 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 Projected Free Cash Flow |
(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 |
|
exhibit992prestigebrands
Exhibit 99.1
This presentation contains certain “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, such
as statements regarding the Company’s expected financial performance, including revenue growth, adjusted EPS, and adjusted free cash flow,
expansion of market share for the Company’s Invest for Growth brands, the Company’s investment in digital, product development and
marketing initiatives, the impact of and expected use of proceeds from recent brand divestitures, and the Company’s ability to de-lever and
increase M&A capacity. Words such as "continue," "will," “expect,” “project,” “anticipate,” “likely,” “estimate,” “may,” “should,” “could,” “would,” and
similar expressions identify forward-looking statements. Such forward-looking statements represent the Company’s expectations and beliefs and
involve a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those
expressed or implied by such forward-looking statements. These factors include, among others, general economic and business conditions,
regulatory matters, competitive pressures, the impact of the Company’s digital, product development and marketing initiatives, supplier issues,
unexpected costs, and other risks set forth in Part I, Item 1A. Risk Factors in the Company’s Annual Report on Form 10-K for the year ended March
31, 2016. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date this presentation.
Except to the extent required by applicable law, the Company undertakes no obligation to update any forward-looking statement contained in
this presentation, whether as a result of new information, future events, or otherwise.
All adjusted GAAP numbers presented are reconciled to their closest GAAP measurement in the attached reconciliation schedule and in our
earnings release in the “About Non-GAAP Financial Measures” section.
Agenda for Today's Discussion
I. Performance Highlights
II. Financial Oueruiew
Ill. FY 17 Outloo� and the Road Ahead
First Qu arter FY 17 Results 3
I. Performance Highlights
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Invest for Growth portfolio is comprised of Core OTC brands and International.*
Q1 consolidated Revenue of $209.6 million, up 9.1% versus PY Q1
— Organic growth of approximately +1%(1) on a constant currency basis, following a strong Q4
— Revenue growth of +4.4% for Invest for Growth* portfolio on a constant currency basis(1)
— DenTek contributed $16.6 million of Revenue during the quarter
Consistent and innovative marketing supports long-term growth of Invest for Growth brands
— New product introductions driving growth of Invest for Growth brands
— Strategy of focusing A&P behind Invest for Growth portfolio
Gross Margin of 58.0% in line with PY Q1
Adjusted EPS of $0.59(2), up 13.5% versus the PY Q1
Strong Adjusted Free Cash Flow of $50.2(2) million, exceeding the PY Q1 of $42.7 million
— Leverage of 4.8x(3)
DenTek integration completed
— Focus on enhancing and executing marketing plans
Divested three brands from Manage for Cash portfolio, which consists of non-core OTC and Household Cleaning
— Meaningful progress toward goal of 85% of Revenue from Invest for Growth brands
Invest for Growth portfolio is comprised of Core OTC brands and International.*
Source: Data reflects retail dollar sales percentage growth versus prior period for consumption growth and organic revenue growth.
FY 15 and FY 16 data shown as previously presented for Core OTC.
Q1 FY 17 data for Invest for Growth portfolio comprised of Core OTC brands and International. Core OTC brands reflect: Monistat (after Q2 FY 16), BC/Goody’s, Clear Eyes, Dramamine, Debrox, Chloraseptic, Luden’s, Little Remedies,
Compound W, Nix (after Q2 FY 16), Beano, Efferdent and The Doctor’s IRI multi-outlet + C-Store retail dollar sales for relevant period. International includes Canadian consumption for leading retailers, and Australia/ROW shipment data as
a proxy for consumption.
FY 15
>2x Category
Growth
4.1%
8.3%
3.3%
3.5%
5.9%
4.4%
FY 16
Q1
FY 17 *
*
Canada’s #1 Selling heartburn relief
brand; long-lasting relief
Retail & Club Store
Displays
Begins working immediately;
Acid-shielding foam barrier neutralizes
excess stomach acid
A full line of nasal saline products for
adults and children
A full line of oral rehydration products for
adults and children
+25% Growth Since Acquisition+25% Growth Since Acquisition
Murine/Clear Eyes: Expanding Our International Eye Care
Footprint
•
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II. Financial Oueruiew
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Excellent overall financial performance in the quarter
− Revenue of $209.6 million, an increase of 9.1%
− Adjusted EPS of $0.59(2), up 13.5%
− Adjusted Free Cash Flow increase of 17.4% to $50.2 million(2)
$192.1
$69.6
$42.7
$209.6
$76.6
$50.2
Total Revenue Adjusted EBITDA Adjusted EPS Adjusted Free Cash Flow
Q1 FY 17Q1 FY 16
9.1%
10.0%
13.5% 17.4%
$0.52 $0.59
(2) (2) (2)
Dollar values in millions, except per share data.
Q1 FY 17 Q1 FY 16 % Chg
Total Revenue 209.6$ 192.1$ 9.1%
Gross Margin 121.6 112.2 8.3%
% Margin 58.0% 58.4%
A&P 27.6 26.4 4.6%
% Total Revenue 13.2% 13.8%
Adjusted G&A(2) 17.3 16.2 7.1%
% Total Revenue 8.3% 8.4%
Adjusted EBITDA(2) 76.6$ 69.6$ 10.0%
% Margin 36.6% 36.2%
Adjusted Net Income(2) 31.4$ 27.4$ 14.7%
Adjusted Earnings Per Share(2) 0.59$ 0.52$ 13.5%
Revenue growth of +9.1%
– Organic growth of approximately 1% excluding the impact of Fx
– DenTek contributed $16.6 million of Revenue during the quarter
Gross Margin of 58.0%
A&P 13.2% of Revenue, $1.2 million more than Q1 FY 16
Adjusted EBITDA Margin of 36.6%(2)
Adjusted Net Income +14.7%(2) over Q1 FY16, ahead of topline growth
Dollar values in millions, except per share data.
Q1 FY 17 Q1 FY 16
Net Income - As Reported (5.5)$ 26.2$
Depreciation & Amortization 6.8 5.7
Other Non-Cash Operating Items 50.0 17.1
Working Capital (0.5) (5.5)
Operating Cash Flow 50.8$ 43.5$
Additions to Property and Equipment (0.9) (0.8)
Payments Associated with M&A 0.3 -
Adjusted Free Cash Flow 50.2$ 42.7$
Net Debt at 6/30/16 of $1,574 million comprised of:
– Cash on hand of $29 million
– $853 million of term loan and revolver
– $750 million of bonds
Leverage ratio(3) of 4.8x
Ongoing management of capital structure and debt refinancing
continues to support rapid deleveraging
– Interest expense is down vs Q1 FY 16 on higher debt level
Subsequent Manage for Cash brand sale resulted in proceeds of $40
million, received in Q2 FY17, to be used for incremental deleveraging
– Reduces pro forma leverage by ~0.1x
(4)
(2)
Dollar values in millions.
Increase in Other Non-Cash Operating Items reflects after tax loss of approximately $35 million related to divestitures.*
*
IT systems and processes integrated
Offices transitioned and majority of positions filled
Regulatory and quality functions integrated
Go-to-market strategy in-place and selling organization integrated
Optimizing supplier network
Investments in tooling to expand capacity
Marketing strategy formation underway
Brand plans and new product / innovation pipeline being developed
Prestige sold the PediaCare, Fiber Choice and New Skin brands to
Moberg Pharma AB in early July for $40 million in cash
Transaction will allow greater focus on Invest for Growth portfolio
and moves Prestige toward the stated target of 85% of sales from
Invest for Growth brands
Transaction will not impact FY2017 outlook for Adjusted EPS or
Adjusted Free Cash Flow as reduced D&A and interest expense
largely offset divested operating profit
Utilize sales proceeds to continue to delever, reduce interest
expense and build additional acquisition capacity
Ill. FY 17 Outlook and the Road Ahead
Dramamine· Co 41BM#@R+
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Revenue growth of +6% to +8% (including $11 million
of impact from Fx and discontinued items)
— 1H +6.5% to +8.5%, 2H +5.5% to +7.5%
— Organic growth of +1.5% to +2.0%
Revenue growth of +4% to +6% (including $11 million
of impact from Fx and discontinued items)
— 1H +5.0% to +7.0%, 2H +2.5% to +4.5%
— No change
Adjusted EPS +6% to +9% ($2.30 to $2.36)(5) No change
Adjusted Free Cash Flow of $185 million(6) or more No change
Continue Invest for Growth market share expansion with strong momentum heading into Q2
Increase digital investments
Focus on new product development and marketing innovation
Expand focus on developing professional marketing
Focus on all channels of distribution including c-store, dollar, and e-commerce
Integration completed
Executing on A&P plan, set stage for continued long term growth
Prioritize and invest in new product pipeline
Manage for Cash brand divestitures consistent with stated strategy and accretive to organic growth
Rapid deleveraging and increasing M&A capacity expected in FY 17
Opportunity set consistent with long term trends
Committed to aggressive and disciplined M&A strategy
Care
First �u arter FY 17 Results �21
(1) Organic Revenue Growth on a constant currency basis is a Non-GAAP financial measure and is reconciled to its most closely
related GAAP financial measure in our earnings release in the “About Non-GAAP Financial Measures” section.
(2) Adjusted G&A, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted EPS, Adjusted Free Cash Flow are
Non-GAAP financial measures and are reconciled to their most closely related GAAP financial measures in the attached
Reconciliation Schedule and in our earnings release in the “About Non-GAAP Financial Measures” section.
(3) Leverage ratio reflects net debt / covenant defined EBITDA.
(4) Operating cash flow is equal to GAAP net cash provided by operating activities.
(5) Adjusted EPS for FY 17 is a projected Non-GAAP financial measure, is reconciled to projected GAAP EPS in our earnings release
in the “About Non-GAAP Financial Measures” section and is calculated based on projected GAAP EPS of $1.55 to $1.61 plus
$0.08 of costs associated with DenTek integration plus $0.67 of costs associated with the loss on sale of assets, resulting in
$2.30 to $2.36.
(6) Adjusted Free Cash Flow for FY 17 is a projected Non-GAAP financial measure, is reconciled to projected GAAP Net Cash
Provided by Operating Activities in our earnings release in the “About Non-GAAP Financial Measures” section and is calculated
based on projected Net Cash Provided by Operating Activities of $190 million less projected capital expenditures of $8 million
plus payments associated with acquisitions of $3 million.
Three Months Ended June 30,
2016 2015
(In Thousands)
GAAP Total Revenues $ 209,575 $ 192,132
Adjustments:
DenTek revenues (16,627) -
Total adjustments (16,627) -
Non-GAAP Organic Revenues 192,948 192,132
Organic Revenue Growth 0.4%
Impact of foreign currency exchange rates (829)
Non-GAAP Organic Revenues on a constant currency basis $ 192,948 $ 191,303
Constant Currency Organic Revenue Growth 0.9%
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%
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 transitions - 1,406
Legal and professional fees associated with acquisitions and
divestitures(1) 484 -
Integration, transition and other costs associated with
acquisitions and divestitures 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%
Three Months Ended June 30,
2016 2015
Net Income EPS Net Income EPS
(In Thousands)
GAAP Net (Loss) Income $ (5,531) $(0.10) $ 26,173 $ 0.49
Adjustments:
Costs associated with CEO transition - - 1,406 0.03
Legal and professional fees associated with
acquisitions and divestitures 484 0.01 - -
Integration, transition and other costs associated
with acquisitions and divestitures 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
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
cash provided by operating activities as shown in
the Statement of Cash Flows 56,796 22,856
Changes in operating assets and liabilities, net of
effects from acquisitions as shown in the
Statement of Cash Flows (514) (5,508)
Total Adjustments 56,282 17,348
GAAP Net cash provided by operating activities 50,751 43,521
Purchase of property and equipment (895) (780)
Non-GAAP Free Cash Flow 49,856 42,741
Integration, transition and other payments
associated with acquisitions and divestitures 331 -
Non-GAAP Adjusted Free Cash Flow $ 50,187 $ 42,741
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
2017
Projected
Free Cash
Flow
(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