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
9,
2007
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 9,
2007, Prestige Brands Holdings, Inc. (the ‘‘Registrant’’) announced financial
results for the fiscal quarter and year ended March 31, 2007. A copy of the
press release announcing the Registrant’s earnings results for the fiscal
quarter and year ended March 31, 2007 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 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 9, 2007 announcing the Registrant’s financial results
for the fiscal quarter and year ended March 31, 2007 (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 9, 2007 PRESTIGE
BRANDS HOLDINGS, INC.
By:
/s/
Peter J. Anderson
Name:
Peter J.
Anderson
&#
160;
Title:
Chief
Financial Officer
EXHIBIT
INDEX
|
Exhibit
|
|
Description
|
|
99.1
|
|
Press
Release dated May 9, 2007 announcing the Registrant’s financial results
for the fiscal quarter and year ended March 31, 2007 (furnished
only).
|
Exhibit
99.1
Prestige
Brands Holdings, Inc. Reports Results for Fiscal Fourth Quarter & Year
Ended March
31,
2007
Irvington,
NY, May 9, 2007—Prestige Brands Holdings, Inc. (NYSE-PBH) today announced
results for the fourth quarter and fiscal year ended March 31,
2007.
Fourth
Quarter, Fiscal Year 2007
The
Company reported revenues of $78.0 million for the quarter ended March 31,
2007,
a decrease of 2% versus the comparable period of the prior year when the Company
reported revenues of $80.0 million. The quarter benefited from revenues derived
from the September 2006 acquisition of the Wartner® brand wart treatment
products. Excluding this acquisition, revenues would have declined by
approximately 5%. As previously announced, the results of the quarter reflect
a
weaker year-over-year cold/flu season that affected the Company’s Chloraseptic®
and Little Remedies® product lines, as well as declines in its personal care
segment.
Operating
income of $22.6 million for the quarter was $2.5 million or 13% higher than
the
prior year’s operating income of $20.1 million. Excluding the non-cash asset
impairment charge of $9.3 million in the fourth quarter of fiscal 2006,
operating income for the fourth quarter of fiscal 2007 of $22.6 million, was
$6.9 million less than the prior year comparable quarter’s adjusted operating
income of $29.5 million. The primary factors affecting operating income were
lower gross margin and increased A&P and G&A expenses during the
quarter. The Company’s gross margin decreased as a percent of sales from 54.8%
to 50.3%, primarily due to an increase in obsolescence reserves of $2.6 million
related to cough/cold products facing expiration dating.
Net
income for the quarter ended March 31, 2007 was $8.4 million or $0.17 per
diluted share versus $3.6 million, or $0.07 per diluted share, for the
comparable quarter of the prior year. “Adjusted net income” was $7.9 million, a
decline of $4.2 million from fiscal 2006 fourth quarter “adjusted net income” of
$12.1 million. See the attached
reconciliation
of net income to adjusted net income, a “non-GAAP financial measure” as that
term is defined by the Securities and Exchange Commission in Regulation
G.
Revenues
by Segment for the Fourth Quarter Ended March 31, 2007
The
Over-The-Counter (OTC) segment’s fourth quarter revenues of $43.3 million were
3% below those of the prior year of $44.7 million. Excluding the effects of
the
Wartner® acquisition, OTC organic revenues were down 7%. Weakness in the
cold/flu season led to declines in Chloraseptic® and Little Remedies® product
lines, which was partially offset by strong performance in The Doctor’s® line of
oral care items.
The
Company’s Household Cleaning Products segment reported revenues of $29.0
million, slightly above the prior year of $28.9 million. The segment’s leading
brand, Comet®, registered a slight decline in revenues primarily due to a
difference in promotional events compared to the prior year’s quarter. This was
offset by strong performance of Chore Boy® household scrubbers, and Spic and
Span® household cleaners, which grew approximately 11% and 9%, respectively,
during the fourth quarter.
Revenues
for the Personal Care segment, which account for approximately 8% of total
corporate revenues, declined $0.5 million from $6.3 million, or 9%, to $5.8
million, which was in line with expectations.
Fiscal
Year 2007
The
Company reported total revenues of $318.6 million for the fiscal year ended
March 31, 2007, or 7% greater than fiscal 2006 revenues of $296.7
million.
Operating
income of $94.7 million for fiscal 2007 was $10.8 million or 13% higher than
fiscal 2006 operating income of $83.9 million. Excluding the intangible asset
impairment charge of $9.3 million in fiscal 2006, adjusted operating income
for
fiscal 2007 increased $1.5 million from fiscal 2006 adjusted operating income
of
$93.5 million. The increase in operating income was the result of the sales
increase, partially offset by increased cost
of
sales
and G&A expenses. See attached reconciliation of operating income to
adjusted operating income, a “non-GAAP financial measure.”
The
Company’s reported net income of $36.1 million, or $0.72 per diluted share, was
up 37%, or $9.8 million in fiscal 2007. “Adjusted net income” of $34.2 million
for fiscal 2007, declined 2% from fiscal 2006 “adjusted net income” of $34.8
million. “Adjusted net income” resulted in “adjusted earnings per share” of
$0.68 per diluted share for fiscal 2007 versus $0.70 per diluted share in fiscal
2006. See the attached reconciliation of net income to adjusted net income
and
adjusted net income per share each of which is a “non-GAAP financial
measure.”
Free
Cash Flow
Free
cash
flow also is a “non-GAAP financial measure”. Free cash flow is presented in this
news release because management believes that it is a commonly used measure
of
liquidity, indicative of cash available for debt repayment and acquisitions.
The
Company defines “free cash flow” as operating cash flow less capital
expenditures.
The
Company’s free cash flow for the fourth quarter ended March 31, 2007 was $16.5
million, with operating cash flows of $16.6 million, less capital expenditures
of $0.1 million. For fiscal year 2007, free cash flow was $71.4 million, 34%
higher than the $53.3 million reported in the prior fiscal year, primarily
as a
result of a reduction in net working capital.
The
Company’s free cash flow was higher than net income due primarily to the
non-cash charges related to the asset impairment and deferred income taxes
combined with the Company’s long-term tax shield related to the amortization of
intangible assets and goodwill, net operating loss carry forwards, amortization
of certain debt acquisition costs, and relatively low capital
expenditures.
During
the fourth quarter the Company paid down approximately $7.9 million of senior
bank debt, thereby reducing debt outstanding to $463.4 million at March 31,
2007.
Outlook
For
fiscal year 2008, which commenced April 1, 2007, the Company expects organic
revenue growth to be within its current long-term average growth rate of 3-4%,
with total net revenues slightly higher as a result of a full year of the
acquisition of the Wartner® brand. The Company also expects reported net income
growth slightly below total net revenue growth, resulting primarily from
increased A&P expenditures. Acquisitions, if any, would be incremental to
that growth. The Company expects its free cash flow will again surpass net
income in fiscal year 2008, driven by the tax benefits of accelerated
amortization of intangible assets plus the amortization of certain debt
acquisition costs. However, the Company expects cash flow for fiscal year 2008
to be lower than the $71.4 million achieved in fiscal year 2007 because working
capital, which declined substantially in fiscal year 2007, is expected to
increase at the rate of sales in fiscal year 2008.
According
to Mark Pettie, Chairman of the Board and CEO, “Our focus is to deliver improved
organic growth in fiscal year 2008 and beyond. We expect to achieve this through
several initiatives, which include product innovation, stepped up A&P
investment, strengthening our distribution base, systematically reducing costs,
and reviewing our supplier network to reduce complexities.”
Conference
Call
The
Company will host a conference call today at 10:00 am EDT.
To
access
the conference call, listeners calling from within North America may dial
866-510-0711 at least 15 minutes prior to the start of the call. Those wishing
to access the call from outside North America should dial 617-597-5379. The
conference pass code 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://www.prestigebrandsinc.com.
Telephonic
replays will be available for two weeks following completion of the live call
and can be accessed at 888-286-8010 within North America and at 617-801-6888
from outside North America. The pass code is 51786688.
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® wart remover, Chloraseptic® sore throat
treatment, New-Skin® liquid bandage, Clear eyes® and Murine® eye care products,
Little Remedies® pediatric over-the-counter products, Cutex® nail polish
remover, Comet® and Spic and Span® 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 is 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 the demand for its
products, earnings per share, future cash flows from operations, future revenues
and margin requirement and expansion, the success of new product introductions,
growth in costs and expenses, and the impact of acquisitions, divestitures,
restructurings and other unusual items, including Prestige Brands Holdings'
ability to integrate and obtain the anticipated results and synergies from
its
acquisitions. These projections and 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
projected as a result of certain 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
Prestige
Brands Holdings, Inc.
Consolidated
Statements of Operations
|
Three
Months Ended March 31
|
|||||||
|
(In
thousands, except per share data)
|
2007
|
2006
|
|||||
|
Revenues
|
|||||||
|
Net
sales
|
$
|
77,683
|
$
|
79,662
|
|||
|
Other
revenues
|
353
|
352
|
|||||
|
Total
revenues
|
78,036
|
80,014
|
|||||
|
Cost
of Sales
|
|||||||
|
Cost
of sales
|
38,797
|
36,206
|
|||||
|
Gross
profit
|
39,239
|
43,808
|
|||||
|
Operating
Expenses
|
|||||||
|
Advertising
and promotion
|
6,196
|
5,775
|
|||||
|
General
and administrative
|
7,655
|
5,954
|
|||||
|
Depreciation
|
128
|
263
|
|||||
|
Amortization
of intangible assets
|
2,627
|
2,431
|
|||||
|
Impairment
of goodwill
|
--
|
1,892
|
|||||
|
Impairment
of intangible asset
|
--
|
7,425
|
|||||
|
Total
operating expenses
|
16,606
|
23,740
|
|||||
|
Operating
income
|
22,633
|
20,068
|
|||||
|
Other
income (expense)
|
|||||||
|
Interest
income
|
185
|
117
|
|||||
|
Interest
expense
|
(10,000
|
)
|
(9,756
|
)
|
|||
|
Total
other income (expense)
|
(9,815
|
)
|
(9,639
|
)
|
|||
|
Income
before income taxes
|
12,818
|
10,429
|
|||||
|
Provision
for income taxes
|
(4,423
|
)
|
(6,800
|
)
|
|||
|
Net
income
|
$
|
8,395
|
$
|
3,629
|
|||
|
Basic
earnings per share
|
$
|
0.17
|
$
|
0.07
|
|||
|
Diluted
earnings per share
|
$
|
0.17
|
$
|
0.07
|
|||
|
Weighted
average shares outstanding:
Basic
|
49,607
|
49,077
|
|||||
|
Diluted
|
50,027
|
50,008
|
|||||
Prestige
Brands Holdings, Inc.
Consolidated
Statements of Operations
|
Year
Ended March 31
|
||||||||||
|
(In
thousands, except per share data)
|
2007
|
2006
|
2005
|
|||||||
|
Revenues
|
||||||||||
|
Net
sales
|
$
|
316,847
|
$
|
296,239
|
$
|
288,918
|
||||
|
Other
revenues
|
1,787
|
429
|
151
|
|||||||
|
Total
revenues
|
318,634
|
296,668
|
289,069
|
|||||||
|
Cost
of Sales
|
||||||||||
|
Cost
of sales
|
153,147
|
139,430
|
139,009
|
|||||||
|
Gross
profit
|
165,487
|
157,238
|
150,060
|
|||||||
|
Operating
Expenses
|
||||||||||
|
Advertising
and promotion
|
32,005
|
32,082
|
29,697
|
|||||||
|
General
and administrative
|
28,416
|
21,158
|
20,198
|
|||||||
|
Depreciation
|
744
|
1,736
|
1,899
|
|||||||
|
Amortization
of intangible assets
|
9,640
|
9,041
|
7,901
|
|||||||
|
Impairment
of goodwill
|
--
|
1,892
|
--
|
|||||||
|
Impairment
of intangible asset
|
--
|
7,425
|
--
|
|||||||
|
Total
operating expenses
|
70,805
|
73,334
|
59,695
|
|||||||
|
Operating
income
|
94,682
|
83,904
|
90,365
|
|||||||
|
Other
income (expense)
|
||||||||||
|
Interest
income
|
972
|
568
|
371
|
|||||||
|
Interest
expense
|
(40,478
|
)
|
(36,914
|
)
|
(45,097
|
)
|
||||
|
Loss
on disposal of equipment
|
--
|
--
|
(9
|
)
|
||||||
|
Loss
on extinguishment of debt
|
--
|
--
|
(26,854
|
)
|
||||||
|
Total
other income (expense)
|
(39,506
|
)
|
(36,346
|
)
|
(71,589
|
)
|
||||
|
Income
before income taxes
|
55,176
|
47,558
|
18,776
|
|||||||
|
Provision
for income taxes
|
(19,098
|
)
|
(21,281
|
)
|
(8,556
|
)
|
||||
|
Net
income
|
36,078
|
26,277
|
10,220
|
|||||||
|
Cumulative
preferred dividends on Senior
Preferred and Class B Preferred Units
|
--
|
--
|
(25,395
|
)
|
||||||
|
Net
income (loss) available common
stockholders
|
$
|
36,078
|
$
|
26,277
|
$
|
(15,175
|
)
|
|||
|
Basic
earnings (loss) per share
|
$
|
0.73
|
$
|
0.54
|
$
|
(0.55
|
)
|
|||
|
Diluted
earnings (loss) per share
|
$
|
0.72
|
$
|
0.53
|
$
|
(0.55
|
)
|
|||
|
Weighted
average shares outstanding:
Basic
|
49,460
|
48,908
|
27,546
|
|||||||
|
Diluted
|
50,020
|
50,008
|
27,546
|
|||||||
Prestige
Brands Holdings, Inc.
Consolidated
Balance Sheets
(In
thousands)
|
Assets
|
March
31, 2007
|
March
31, 2006
|
|||||
|
Current
assets
|
|||||||
|
Cash
and cash equivalents
|
$
|
13,758
|
$
|
8,200
|
|||
|
Accounts
receivable
|
35,167
|
40,042
|
|||||
|
Inventories
|
30,173
|
33,841
|
|||||
|
Deferred
income tax assets
|
2,735
|
3,227
|
|||||
|
Prepaid
expenses and other current assets
|
1,935
|
701
|
|||||
|
Total
current assets
|
83,768
|
86,011
|
|||||
|
Property
and equipment
|
1,449
|
1,653
|
|||||
|
Goodwill
|
310,947
|
297,935
|
|||||
|
Intangible
assets
|
657,058
|
637,197
|
|||||
|
Other
long-term assets
|
10,194
|
15,849
|
|||||
|
Total
Assets
|
$
|
1,063,416
|
$
|
1,038,645
|
|||
|
Liabilities
and Stockholders’ Equity
|
|||||||
|
Current
liabilities
|
|||||||
|
Accounts
payable
|
$
|
19,303
|
$
|
18,065
|
|||
|
Accrued
interest payable
|
7,552
|
7,563
|
|||||
|
Income
taxes payable
|
--
|
1,795
|
|||||
|
Other
accrued liabilities
|
10,505
|
4,582
|
|||||
|
Current
portion of long-term debt
|
3,550
|
3,730
|
|||||
|
Total
current liabilities
|
40,910
|
35,735
|
|||||
|
Long-term
debt
|
459,800
|
494,900
|
|||||
|
Other
long-term liabilities
|
2,801
|
--
|
|||||
|
Deferred
income tax liabilities
|
114,571
|
98,603
|
|||||
|
Total
Liabilities
|
618,082
|
629,238
|
|||||
|
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 and 50,056 shares at March 31,
2007 and 2006, respectively
|
501
|
501
|
|||||
|
Additional
paid-in capital
|
379,225
|
378,570
|
|||||
|
Treasury
stock, at cost - 55 shares and 18 shares at March
31, 2007 and 2006, respectively
|
(40
|
)
|
(30
|
)
|
|||
|
Accumulated
other comprehensive income
|
313
|
1,109
|
|||||
|
Retained
earnings
|
65,335
|
29,257
|
|||||
|
Total
stockholders’ equity
|
445,334
|
409,407
|
|||||
|
Total
Liabilities and Stockholders’ Equity
|
$
|
1,063,416
|
$
|
1,038,645
|
|||
Prestige
Brands Holdings, Inc.
Consolidated
Statements of Cash Flows
|
Year
Ended March 31
|
||||||||||
|
(In
thousands)
|
2007
|
2006
|
2005
|
|||||||
|
Operating
Activities
|
||||||||||
|
Net
income
|
$
|
36,078
|
$
|
26,277
|
$
|
10,220
|
||||
|
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||||
|
Depreciation
and amortization
|
10,384
|
10,777
|
9,800
|
|||||||
|
Amortization
of financing costs
|
3,257
|
2,649
|
2,943
|
|||||||
|
Impairment
of goodwill and intangible assets
|
--
|
9,317
|
--
|
|||||||
|
Deferred
income taxes
|
9,662
|
14,976
|
8,344
|
|||||||
|
Stock-based
compensation
|
655
|
383
|
--
|
|||||||
|
Loss
on extinguishment of debt
|
--
|
--
|
26,854
|
|||||||
|
Other
|
--
|
--
|
9
|
|||||||
|
Changes
in operating assets and liabilities, net of effects
of purchases of businesses
|
||||||||||
|
Accounts
receivable
|
4,875
|
(1,350
|
)
|
(7,227
|
)
|
|||||
|
Inventories
|
4,292
|
(7,156
|
)
|
2,922
|
||||||
|
Prepaid
expenses and other assets
|
(1,235
|
)
|
2,623
|
(1,490
|
)
|
|||||
|
Accounts
payable
|
(186
|
)
|
(6,037
|
)
|
5,059
|
|||||
|
Income
taxes payable
|
(1,795
|
)
|
1,795
|
--
|
||||||
|
Other
accrued liabilities
|
5,912
|
(393
|
)
|
(6,392
|
)
|
|||||
|
Net
cash provided by operating activities
|
71,899
|
53,861
|
51,042
|
|||||||
|
Investing
Activities
|
||||||||||
|
Purchases
of equipment
|
(540
|
)
|
(519
|
)
|
(365
|
)
|
||||
|
Purchases
of intangible assets
|
--
|
(22,655
|
)
|
--
|
||||||
|
Change
in other assets due to purchase price adjustments
|
750
|
--
|
--
|
|||||||
|
Purchases
of businesses, net
|
(31,261
|
)
|
(30,989
|
)
|
(425,479
|
)
|
||||
|
Net
cash used for investing activities
|
(31,051
|
)
|
(54,163
|
)
|
(425,844
|
)
|
||||
|
Financing
Activities
|
||||||||||
|
Proceeds
from the issuance of notes
|
--
|
30,000
|
698,512
|
|||||||
|
Payment
of deferred financing costs
|
--
|
(13
|
)
|
(24,539
|
)
|
|||||
|
Repayment
of notes
|
(35,280
|
)
|
(26,730
|
)
|
(529,538
|
)
|
||||
|
Prepayment
penalty
|
--
|
--
|
(10,875
|
)
|
||||||
|
Payments
on interest rate caps
|
--
|
--
|
(2,283
|
)
|
||||||
|
Proceeds
from the issuance of equity, net
|
--
|
(63
|
)
|
475,554
|
||||||
|
Redemption
of equity interests
|
(10
|
)
|
(26
|
)
|
(230,088
|
)
|
||||
|
Net
cash provided by (used for) financing activities
|
(35,290
|
)
|
3,168
|
376,743
|
||||||
|
Increase
in cash
|
5,558
|
2,866
|
1,941
|
|||||||
|
Cash
- beginning of year
|
8,200
|
5,334
|
3,393
|
|||||||
|
Cash
- end of year
|
$
|
13,758
|
$
|
8,200
|
$
|
5,334
|
||||
Prestige
Brands Holdings, Inc.
Reconciliation
to Adjusted Operating Income and Net Income
|
Three
Months Ended March 31
|
|||||||
|
(In
thousands, except per share data)
|
2007
|
2006
|
|||||
|
Adjusted
Operating Income
|
|||||||
|
Operating
Income
|
$
|
22,633
|
$
|
20,068
|
|||
|
Charges
due to inventory step-up
|
--
|
149
|
|||||
|
Impairment
of goodwill and intangible assets
|
--
|
9,317
|
|||||
|
Adjusted
Operating Income
|
$
|
22,633
|
$
|
29,534
|
|||
|
Reconciliation
to Adjusted Net Income
|
|||||||
|
Income
before income taxes
|
$
|
12,818
|
$
|
10,429
|
|||
|
Charges
due to inventory step-up
|
--
|
149
|
|||||
|
Impairment
of goodwill and intangible
assets
|
--
|
9,317
|
|||||
|
Adjusted
income before income taxes
|
12,818
|
19,895
|
|||||
|
Provision
for income taxes (applicable
effective
rates applied to each period
excluding
adjustments applicable to
deferred
tax rates); 38.4% in fiscal 2007
and
39.1% in fiscal 2006)
|
(4,923
|
)
|
(7,759
|
)
|
|||
|
Adjusted
Net Income
|
$
|
7,895
|
$
|
12,136
|
|||
|
Adjusted
net income per common share
|
|||||||
|
Basic
|
$
|
0.16
|
$
|
0.25
|
|||
|
Diluted
|
$
|
0.16
|
$
|
0.24
|
|||
|
Weighted
average shares outstanding:
Basic
|
49,607
|
49,077
|
|||||
|
Diluted
|
50,027
|
50,008
|
|||||
Prestige
Brands Holdings, Inc.
Reconciliation
to Adjusted Operating Income and Net Income
|
Year
Ended March 31
|
|||||||
|
2007
|
2006
|
||||||
|
Adjusted
Operating Income
|
|||||||
|
Operating
Income
|
$
|
94,682
|
$
|
83,904
|
|||
|
Charges
due to inventory step-up
|
276
|
248
|
|||||
|
Impairment
of goodwill and intangible assets
|
--
|
9,317
|
|||||
|
Adjusted
Operating Income
|
$
|
94,958
|
$
|
93,469
|
|||
|
Reconciliation
to Adjusted Net Income
|
|||||||
|
Income
before income taxes
|
$
|
55,176
|
$
|
47,558
|
|||
|
Charges
due to inventory step-up
|
276
|
248
|
|||||
|
Impairment
of goodwill and intangible assets
|
--
|
9,317
|
|||||
|
Adjusted
income before income taxes
|
55,452
|
57,123
|
|||||
|
Provision
for income taxes (applicable
effective
rates applied to each period,
excluding
adjustments applicable to
deferred
tax rates); 38.4% in fiscal 2007
and
39.1% in fiscal 2006)
|
(21,293
|
)
|
(22,278
|
)
|
|||
|
Adjusted
Net Income
|
$
|
34,159
|
$
|
34,845
|
|||
|
Adjusted
net income per common share
|
|||||||
|
Basic
|
$
|
0.69
|
$
|
0.71
|
|||
|
Diluted
|
$
|
0.68
|
$
|
0.70
|
|||
|
Weighted
average shares outstanding:
Basic
|
49,460
|
48,907
|
|||||
|
Diluted
|
50,020
|
50,008
|
|||||
Prestige
Brands Holdings, Inc.
Segment
Information
|
Three
Months Ended March 31, 2007
|
|||||||||||||
|
Over-the-Counter
|
Household
|
Personal
|
|||||||||||
|
Drug
|
Cleaning
|
Care
|
Consolidated
|
||||||||||
|
Net
sales
|
$
|
43,277
|
$
|
28,624
|
$
|
5,782
|
$
|
77,683
|
|||||
|
Other
revenues
|
--
|
353
|
--
|
353
|
|||||||||
|
Total
revenues
|
43,277
|
28,977
|
5,782
|
78,036
|
|||||||||
|
Cost
of sales
|
17,403
|
18,120
|
3,274
|
38,797
|
|||||||||
|
Gross
profit
|
25,874
|
10,857
|
2,508
|
39,239
|
|||||||||
|
Advertising
and promotion
|
4,628
|
1,375
|
193
|
6,196
|
|||||||||
|
Contribution
margin
|
$
|
21,246
|
$
|
9,482
|
$
|
2,315
|
33,043
|
||||||
|
Other
operating expenses
|
10,410
|
||||||||||||
|
Operating
income
|
22,633
|
||||||||||||
|
Other
expenses
|
9,815
|
||||||||||||
|
Provision
for income taxes
|
4,423
|
||||||||||||
|
Net
income
|
$
|
8,395
|
|||||||||||
|
Three
Months Ended March 31, 2006
|
|||||||||||||
|
Over-the-Counter
|
Household
|
Personal
|
|||||||||||
|
Drug
|
Cleaning
|
Care
|
Consolidated
|
||||||||||
|
Net
sales
|
$
|
44,747
|
$
|
28,573
|
$
|
6,342
|
$
|
79,662
|
|||||
|
Other
revenues
|
--
|
352
|
--
|
352
|
|||||||||
|
Total
revenues
|
44,747
|
28,925
|
6,342
|
80,014
|
|||||||||
|
Cost
of sales
|
15,323
|
17,352
|
3,531
|
36,206
|
|||||||||
|
Gross
profit
|
29,424
|
11,573
|
2,811
|
43,808
|
|||||||||
|
Advertising
and promotion
|
4,216
|
1,267
|
292
|
5,775
|
|||||||||
|
Contribution
margin
|
$
|
25,208
|
$
|
10,306
|
$
|
2,519
|
38,033
|
||||||
|
Other
operating expenses
|
17,965
|
||||||||||||
|
Operating
income
|
20,068
|
||||||||||||
|
Other
expenses
|
9,639
|
||||||||||||
|
Provision
for income taxes
|
6,800
|
||||||||||||
|
Net
income
|
$
|
3,629
|
|||||||||||
Prestige
Brands Holdings, Inc.
Segment
Information
|
Year
Ended March 31, 2007
|
|||||||||||||
|
Over-the-Counter
|
Household
|
Personal
|
|||||||||||
|
Drug
|
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
|
|||||||||||
|
Year
Ended March 31, 2006
|
|||||||||||||
|
Over-the-Counter
|
Household
|
Personal
|
|||||||||||
|
Drug
|
Cleaning
|
Care
|
Consolidated
|
||||||||||
|
Net
sales
|
$
|
160,942
|
$
|
107,372
|
$
|
27,925
|
$
|
296,239
|
|||||
|
Other
revenues
|
--
|
429
|
--
|
429
|
|||||||||
|
Total
revenues
|
160,942
|
107,801
|
27,925
|
296,668
|
|||||||||
|
Cost
of sales
|
58,491
|
65,088
|
15,851
|
139,430
|
|||||||||
|
Gross
profit
|
102,451
|
42,713
|
12,074
|
157,238
|
|||||||||
|
Advertising
and promotion
|
22,424
|
6,495
|
3,163
|
32,082
|
|||||||||
|
Contribution
margin
|
$
|
80,027
|
$
|
36,218
|
$
|
8,911
|
125,156
|
||||||
|
Other
operating expenses
|
41,252
|
||||||||||||
|
Operating
income
|
83,904
|
||||||||||||
|
Other
expenses
|
36,346
|
||||||||||||
|
Provision
for income taxes
|
21,281
|
||||||||||||
|
Net
income
|
$
|
26,277
|
|||||||||||