Prestige Consumer Healthcare Inc. · NYSE:PBH
Prestige Consumer Healthcare — Prestige Brands Holdings — Q2 FY2012 Earnings Presentation
24 slides from Prestige Consumer Healthcare's earnings presentation, Nov 9, 2011
Slide 1: Review of Second Quarter F'12 Results
November 10, 2011 Review of Second Quarter F’12 Results Matthew Mannelly, CEO Ronald Lombardi, CFO Exhibit 99.2
Slide 2: Safe Harbor Disclosure
2 Safe Harbor Disclosure This presentation contains certain “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements about the Company‟s growth strategies, investments in advertising and promotion, market position, product introducti
Slide 3: Second Quarter Highlights
3 Second Quarter Highlights Solid financial performance for Q2: − Q2 sales of $105.5 million, up 34.8% from the prior year‟s Q2; on the heels of Q1 sales of $95.3 million, up 10.8% − Revenue growth of over 4% for five Core OTC brands compared to last year‟s Q2, fifth consecutive quarter of growth
Slide 4: Net Sales: Five Straight Quarters of Organic Core OTC Growth
4 Net Sales Five Straight Quarters of Organic Core OTC Growth Excluding Acquisitions Delivering Consistent Organic Growth Prior year comparable quarter Applicable quarter Note: Dollars in Millions. YoY % Growth $38.6 $40.5 $35.9 $37.0 $40.6 $35.4 $33.1 $33.4 $39.0 $39.0 1.1% 14.1% 8.4% 10.7% 4.1% --
Slide 5: Solid OTC Sales Growth
5 Solid OTC Sales Growth Q2 FY 2011 Q2 FY 2012 (Dollars in Millions) $78.3 $39.0 $105.5 $40.6 $26.4$27.5 $0.0 $25.0 $50.0 $75.0 $100.0 $125.0 Prestige Total 5 Core Legacy OTC Brands (Excluding Acquisitions) Household 34.8% 4.1% (3.9%)
Slide 6: Consumption at Retail Driven by Effective A&P Investment
6 Consumption at Retail Driven by Effective A&P Investment Notes: Consumption is based on IRI (FDM) for 12 week period ending October 2, 2011. Category Brand (2.0%) (2.4%) 5.0% 12.1% (10.7%) (15.0%) (5.0%) 5.0% 15.0% 25.0% 35.0% Prestige Total 9 Core OTC Household (1.3%)
Slide 7: Resulting in Solid Market Share Gains Across the Portfolio of Brands
7 Resulting in Solid Market Share Gains Across the Portfolio of Brands Notes: Market share is based on IRI (FDM) for 12 week period ending October 2, 2011. IRI accounts for approximately 55% of US revenue. 11.7% 4.3% 9.1% -- 3.0% 6.0% 9.0% 12.0% 15.0% 9 Core OTC Household Total Prestige Market Share
Slide 8: Clear Eyes; A Vision of A Growing Brand
8 Clear Eyes; A Vision of A Growing Brand Innovation in eye care gives consumers new cooling sensation with Clear Eyes Cooling Comfort New memorable TV ads featuring Ben Stein bring clear message of brand attributes Coupons in print and online stimulate consumer purchase and interest in newest
Slide 9: PediaCare Surrounds Consumers
9 PediaCare Surrounds Consumers 360 Innovated as the first in the market to bring new, safer dosing syringe system to parents New expanded marketing/advertising efforts reach out to consumers on TV, in print, on the web, and through professional pediatric channels PR effort featuring Dr. Jim S
Slide 10: Progress Toward Household Stabilization Goal
10 Progress Toward Household Stabilization Goal Q1 F’12 Q2 F’ 12 $24.1 $26.4 (9.1%) (3.9%) 1) STRENGTHEN: Competitiveness at retail through enhanced consumer value (Bonus Pack in second half) 2) EXPAND: Distribution across portfolio (Home Depot) 3) DEEPEN: Dollar Store penetration with Comet Cla
Slide 11: PBH Portfolio Well-Positioned For Future and Versus Competition
11 PBH Portfolio Well-Positioned For Future… and Versus Competition OTC portfolio has grown from 57% to 75% in the last two years; now includes nine core brands PBH brands in strong position – Compete in niche categories – Eight #1 or #2 brands in their respective categories, representing approx
Slide 12: Cool New Products For The Cooler Weather
12 Cool New Products For The Cooler Weather
Slide 13: Strong Balance Sheet for This Economic Environment
13 Strong Balance Sheet for This Economic Environment Excellent Free Cash Flow ~ $60+ million annually in various economic conditions* Robust Free Cash Flow provides leverage comfort due to rapid debt repayments* Leverage ratio of approximately 3.6x trailing Proforma EBITDA Capex <$1 million
Slide 14: One Year After Acquiring Blacksmith; Where Are We Now?
14 One Year After Acquiring Blacksmith; Where Are We Now? Transformed to 75% OTC: fulfilling our stated objectives Now 9 core OTC brands supported by strong A&P for future growth Strengthened expertise in cough/cold, pediatrics and oral care Strong consumer franchises combined with increased
Slide 15: Financial Overview: Solid Financial Performance
15 Financial Overview: Solid Financial Performance (Dollars in Millions, Except Per Share Data) $78.3 $26.2 $105.5 $32.0 $0.23 $22.1$0.26 $18.0 Net Revenue Adjusted EBITDA Adjusted EPS Cash Flow From Operations 21.8% 34.8% 13.0% (18.5%) Q2 FY 2011 Q2 FY 2012 Strong A&P investment behind core OTC b
Slide 16: Consolidated Financial Summary (Quarter)
16 Consolidated Financial Summary Net Revenue grew by $27.2 million or 34.8% over year ago. – 4.1% growth in legacy core OTC. – Acquisitions added $27.6 million. – Excluding acquisitions, revenue nearly flat as OTC gains were offset by lower HH revenue. As expected, gross margin was 3.3 ppt lowe
Slide 17: Consolidated Financial Summary (Year to Date)
17 Consolidated Financial Summary Net Revenue grew by $51.3 million or 34.3% over year ago. – 7.2% growth in legacy core OTC. – Acquisitions added $52.1 million. – Excluding acquisitions, revenue close to last year‟s level as OTC gains were offset by lower HH revenue. As expected, gross margin w
Slide 18: Net Income and EPS Reconciliation
18 Net Income and EPS Reconciliation (Dollars in Millions, Except Per Share Data) 3 Months Ended 6 Months Ended Q2 FY 2012 Q2 FY 2012 Net Net Income EPS Income EPS Q2 FY 2012 Adjusted for One-Time Items * $12.9 $0.26 $24.8 $0.49 One-Time Adjustments: Lawsuit Settlement net of Professional Fees -- --
Slide 19: Q2 Segment Financial Summary
19 Q2 Segment Financial Summary OTC segment revenue grew 55.7% with legacy core OTC up 4.1% in Q2 behind dedicated A&P support. Acquisitions added $27.6 million. Household revenue declined 3.9% due to continued strong competitive pricing and a challenging retail environment. OTC Gross Margin d
Slide 20: Fiscal Year to Date Segment Financial Summary
20 Fiscal Year to Date Segment Financial Summary OTC segment revenue grew 57.3% with legacy core OTC up 7.2% behind dedicated A&P support. Acquisitions added $52.1 million. Household revenue declined 6.5% due to continued strong competitive pricing and a challenging retail environment. OTC Gro
Slide 21: Prestige Strength: Cash Flow from Operations
21 Prestige Strength: Cash Flow from Operations Quarterly and Semi-annual cash flows are lower than last year due to the working capital build from higher sales volumes. Debt Profile & Covenant Compliance: Total Indebtedness at 9/30/11, $452 million, reflects a Q2 pay down of $17.0 million and $
Slide 22: Well-Positioned for The Second Half of FY 2012
22 Well-Positioned for The Second Half of FY 2012 Strategic focus on core OTC brands will continue to drive future value creation Brand building investments lead to continued solid financial performance in the second half of F „12 A&P investments to increase during cough/cold season as usual
Slide 23: Clear Roadmap for Value Creation
23 Clear Roadmap for Value Creation Drive Core Organic Growth Exclusive OTC M&A Focus Strategic Portfolio Management
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