Prestige Consumer Healthcare Inc. · NYSE:PBH
Prestige Consumer Healthcare — Prestige Brands Holdings — Q1 FY2014 Earnings Presentation
30 slides from Prestige Consumer Healthcare's earnings presentation, Aug 1, 2013
Slide 1: Review of First Quarter F'14 Results
P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 4 R e s u l t s 1 Review of First Quarter F’14 Results Matt Mannelly, CEO & President Ron Lombardi, CFO August 1, 2013 Exhibit 99.2
Slide 2: Safe Harbor Disclosure
P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 4 R e s u l t s 2 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
Slide 3: Agenda for Today's Discussion
P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 4 R e s u l t s 3 1. Q1 FY2014: Performance Highlights 2. Acquisition 3. Q1 FY2014: Financial Overview 4. FY2014 Outlook and The Road Ahead Agenda for Today’s Discussion
Slide 4: Our Corporate Mission
P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 4 R e s u l t s 4 Our Corporate Mission To be the Best Mid-Sized, Public Company in the Consumer Health Care Market The following principles guide us in this endeavor: deliver outstanding shareholder value through superior growth in sales,
Slide 5: Q1 FY2014: Performance Highlights
P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 4 R e s u l t s 5 Q1 FY2014: Performance Highlights
Slide 6: Q1: Executing Against Our Proven Formula for Continued E.P.S. Growth
P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 4 R e s u l t s 6 Q1: Executing Against Our Proven Formula for Continued E.P.S. Growth Note: (1) Management estimate for weighted average growth rate for Prestige Brands’ Core OTC categories. + + >$125 MM per year Predictable E.P.S. Impact 1-
Slide 7: First Quarter Highlights: Delivering Against Stated Strategy
P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 4 R e s u l t s 7 First Quarter Highlights: Delivering Against Stated Strategy Solid financial performance: +14.3% Adjusted E.P.S. growth − Q1 consolidated net revenue of $143.0 million, down (1.9%) versus prior year excluding divested Phaz
Slide 8: Performance of Core OTC Portfolio
P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 4 R e s u l t s 8 Performance of Core OTC Portfolio Source: Latest 12-week IRI multi-outlet retail dollar sales growth for relevant quarter. Note: Data reflects retail dollar sales percentage growth versus prior period. (1) Excludes expected
Slide 9: Brand Building: Continued New Product Innovation
P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 4 R e s u l t s 9 Brand Building: Continued New Product Innovation
Slide 10: Introducing New Headache Relief Shots
P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 4 R e s u l t s 1 0 Introducing New Headache Relief Shots Fast Liquid Action Long Lasting Relief Convenience Great Tasting Flavors
Slide 11: Introducing New Cherry
P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 4 R e s u l t s 1 1 Introducing New Cherry Safe Fast Pain Relief in a Great Tasting Cherry Flavor Convenient Stick Pack Delivery System Powders are Preferred in the South
Slide 12: Introducing Fruity Bites
P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 4 R e s u l t s 1 2 Introducing Fruity Bites: A Great-Tasting New Fiber Gummy to Promote G.I. Health Supported by print advertising in major magazines
Slide 13: Vanessa Williams Campaign Reaches A New Audience
P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 4 R e s u l t s 1 3 Vanessa Williams Campaign Reaches A New Audience Television Advertising Campaign conveys the “healthy eyes” message Strong Digital Presence Social Media Component Extensive PR Effort Reaches Targeted Media & Consum
Slide 14: Acquisition
P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 4 R e s u l t s 1 4 Acquisition
Slide 15: The Care Pharmaceuticals Acquisition
P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 4 R e s u l t s 1 5 The Care Pharmaceuticals Acquisition Overview: Australian based marketer and distributor of “heritage” OTC brands for adults and children Headquarters: Sydney, Australia Employees: 35 employees including 17-person sa
Slide 16: A Portfolio of Leading Brands in Niche Categories
P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 4 R e s u l t s 1 6 A Portfolio of Leading Brands in Niche Categories P edi at ric s W ome n 's He alt h Brand Market Position #1 #3 #1 #2 #1 #1 #5 #2 Respiratory Anorectal Laxatives Iron Supplements Eye Wipes Ovulation Testing Cough Cold Fem
Slide 17: Strategic Rationale
P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 4 R e s u l t s 1 7 Strategic Rationale Establishes local presence in Australia and New Zealand Leverages and strengthens competencies in cough-cold, eye and ear care, and pediatrics Allows for the consolidation of Murine into Care Phar
Slide 18: The Road Ahead: Where Are We Going?
P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 4 R e s u l t s 1 8 The Road Ahead: Where Are We Going? Profitable “stand-alone” OTC business Closely aligned business model and culture Management team with proven brand building and M&A capabilities Near-term revenue synergy opportu
Slide 19: Care Represents Another Step in the Expansion of Prestige's International Business
P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 4 R e s u l t s 1 9 Care Represents Another Step in the Expansion of Prestige’s International Business Pre-GSK Post-GSK Post-Care U.S. International U.S. International U.S. International Distributor model Predominantly established markets
Slide 20: Prestige has a Proven Ability To Source M&A Opportunities
P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 4 R e s u l t s 2 0 Prestige has a Proven Ability To Source M&A Opportunities…
Slide 21: And Execute in Diverse Situations
P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 4 R e s u l t s 2 1 …And Execute in Diverse Situations Key Brands # of Brands: 5 1 17 11 Source: Private Equity Large U.S. Pharma Large U.K. Pharma Private Aus. OTC Type of Transaction: Going Concern Brand Sale Carve-Out Going Concern Process
Slide 22: Q1 FY2014: Financial Overview
P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 4 R e s u l t s 2 2 Q1 FY2014: Financial Overview
Slide 23: Summary Financial Performance
P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 4 R e s u l t s 2 3 Summary Financial Performance Dollar values in millions, except per share data Notes: (1) Reported net revenue for Q1 FY’13 was $147.0 million. Adjusted net revenue for Q1 FY’13 was $147.4 million and excludes transition r
Slide 24: Q1 Consolidated Financial Summary
P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 4 R e s u l t s 2 4 Adjusted Net Revenue declined ($2.7) million, or (1.9%), excluding results in prior year quarter from the divested Phazyme brand – Excluding the Pediatrics portfolio and Beano, core OTC revenue growth of 4.5% over the pr
Slide 25: Net Income and E.P.S. Reconciliation
P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 4 R e s u l t s 2 5 Net Income and E.P.S. Reconciliation Dollar values in millions, except per share data Note: These Non-GAAP financial measures are reconciled to their reported GAAP amounts in our Earnings Release in the “About Non-GAAP Fin
Slide 26: Debt Profile & Financial Compliance
P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 4 R e s u l t s 2 6 Debt Profile & Financial Compliance: Total Net Debt at 6/30/13 of $941 million comprised of: – Cash on hand of $19.3 million – $445 million of term loan – $500 million of bonds – $15 million of revolver Leverage ratio(
Slide 27: FY2014 Outlook and Road Ahead
P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 4 R e s u l t s 2 7 FY2014 Outlook and Road Ahead
Slide 28: FY Focus
P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 4 R e s u l t s 2 8 FY 14 Focus Stay the course in a transitional marketplace − Continue brand building and investing in Core OTC portfolio • New ad campaigns for Goody’s, Gaviscon, PediaCare, and Beano beginning in Q2 • Launch PediaCare Si
Slide 29: Our confidence for Long-Term E.P.S. Guidance
P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 4 R e s u l t s 2 9 Our confidence for Long-Term E.P.S. Guidance +
Slide 30: R e s u l t s
P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 4 R e s u l t s 3 0
Prestige Brands Holdings — Q1 FY2014 Earnings Presentation on 6ix