Prestige Consumer Healthcare Inc. · NYSE:PBH
Prestige Consumer Healthcare — Q1 FY2020 Earnings Presentation
21 slides from Prestige Consumer Healthcare's earnings presentation, Aug 1, 2019
Slide 1: First Quarter FY 2020 Results
Exhibit 99.2 PrestigeConsumer HEALTHCARE First Quarter FY 2020 Results August 1°, 2019 [>] 75 ¢ —— (deniek¥
Slide 2: Forward-looking statements
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 revenues, organic growth, adjusted EPS, and adjusted free cash flow; the ma
Slide 3: Agenda for Today's Discussion
———S aa ene eee ene Agenda for Today's Discussion |. Performance Highlights ll. Financial Overview Ill. FY 20 Outlook First Quarter FY 20 Results Mentinoaee
Slide 4: I. Performance Highlights
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Slide 5: Q1 FY Performance Highlights
Q1 FY 20 Performance Highlights Revenue of $232.2 million, flat us PY on an organic basis“) Consumption growth of over 2%) led by core brand portfolio and international growth EPS of $0.65, down 4.4% us Adjusted!) PY 91, which included profit contribution from Household Cleaning Segment Free Cash Fl
Slide 6: Q1 Revenue of $232.2 million, flat versus PY Q1 on an organic basis
Q1 Revenue of $232.2 million, flat versus PY Q1 on an organic basis(1) – Strong international segment growth led by Australia – Consumption growth(2) in excess of 2% continues to meaningfully outpace revenue growth EPS of $0.65, down 4.4% versus Adjusted(3) PY Q1 which included profit contributi
Slide 7: Organic growth by period
FY 17 FY 18 FY 19 *organic growth; in constant CAD and excludes divestitures and Fleet acquisition
Slide 8: Recent innovation and continued marketing support
Recent innovation driving strong Continued Marketing Support performance at key retailers FY 20 YTD Consumption Growth(2) ~4x 28.0% New Product Innovation 7.3% Category DenTek Dental Guard
Slide 9: II. Financial Overview
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Slide 10: Overall financial performance in-line with expectations
Overall financial performance in-line with expectations in the quarter vs PY Q1 which included Household Cleaning: (1) Needed? − Revenue of $232.2 million, flat vs PY on an organic basis − EPS of $0.65, down 4.4% vs Adjusted (3) PY − Free Cash Flow (3) decrease of 4.9% to $50.8 million Q1 FY 20 Q1
Slide 11: Q1 FY 20 income statement summary
Adj. Op. Inc. $71.5 A&P 6.2% EBITDA Margin 33.7% Check rounding Q1 FY 20 Q1 FY 19 % Chg Organic Revenue(1) flat vs PY Total Revenue $ 232.2 $ 254.0 (8.6%) – Increased consumption among majority of Core OTC brands and (3) Adjusted Gross Margin 134.1 140.8 (4.8%) strong International growth % Margin
Slide 12: Q1 Free Cash Flow of $50.8 million
Q1 Free Cash Flow (3) of $50.8 million, down 4.9% vs PY Q1 FY 20 Q1 FY 19 – PY included Household Cleaning Segment (4.9%) Net Debt at June 30 of $1.8 billion(3); leverage ratio(4) of 5.0x at end of Q1 $20 million debt paydown in Q1 $53.4 $50.8 $28.8 million opportunistic share repurchases in
Slide 13: III. FY Outlook
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Slide 14: FY 20 Outlook
Continue to gain market share with consumers and grow categories for retailers Prestige’s portfolio of need-based brands continues to be well positioned for long-term growth, despite macro headwinds at retail Reported Revenue of $951 to $961 million, Organic Revenue expected to be approximatel
Slide 15: Q&A
QeA PARC First Quarter FY 20 Results Meactncakt. 1S
Slide 16: Footnotes and non-GAAP definitions
(1) Organic Revenue is a Non-GAAP financial measure and is reconciled to the most closely related GAAP financial measure in the attached Reconciliation Schedules and / or our earnings release in the “About Non-GAAP Financial Measures” section. (2) Total company consumption is based on domestic IRI m
Slide 17: Organic revenue reconciliation
Three Months Ended Jun. 30, 2019 2018 (In Thousands) GAAP Total Revenues $ 232,154 $ 253,980 Revenue Growth (8.6%) Adjustments: Revenues associated with divestiture - (19,811) Allocated costs that remain after divestiture - (659) Impact of foreign currency exchange rates - (1,402) Total adjustments
Slide 18: Adjusted gross margin and G&A reconciliation
Three Months Ended Jun. 30, Three Months Ended Jun. 30, 2019 2018 2019 2018 (In Thousands) (In Thousands) GAAP Total Revenues $ 232,154 $ 253,980 GAAP General and Administrative Expense $ 21,706 $ 23,941 GAAP General and Administrative Expense as a Percentage of 9.3% 9.4% GAAP Total Revenue GAAP Gro
Slide 19: EBITDA and adjusted EPS reconciliation
Three Months Ended Jun. 30, Three Months Ended Jun. 30, 2019 2018 2019 2018 (In Thousands) GAAP Net Income $ 33,925 $ 34,466 Net Income EPS Net Income EPS Interest expense, net 25,020 25,940 (In Thousands, except per share data) Provision for income taxes 12,125 11,994 GAAP Net Income $ 33,925 $ 0.6
Slide 20: Free cash flow reconciliation
Three Months Ended Jun. 30, 2019 2018 (In Thousands) GAAP Net Income $ 33,925 $ 34,466 Adjustments: Adjustments to reconcile net income to net cash provided by operating activities as shown in the Statement of Cash Flows 14,857 17,705 Changes in operating assets and liabilities as shown in the 3,995
Slide 21: 2020 projected free cash flow and EPS reconciliation
2020 Projected Free Cash Flow (In millions) Low High Projected FY'20 GAAP Net Cash provided by operating activities Projected FY'20 GAAP EPS $ 2.61 $ 2.68 $ 205 Adjustments: Additions to property and equipment for cash (15) Integration of new logistics provider 0.15 0.15 Projected Non-GAAP Free Cash
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