Energizer Holdings, Inc. · NYSE:ENR
Energizer — Q3 2019 Earnings Presentation
22 slides from Energizer's earnings presentation, Aug 6, 2019
Slide 1: Third Quarter Fiscal 2019 Supplemental Financial Information
Third Quarter Fiscal 2019 Supplemental Financial Information August 6, 2019 Exhibit 99.2
Slide 2: Key Headlines
Key Headlines * See non-GAAP reconciliations in the Appendix. Reaffirming Adjusted Diluted EPS from continuing operations, Adjusted EBITDA and Adjusted Free Cash Flow* Reported Net sales increased 64.8% to $647.2 million due to the impact of acquisitions and organic revenue growth of 3.6%* Adjusting
Slide 3: Third Quarter Fiscal Year 2019 Results
Third Quarter Fiscal Year 2019 Results
Slide 4: Third Quarter 2019 Financial Headlines: Key Financial Highlights
Third Quarter $126.8 million, margin 19.6% First nine months $388.6 million, margin 21.9% First nine months $137.6 million, down due to increased working capital due to seasonal auto care sales and increased inventory, which will be addressed in the fourth quarter $3.3 billion Credit defined net lev
Slide 5: Third Quarter 2019 Financial Headlines
Gross margin, excluding acquisition and integration costs, was 40.0% Down 480 bps from prior year, primarily driven by the lower margin rate profile of the acquisitions Legacy gross margin improved excluding currency headwinds A&P was 5.3% of net sales Legacy A&P was 5.8% of net sales, essentially f
Slide 6: Adjusted EPS Bridge
On a reported basis, EPS was earnings of $0.39 in Q3 2018 and of $0.07 in Q3 2019. See the Non-GAAP reconciliation in the Appendix. Adjusted EPS Bridge Third Quarter 2019 Financial Headlines Deal Related Impacts
Slide 7: Other Financial Considerations
Interest expense, was $51.9, up $37.6 from the prior year excluding prior year acquisition costs of $3.4 million Increase due to higher debt related to the acquisitions Interest Expense Non-GAAP Tax rate of 20.4% compared to 23.6% in the prior year Decrease due to lower U.S. tax rates and country mi
Slide 8: Impact of Integration and Acquisition Costs
$17.5 million Integration Costs $6.5 million Inventory Step-Up related to purchase accounting $4.0 million of other deal related costs Q3 2019 $28.0 Million $63 million Integration Costs $182 million Interest Expense, Outside Legal & Advisory Fees, Inventory Step-Up, Interest income and FX hedge ben
Slide 9: Fiscal Year 2019 Outlook
Fiscal Year 2019 Outlook
Slide 10: Fiscal 2019 Outlook: Key Financial Highlights
$540 to $560 million, up 35% to 40% Margin of approximately 22% $220 to $250 million $2.9 to $3 billion, upon closing of the Varta divestiture Credit defined net leverage ratio of approximately 4.7 times, upon closing of the Varta divestiture Fiscal 2019 Outlook Key Financial Highlights METRIC Fisca
Slide 11: Fiscal 2019 Outlook
42.5% to 42.9%; down 330 to 370 bps, excluding acquisition and integration costs Acquisition lower margin profiles -340 bps Legacy business operational improvements fully offset currency headwinds 5% of Net Sales Legacy business expected to remain around 6.5% Acquisitions are both at a lower A&P per
Slide 12: Fiscal 2019 Outlook
$210 to $217 million $160 million 21% to 23% $2.90 - $3.00 Common share dividends of approximately $85 million Preferred share dividends of approximately $12 million Fiscal 2019 Outlook METRIC Fiscal 2019 Outlook Dividends Adjusted EPS * Adjusted Net Earnings * Non-GAAP Tax Rate Interest Expense * S
Slide 13: Fiscal 2019 Outlook: Other Metrics
Acquisition costs - $125 to $130 million Integration costs - $45 to $55 million Preferred Stock Impact Other Key Financial Metrics Amortization $45 million Depreciation $54 to 58 million Stock Compensation $28 million Capital Spending of approximately $60 million, including integration capital $100
Slide 14: Fiscal Year 2020 Outlook
Fiscal Year 2020 Outlook PRESENTATION NAME DATE Fiscal Year 2020 planning process is underway and the full outlook will be updated in November. Key trends in advance of November: Battery and Lighting Products, 80% of total revenues, is stable and growing and inline with the previous outlook for Fisc
Slide 15: Forward-Looking Statements
Energizer Holdings, Inc. (the “Company”) and its management may make certain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historic
Slide 16: Important Presentation Information
Important Presentation Information The information contained herein is preliminary and based on Company data available at the time of the earnings presentation. It speaks only as of the particular date or dates included in the accompanying slides. The Company does not undertake an obligation to, and
Slide 17: Appendix
Appendix
Slide 18: Non-GAAP Reconciliations – Q3 Key Financial Metrics
Non-GAAP Reconciliations – Q3 Key Financial Metrics (amounts in millions) PRESENTATION NAME DATE EBITDA is defined as net earnings before income tax provision, interest and depreciation and amortization. Adjusted EBITDA further excludes the impact of the costs related to acquisition and integration
Slide 19: Non-GAAP Reconciliation – Q3 2019 Revenue
Non-GAAP Reconciliation – Q3 2019 Revenue (amounts in millions) PRESENTATION NAME DATE Organic revenue is the non-GAAP financial measurement of the change in revenue that excludes or otherwise adjusts for the impact of acquisitions, change in Argentina and impact of currency from the changes in fore
Slide 20: Non-GAAP Reconciliations – Gross Margin and SG&A
Non-GAAP Reconciliations – Gross Margin and SG&A (amounts in millions) Adjusted Gross Margin and SG&A as a percent of sales exclude the impact of costs related to acquisition and integration.
Slide 21: Non-GAAP Reconciliations – Q3 2019 EPS
Non-GAAP Reconciliations – Q3 2019 EPS (amounts in millions) Adjusted Net Earnings From Continuing Operations and Adjusted Diluted Net Earnings Per Share From Continuing Operations (EPS) exclude the impact of the costs related to acquisition and integration and the one-time impact of the new U.S. in
Slide 22: Non-GAAP Reconciliations – 2019 Outlook
The Company is unable to provide a reconciliation to the full year 2019 Adjusted free cash flow range of approximately $220 to $250 million to comparable GAAP measures, due to uncertainty regarding the timing and amount of future acquisition and integration costs and related payments. Non-GAAP Recon