Prestige Consumer Healthcare Inc. · NYSE:PBH
Prestige Consumer Healthcare — Prestige Brands Holdings — William Blair Growth Stock Conference 2018
30 slides from Prestige Consumer Healthcare's conference presentation, Jun 13, 2018
Slide 1: William Blair Growth Stock Conference
William Blair Growth Stock Conference June 13, 2018 Exhibit 99.1
Slide 2: Safe Harbor Disclosure
William Blair Growth Stock Conference 2 Safe Harbor Disclosure This presentation contains certain “forward - looking” statements within the meaning of the Private Securities Litigation Reform A ct of 1995, such as statements regarding the Company’s expected financial performance, including revenue g
Slide 3: Contents
William Blair Growth Stock Conference 3 Contents I. Who is Prestige Brands? II. Value Creation Model III. Financial Review and Outlook Ron Lombardi Chairman & Chief Executive Officer Christine Sacco Chief Financial Officer Phil Terpolilli Director, Investor Relations Attendees
Slide 4: I. Who is Prestige Brands?
|. Who is Prestige Brands? Fleet. Summersve Dramamine . iP erent Car @ MONISTAT (aan
Slide 5: Helping Consumers Care for Themselves
William Blair Growth Stock Conference 5 Source: Company records Helping Consumers Care for Themselves infections treated annually
Slide 6: Diversified Portfolio of Leading, Trusted Brands
William Blair Growth Stock Conference 6 Diversified Portfolio of Leading, Trusted Brands Source: LTM Revenues Note: E xcludes other OTC (less than 1%) 25% 15% 12% 11% 11% 10% 9% 8% Women’s Health Gastrointestinal Analgesics Eye & Ear Care Cough & Cold Household Cleaning Oral Care Dermatologicals
Slide 7: Our Portfolio of Invest-for-Growth OTC Brands
William Blair Growth Stock Conference 7 Source: IRI MULO+C - Store period ending March 25 , 201 8 ; Retail Dollar Sales Our Portfolio of Invest - for - Growth OTC Brands Power Core $100MM+ Brands Core International
Slide 8: Five "Power Core" Brands Average Over $150MM at Retail
William Blair Growth Stock Conference 8 Five “Power Core” Brands Average Over $150MM at Retail FY 13 Today Average $150MM+ Average $90MM +1.6x Source: IRI MULO+C - Store (Retail Dollar Sales). 50%+ of PBH Business Future Leading brands well - positioned in evolving environment Execute brand - bu
Slide 9: Platform Positioned for Long-Term Success
William Blair Growth Stock Conference 9 $ Platform Positioned for Long - Term Success History of Share Gains & Growth 78% (1) Strong Brands Across 8+ Categories OTC Brands Generate Solid, Durable Cash Flows Leading Platform in Unique OTC Aisle
Slide 10: II. Value Creation Model
ll. Value Creation Model Fleet. Summersve Dramamine m iP erent Car @ MONISTAT (aan
Slide 11: Proven, Consistent & Repeatable Strategy
William Blair Growth Stock Conference 11 Industry - leading financial profile Best - in - class ongoing FCF generation Enables capital allocation opportunities Completed 5 acquisitions since CY 20 1 3 Continue to seek strategic M&A Authorized $50 million stock buyback completed Proven, C
Slide 12: Proven, Consistent & Repeatable Strategy
William Blair Growth Stock Conference 12 Proven, Consistent & Repeatable Strategy Near - term Considerations Long - term Positioning Positioned for long - term 2% to 3% Organic growth Brand building to drive long - term success Category leading, trusted brands Continued portfolio growth via
Slide 13: With a Resilient Position in an Evolving Retail Environment
William Blair Growth Stock Conference 13 … W ith a Resilient Position in an Evolving Retail Environment Category Leading, Trusted Brands On Trend & Innovative Retail Traffic Driver E - Commerce Brand of Choice #1 share brands represent ~60% of sales Brands drive long - term category growth Con
Slide 14: Brand-Building That Drives Category Growth and Share Gains
William Blair Growth Stock Conference 14 … and Brand - Building That Drives Category Growth and Share Gains Long - Term Brand - Building Toolkit * IRI MULO Data as of calendar year - end 2017; Categories include those pertaining to PBH’s core brands (SE, Monistat, BC / Goody’ s, Clear Eyes, DenTek,
Slide 15: BC & Goody's: Continuing Our Long-Term Brand Building Playbook
William Blair Growth Stock Conference 15 BC & Goody’s: Continuing Our Long - Term Brand Building Playbook Only p owdered analgesic brands Expanded distribution Brand extensions into cough/cold with BC Sinus Launch Significant support at retail by leveraging strategic partnerships Brand Succe
Slide 16: High Free Cash Flow Generation
William Blair Growth Stock Conference 16 Near - term Considerations Long - Term Positioning High Free Cash Flow Generation o Portfolio drives high EBITDA margins o Strong FCF conversion (minimal capex , tax attributes) A&P reinvestment to drive top - line growth Maintain approximate mid - 30s
Slide 17: Strong and Consistent Cash Flow Leads to Rapid De-Levering
William Blair Growth Stock Conference 17 ~5.0x ~4.3x ~4.3x ~5.2x ~5.0x ~5.7x ~5.2x ~4.7x FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY19 Leverage Ratio (4) $67 $127 $131 $165 $185 $197 $208 $215+ FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY19 Strong and Consistent Cash Flow Leads to Rapid De - Leveri
Slide 18: Key Drivers of Long-Term Shareholder Value
William Blair Growth Stock Conference 18 3 Key Drivers of Long - Term Shareholder Value Capital Deployment Capital Deployment Completed 5 acquisitions since CY 20 1 3 Continue to seek strategic M&A Authorized $50 million stock buyback completed Capital Allocation Share Repurchases 3 Pursue M&A
Slide 19: III. Financial Review and FY Outlook
III. Financial Review and FY 19 Outlook
Slide 20: Strategy Has Delivered Consistently Strong Financial Performance
William Blair Growth Stock Conference 20 $67 $131 $185 $208 FY 12 FY 14 FY 16 FY 18 $134 $204 $289 $355 FY 12 FY 14 FY 16 FY 18 $438 $597 $806 $1,041 FY 12 FY 14 FY 16 FY 18 Strategy Has Delivered Consistently Strong Financial Performance 15.5% CAGR 17.6% CAGR 20.8% CAGR Adjusted EBITDA (3) Net Sale
Slide 21: Strong Financial Performance in FY 2018
William Blair Growth Stock Conference 21 Strong Financial Performance in FY 18 Revenue of $1,041 million, up 18.0% versus FY 17 Adjusted EPS of $2.58 (3) , up 8.9% versus FY 17 Adjusted Free Cash Flow of $ 208 million (3) , up 5.7% versus FY 17 Solid consumption growth of 2.9 % (2) outpaced revenue
Slide 22: FY 2019 Full Year Outlook
William Blair Growth Stock Conference 22 FY 19 Full Year Outlook: Staying the Strategic Course to Create Value Continue to gain market share with consumers and grow categories with retailers Prestige’s portfolio of need - based brands continues to be well positioned for future long - term growth
Slide 23: Continuing Our Long-Term Value Creation Strategy
William Blair Growth Stock Conference 23 Continuing Our Long - Term Value Creation Strategy Strong and Consistent Free Cash Flow Generation Long - Term Topline Organic Growth of 2 .0% to 3.0% Efficient and Value - Maximizing Capital Allocation Shareholder Value Enhancement Long - Term E.P.S. Growth
Slide 24: Appendix
William Blair Growth Stock Conference 24 Appendix (1) Organic Revenue Growth and Proforma Revenue Growth are Non - GAAP financial measures and are reconciled to the most closely related GAAP financial measure in the attached Reconciliation Schedules and / or our May 10, 2018 earnings release in the
Slide 25: Organic Revenue Growth Reconciliation Schedules
William Blair Growth Stock Conference 25 Organic Revenue Growth Reconciliation Schedules Three Months Ended Mar. 31, Year Ended Mar. 31, 2018 2017 2018 2017 (In Thousands) GAAP Total Revenues $ 255,965 $ 240,670 $ 1,041,179 $ 882,060 Revenue Growth 6.4% 18.0% Adjustments: Revenue associated with acq
Slide 26: Adjusted Free Cash Flow Reconciliation Schedules
William Blair Growth Stock Conference 26 Adjusted Free Cash Flow Reconciliation Schedules Cont’d Three Months Ended Mar. 31, Year Ended Mar. 31, 2018 2017 2018 2017 (In Thousands) GAAP Net Income (Loss) (39,687)$ 11,090$ 339,570$ 69,395$ Adjustments: Adjustments to reconcile net income (loss) to net
Slide 27: Adjusted Net Income and Adjusted EPS Reconciliation Schedules
William Blair Growth Stock Conference 27 Adjusted Net Income and Adjusted EPS Reconciliation Schedules Cont’d Three Months Ended Mar. 31, Year Ended Mar. 31, 2018 2017 2018 2017 Net Income EPS Net Income EPS Net Income EPS Net Income EPS (In Thousands, except per share data) GAAP Net Income (Loss) $
Slide 28: Reconciliation Schedules: Adjusted Free Cash Flow
William Blair Growth Stock Conference 28 Reconciliation Schedules Cont’d Dollar values in thousands. Adjusted Free Cash Flow 2012 2013 2014 2015 2016 2017 2018 GAAP Net Income 37,212$ 65,505$ 72,615$ 78,260$ 99,907$ 69,395$ 339,570$ Adjustments Adjustments to reconcile net income to net cash provide
Slide 29: Reconciliation Schedules: Adjusted Net Income and Adjusted EPS
William Blair Growth Stock Conference 29 Reconciliation Schedules Cont’d Adjusted Net Income and Adjusted EPS 2012 2013 2014 2015 2016 2017 2018 Net Income EPS Net Income EPS Net Income EPS Net Income EPS Net Income EPS Net Income EPS Net Income EPS GAAP Net Income 37,212$ 0.73$ 65,505$ 1.27$ 72,615
Slide 30: Reconciliation Schedules: Adjusted EBITDA
William Blair Growth Stock Conference 30 Reconciliation Schedules Cont’d Dollar values in thousands. Adjusted EBITDA 2012 2013 2014 2015 2016 2017 2018 GAAP Net Income (Loss) 37,212$ 65,505$ 72,615$ 78,260$ 99,907$ 69,395$ 339,570$ Interest Expense, net 41,320 84,407 68,582 81,234 85,160 93,343 105,
Prestige Brands Holdings — William Blair Growth Stock Conference 2018 on 6ix