Prestige Consumer Healthcare Inc. · NYSE:PBH
Prestige Consumer Healthcare — Prestige Brands Holdings — Q4 FY2013 Earnings Presentation
20 slides from Prestige Consumer Healthcare's earnings presentation, May 16, 2013
Slide 1: Review of Fourth Quarter & FY'13 Results
1 28-75-124 196-18-48 Review of Fourth Quarter & FY’13 Results Matthew M. Mannelly, CEO Ronald M. Lombardi, CFO May 16, 2013 Exhibit 99.2
Slide 2: Safe Harbor Disclosure
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 and promotion, competitive position and strategies, product development a
Slide 3: Agenda
3 Q2 FY2013: Performance Highlights Q4 & Full Year FY’13: Financial Overview Prestige’s Strategy: Delivering Results; Poised for Continued Success 1 2 3 Agenda 4 FY’13: Performance Highlights
Slide 4: Delivering Value Through a Proven Shareholder Value Creation Framework
4 OTC M&A Focus Strong FCF Resulting in Debt Reduction Drive Core OTC Growth A&P Driven Growth for Core OTC Brands Investment in Multi-Year New Product Development Pipeline Select investment in Other Brands High Conversion of EBITDA to Free Cash Flow Free Cash Flow Used for Rapid Debt Pay
Slide 5: Excellent financial performance for the quarter
5 Excellent financial performance for the quarter − Q4 consolidated net revenue of $154.5 million, up 15.3% − Adjusted EPS(1) of $0.36, up 38.5% versus prior year corresponding quarter − Cash flow from Operations of $36.7(5) million − Debt paydown of ~$30 million in Q4 − Leverage ratio(2) reduced
Slide 6: Strong Core OTC Organic Revenue Growth
6 (1) Includes GSK Core Brands Strong Core OTC Organic Revenue Growth PBH Core Cough/Cold Core OTC Non-Cough/Cold Core OTC 3.7% 7.8% 16.7% 4.4% (6.2%) 6.3% 3.2% (1.2%) Timing Impact of Cough/Cold Shipments 11.3% 4.8% 9.3% (1) 5.9%
Slide 7: Consistent Category Outperformance and Market Share Gains
7 Consistent Category Outperformance and Market Share Gains Category 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 impact of re-introduction of the Excedrin brand wh
Slide 8: Digital Initiatives Have Become a More Important Element in our Marketing Mix
8 Digital Initiatives Have Become a More Important Element in our Marketing Mix Brings PBH brands to the top of the list when searching key words “best tasting throat drops” = Revamped Product Websites and Blogs Digital Marketing at Prestige is the fastest-growing segment of our marketing plans, g
Slide 9: Brands Have Digital Initiatives
9 11 Brands Have Digital Initiatives Digital for Core Brands Digital for Non-Core Brands An excellent vehicle for these types of brands, which enables us to convey messages to large numbers of consumers effectively and efficiently A complementary tool to traditional marketing & advertising, and a ke
Slide 10: FY'13 Objectives: Exceeded Expectations
10 FY’13 Objectives: Exceeded Expectations Successfully integrate and transition the acquired brands Exceeded Expectations Exceeded Expectations Active Exceeded Expectations Exceeded Expectations Active Continue to participate in OTC M&A activity as part of on-going portfolio optimization Deve
Slide 11: Agenda
11 Q4 FY’13: Performance Highlights Q1 FY2013: Financial Overview Prestige’s Strategy: Delivering Results; Poised for Continued Success 1 2 3 Agenda 4 and Full Year FY’13: Financial Overview
Slide 12: Q4 Summary Financial Performance
12 Q4 Summary Financial Performance Dollar values in millions, except per share data Notes: (1) These non-GAAP financial measures are reconciled to their most closely related GAAP financial measures in our earnings release in the “About Non-GAAP Financial Measures” section. Adjusted EPS is also reco
Slide 13: Q4 Consolidated Financial Summary
13 Net Revenue grew by ~$21 million, or 15.3%, over year ago, driven by the strong performance of our Core OTC brands – Core Organic OTC growth of 9.3% – Total Organic growth of 3.0% Adjusted gross margin expanded by 4.5 pts. due to higher proportion of Revenue from OTC, including impact of GSK
Slide 14: Full Year FY'13 Consolidated Financial Summary
14 Adjusted Net Revenue grew by $182.9 million, or 41.5%, over year ago, driven by core OTC growth and acquisition of GSK brands(1) – 5.9% growth in PBH and GSK Total core OTC brands – 1.4% total PBH and GSK organic growth Adjusted gross margin expanded by 4.6 pts. due to higher proportion of Re
Slide 15: Q4 FY'13 and Full Year FY'13 Net Income and EPS Reconciliation
15 3 Months Ended 3 Months Ended 12 Months Ended 12 Months Ended Q4 FY'13 Q4 FY'12 Q4 FY'13 Q4 FY'12 Net Income EPS Net Income EPS Net Income EPS Net Income EPS As Reported 19.3$ 0.37$ (0.0)$ -$ 65.5$ 1.27$ 37.2$ 0.73$ Adjustments: Loss on Extinguishment of Debt 1.4 0.03 5.4 0.11 1.4 0.03 5.4 0.11 G
Slide 16: YTD FY'13 Cash Flow from Operations; Debt Profile
16 YTD FY’13 Cash Flow from Operations Cash Flow Comments Dollar values in millions (1) Leverage ratio reflects net debt / covenant defined EBITDA. Debt Profile & Financial Compliance: Total Net Debt at 3/31/13 of $962 million comprised of: – Cash on hand of $16 million – $445 million of term loan
Slide 17: Agenda
17 Q4 FY’13: Performance Highlights Q4 and Full Year FY’13: Financial Overview Prestige’s Strategy: Delivering Results; Poised for Success 1 2 3 Agenda ’ lt ; r Continued Success
Slide 18: Strong FY Results; FY14 Focus and Challenges
18 Strong FY 13 Results: Continue to build a solid foundation Proven strategy and management team in place for long-term value creation FY 14 Focus Continue brand-building through new marketing campaigns (including Clear Eyes, BC, Goody’s, Beano) Deeper engagement with consumer through Dig
Slide 19: Webcast and Investor Day
19 Webcast is accessible via the Investor Relations section of our website, http://prestigebrands.com. Choose the “Click Here for Access” hyperlink and register for access. Investor Day is May 22nd at 10:30 am ET
Slide 20: 28-75-124 196-18-48 May 16, 2013
20 28-75-124 196-18-48 May 16, 2013
Prestige Brands Holdings — Q4 FY2013 Earnings Presentation on 6ix