Prestige Consumer Healthcare Inc. · NYSE:PBH
Prestige Consumer Healthcare — Prestige Brands Holdings — Q3 FY2018 Earnings Presentation
26 slides from Prestige Consumer Healthcare's earnings presentation, Feb 1, 2018
Slide 1: Review of Third Quarter FY 18 Results
Exhibit 99.2 a Ly PrestigeBrands ay Review of Third Quarter FY 18 Results PURE February 1, 2018 ‘tel F a PRESERVATIE r 4 - < % ne
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 revenue growth, adjusted EPS, and adjusted free cash flow; the Company’s ab
Slide 3: Agenda for Today's Discussion
Agenda for Today's Discussion |. Performance Highlights Il. Financial Overview Ill. FY 18 Outlook and the Road Ahead
Slide 4: I. Performance Highlights
I. Performance Highlights
Slide 5: Strong Financial Performance in Third Quarter FY 18
Strong Financial Performance in Third Quarter FY 18 Te Lea Third Quarter FY 18 Results PrestigeBrands_ ;
Slide 6: Q3 Revenue of $270.6 million, up 24.8%
Q3 Revenue of $270.6 million, up 24.8% versus PY Q3 Revenue increase of 2.0%(1) pro forma for the Fleet acquisition – As expected, Q3 average shipment times reverted to historical levels Solid total company consumption growth of 2.4%(2) exceeded shipment growth Adjusted EPS of $0.70(3), up v
Slide 7: Strong Financial Performance in YTD FY 18
Strong Financial Performance in YTD 93 FY 18 Solid consump! the acquisition of Fleet Adjusted EPS of $1.97°), up 7.7% versus YTD 93 FY 17 Adjusted Free Cash Flow of $156.2 million®), up 4.1% versus YTD 93 FY 17 cal debt paydown of $145 million ee réstigeBrands Third Quarter FY 18 Results
Slide 8: Differentiated Consumer Engagement and Formulation
Differentiated Consumer Engagement Differentiated Formulation New Products That Enhance Consumer Experience New Products That Enhance Efficacy
Slide 9: Long-Term Brand-Building Toolkit
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, Dramamine, Beano, Fleet, Boudreaux’s, Little Remedies, The Doctor’s, Efferdent, Chloraseptic, Luden’s, Debrox, Comp
Slide 10: II. Financial Overview
ll. Financial Overview
Slide 11: Solid financial performance in Q3 and YTD Q3 FY 18
Solid financial performance in Q3 and YTD Q3 FY 18: − Q3 Revenue of $270.6 million, an increase of 24.8% vs prior year − Q3 Adjusted EBITDA(3) of $93.0 million, an increase of 24.1% vs prior year − Q3 Adjusted EPS of $0.70(3), an increase of 14.8% vs prior year $270.6 $93.0 $216.8 $74.9 Total Reve
Slide 12: Q3 FY 18 Income Statement Summary
Q3 FY 18 Q3 FY 17 % Chg Q3 FY 18 Q3 FY 17 % Chg Total Revenue 270.6$ 216.8$ 24.8% 785.2$ 641.4$ 22.4% Adjusted Gross Margin 147.7 124.5 18.6% 439.0 370.1 18.6% % Margin 54.6% 57.5% 55.9% 57.7% Adjusted A&P 35.8 30.7 16.8% 112.2 86.9 29.1% % Total Revenue 13.2% 14.2% 14.3% 13.6% Adjusted G&A 20.1 18.
Slide 13: Adjusted Free Cash Flow and Net Debt
$156.2 $149.9 Adjusted Free Cash Flow $44.8 $49.6 Adjusted Free Cash Flow Q3 Adjusted Free Cash Flow impacted by timing of Capital Expenditures in Q3 vs prior year Net Debt(3) at December 31 of $2,032 million; leverage ratio(4) of 5.4x at end of Q3 Total debt reduction of $40 million in Q3 and
Slide 14: Tax Reform Impact
Net deferred tax liability revalued in Q3 using the new tax rates, resulting in a one-time non-cash tax benefit of $278 million Expect de minimis impact in Q4 Expect de minimis benefit in Q4 FY 18 blended annual rate of approximately 31% to 32% FY 19 effective tax rate of approximately 26%
Slide 15: III. FY 18 Outlook and the Road Ahead
Ill. FY 18 Outlook and the Road Ahead
Slide 16: FY 18 Outlook
Continued solid consumption trends in-line with long-term outlook Continue to gain share across portfolio Well positioned for long-term growth despite continued headwinds at retail Dollar values in millions, except per share data. Revenue of $1,040 to $1,060 million — Growth of +18% to +20%
Slide 17: Appendix
er Third Quarter FY 18 Results PrestigeBrands :7
Slide 18: Non-GAAP footnotes
(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 earnings release in the “About Non-GAAP Financial Measures” section. (2) Total company co
Slide 19: Organic and Proforma Revenue Reconciliation
Three Months Ended Dec. 31, Nine Months Ended Dec. 31, 2017 2016 2017 2016 (In Thousands) GAAP Total Revenues $ 270,615 $ 216,763 $ 785,214 $ 641,390 Revenue Growth 24.8% 22.4% Adjustments: Revenue associated with acquisitions (54,143) - (160,692) - Revenues associated with divested brands - (5,921)
Slide 20: Adjusted Gross Margin Reconciliation
Three Months Ended Dec. 31, Nine Months Ended Dec. 31, 2017 2016 2017 2016 (In Thousands) GAAP Total Revenues $ 270,615 $ 216,763 $ 785,214 $ 641,390 GAAP Gross Profit $ 147,674 $ 124,547 $ 435,248 $ 370,103 Adjustments: Integration, transition and other costs associated with acquisitions - - 3,719
Slide 21: Adjusted Advertising and Promotion Reconciliation
Three Months Ended Dec. 31, Nine Months Ended Dec. 31, 2017 2016 2017 2016 (In Thousands) GAAP Advertising and Promotion Expense $ 35,835 $ 30,682 $ 111,967 $ 86,909 GAAP Advertising and Promotion Expense as a Percentage of GAAP Total Revenue 13.2% 14.2% 14.3% 13.6% Adjustments: Integration, transit
Slide 22: Adjusted G&A Reconciliation
Three Months Ended Dec. 31, Nine Months Ended Dec. 31, 2017 2016 2017 2016 (In Thousands) GAAP General and Administrative Expense 21,207$ 22,131$ 63,110$ 60,383$ GAAP General and Administrative Expense as a Percentage of GAAP Total Revenue 7.8% 10.2% 8.0% 9.4% Adjustments: Integration, transition an
Slide 23: EBITDA Reconciliation
Three Months Ended Dec. 31, Nine Months Ended Dec. 31, 2017 2016 2017 2016 (In Thousands) GAAP Net Income 314,793$ 31,641$ 379,257$ 58,305$ Interest expense, net 25,864 18,554 79,041 60,511 (Benefit) provision for income taxes (257,154) 19,092 (219,609) 33,743 Depreciation and amortization 8,340 5,8
Slide 24: Adjusted EPS Reconciliation
Three Months Ended Dec. 31, Nine Months Ended Dec. 31, 2017 2016 2017 2016 Net Income EPS Net Income EPS Net Income EPS Net Income EPS (In Thousands, except per share data) GAAP Net Income 314,793$ 5.88$ 31,641$ 0.59$ 379,257$ 7.08$ 58,305$ 1.09$ Adjustments: Integration, transition and other costs
Slide 25: Free Cash Flow Reconciliation
Three Months Ended Dec. 31, Nine Months Ended Dec. 31, 2017 2016 2017 2016 (In Thousands) GAAP Net Income $ 314,793 $ 31,641 $ 379,257 $ 58,305 Adjustments: Adjustments to reconcile net income to net cash provided by operating activities as shown in the Statement of Cash Flows (260,426) 3,978 (216,9
Slide 26: 2018 Projected EPS and Free Cash Flow Reconciliation
2018 Projected EPS Low High Projected FY'18 GAAP EPS $ 7.69 $ 7.79 Adjustments: Costs associated with Fleet integration 0.12 0.12 Tax adjustment (5.23) (5.23) Total Adjustments (5.11) (5.11) Projected Non-GAAP Adjusted EPS $ 2.58 $ 2.68 2018 Projected Free Cash Flow (In millions) Projected FY'18 GAA
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