Prestige Consumer Healthcare Inc. · NYSE:PBH
Prestige Consumer Healthcare — Q2 FY2020 Earnings Presentation
22 slides from Prestige Consumer Healthcare's earnings presentation, Oct 31, 2019
Slide 1: Second Quarter FY 2020 Results
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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
Agenda for Today's Discussion I. Performance Highlights II. Financial Oueruiew Ill. FY 20 Outloo� p� Second �u arter FY 20 Results HEALTHCARE 3
Slide 4: I. Performance Highlights
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Slide 5: Q2 performance highlights
◼ Q2 Revenue of $238.1 million, flat versus prior year on an organic basis (1) – Strong growth in international segment driven by Canada and Australia – Consumption growth(2) of 2% continues to meaningfully outpace revenue growth ◼ Adjusted EPS(3) of $0.68, up 4.6% versus Adjusted(3) prior year Q2 ◼
Slide 6: Strong Financial Performance in First Half FY20
Strong Financial Performance in First Half FY 20 3 AdjustedEPS of $1.33( ), flat uersus prior year due to the Household Cleaning sole Adjusted Free Cash Flow(3) of $98.0 million Enabling Efficient Capitol Allocation p� Second Qu arter FY 20 Results H£ALTHCARE 6
Slide 7: Category Leadership with Upside Opportunity
Category Leadership with Upside Opportunity Time-Tested Brand Building Playbook TV Sampling ◼ Leading category position ◼ Focused on driving increased adoption ◼ Significant addressable market opportunity 50% of Women Willing to Try Feminine Hygiene Products Potential: +35% Whitespace Opportunity *I
Slide 8: Boudreaux's Case Study: Comprehensive & Evolving E-Commerce Strategy
E-Commerce as a % of Net Sales Boudreaux’s Case Study: Comprehensive & Evolving E-Commerce Strategy ◼ Proactive investment in E-Commerce behind well positioned brands ◼ Early mover advantage in channel ◼ Resulting share many times above large brick & mortar competitors +~5x 70% 3-Year Average CAGR i
Slide 9: II. Financial Overview
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Slide 10: Overall financial performance as expected in the quarter
◼ Overall financial performance as expected in the quarter: − Q2 Revenue of $238.1 million, flat organically(1) vs prior year − Q2 Adjusted EBITDA(3) of $77.1 million − Q2 Adjusted EPS(3) of $0.68, an increase of 4.6% vs prior year, and YTD FY 20 Adjusted EPS(3) of $1.33 Q2 FY 20 Q2 FY 19 YTD FY 20
Slide 11: Q2 income statement summary
Q2 FY 20 Q2 FY 19 % Chg Q2 FY 20 Q2 FY 19 % Chg ◼ Organic revenue growth Total Revenue $ 238.1 $ 239.4 (0.5%) $ 470.2 $ 493.3 (4.7%) approximately flat vs prior year(1) (3) Adjusted Gross Margin 138.2 137.5 0.5% 272.2 278.3 (2.2%) – Continued destocking at % Margin 58.0% 57.4% 57.9% 56.4% retailers
Slide 12: Net debt, leverage and free cash flow
◼ Net Debt(3) at September 30 of $1.7 billion; leverage (4) Q2 FY 20 Q2 FY 19 1H FY 20 1H FY 19 ratio of 5.0x at end of Q2 – Target leverage ratio(4) of 4.7x if remaining year 0.3% free cash flow is used for debt paydown ◼ Completed $50 million opportunistic share $98.0 $97.7 repurchase program in Q
Slide 13: III. FY20 Outlook
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Slide 14: FY20 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 continued inventory reduction at retail ◼ Expect continued strong international performance ◼ Reported Revenue of
Slide 15: Second Quarter FY 2020 Results
p� rst Qu arter FY 20 Results H£ALTHCARE 1 5
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 Sept. 30, Six Months Ended Sept. 30, 2019 2018 2019 2018 (In Thousands) GAAP Total Revenues $ 238,069 $ 239,357 $ 470,223 $ 493,337 Revenue Growth (0.5%) (4.7%) Adjustments: Revenue associated with divestiture - - - (19,811) Allocated costs that remain after divestiture - - - (659
Slide 18: Adjusted G&A and gross margin reconciliation
Three Months Ended Sept. 30, Six Months Ended Sept. 30, Three Months Ended Sept. 30, Six Months Ended Sept. 30, 2019 2018 2019 2018 2019 2018 2019 2018 (In Thousands) (In Thousands) GAAP Total Revenues $ 238,069 $ 239,357 $ 470,223 $ 493,337 GAAP General and Administrative Expense $ 22,514 $ 24,034
Slide 19: EBITDA reconciliation
Three Months Ended Sept. 30, Six Months Ended Sept. 30, 2019 2018 2019 2018 (In Thousands) GAAP Net Income $ 33,252 $ 30,841 $ 67,177 $ 65,307 Interest expense, net 24,477 27,070 49,497 53,010 Provision for income taxes 10,760 12,678 22,885 24,672 Depreciation and amortization 7,222 7,994 14,283 16,
Slide 20: Adjusted net income and EPS reconciliation
Three Months Ended Sept. 30, Six Months Ended Sept. 30, 2019 2018 2019 2018 Net Income EPS Net Income EPS Net Income EPS Net Income EPS (In Thousands, except per share data) GAAP Net Income $ 33,252 $ 0.65 $ 30,841 $ 0.59 $ 67,177 $ 1.31 $ 65,307 $ 1.24 Adjustments: Transition and other costs associ
Slide 21: Free cash flow reconciliation
Three Months Ended Sept. 30, Six Months Ended Sept. 30, 2019 2018 2019 2018 (In Thousands) GAAP Net Income $ 33,252 $ 30,841 $ 67,177 $ 65,307 Adjustments: Adjustments to reconcile net income to net cash provided by operating activities as shown in the Statement of Cash Flows 14,039 5,349 28,896 23,
Slide 22: FY20 projected EPS and free cash flow reconciliation
2020 Projected Free Cash 2020 Projected EPS Flow Low High (In millions) Projected FY'20 GAAP EPS $ 2.61 $ 2.68 Projected FY'20 GAAP Net Cash provided by operating activities $ 205 Adjustments: Additions to property and equipment for cash (15) Integration of new logistics provider (a) 0.15 0.15 Proje
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