Prestige Consumer Healthcare Inc. · NYSE:PBH
Prestige Consumer Healthcare — Q4 FY2020 Earnings Presentation
28 slides from Prestige Consumer Healthcare's earnings presentation, May 7, 2020
Slide 1: Review of Fourth Quarter and FY 2020 Results
Exhibit 99.2 Prestige Consumer HEALTHCARE Review of Fourth Quarter and FY 2020 Results May 7, 2020
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 and free cash flow conversion; the Company’s ability to adap
Slide 3: Agenda for Today's Discussion
——————Seeeeee eee en Agenda for Today's Discussion I. Our Top Priorities in a Changing Environment Il. Solid FY20 Financial Results Ill. WelL-Positioned in a Dynamic Environment IV. FY 21 Outlook ae 4Q and Year-End Fiscal ‘20 Results B
Slide 4: Our Top Priorities in a Changing Environment
Our Top Priorities in a Changing Environment Ensure health & safety of employees Robust continuity plans in place across the supply chain Continue brand-building playbook, focused on opportunities Uitelaescelte eo eiaems Adapt to a dynamic consumer environment Disciplined Capital Strateq Continued c
Slide 5: Solid FY20 Financial Results
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Slide 6: Strong Finish to Fiscal '20 in Q4
Strong Finish to Fiscal ‘20 in Q4 consumer stocking in Marc! Adjusted Gross Margin of 59.4%"), up 200 bps us PY driven by mix and volume Adjusted EPS of $0.82°), up 13.9% versus PY Strong cash flow generation of $52.5 million and disciplined capital strategy 4Q and Year-End Fiscal ‘20 Results
Slide 7: FY20 Financial Highlights
FY 20 FY 19 ◼ Revenue of $963.0 million, up 1.3%(1) versus FY 19 on an organic basis – Solid consumption growth of ~3%(2) aided by long-term brand 4.6% building efforts $251.2 $240.2 2.6% 13.9% – Strong growth in international and e-commerce $85.9 $83.7 $0.82 $0.72 ◼ Adjusted EBITDA margin of 34.1%(
Slide 8: Q4 and FY20 Results Summary
Q4 FY 20 Q4 FY 19 % Chg FY 20 FY 19 % Chg ◼ Organic Revenue growth of 1.3%(1) vs prior year Total Revenue $ 251.2 $ 241.0 4.2% $ 963.0 $ 975.8 (1.3%) – Impacted by retailer inventory reductions Adjusted Gross Margin(3) 149.1 138.2 7.9% 561.4 555.7 1.0% % Margin 59.4% 57.4% 58.3% 57.0% ◼ Adjusted Gro
Slide 9: Free Cash Flow and Leverage
Leverage Ratio ◼ FY20 Adjusted Free Cash Flow(3) of $206.8 million $208 $207 $197 $202 – Free Cash Flow conversion of 136% for FY20* ◼ Net Debt(3) at March 31 of ~$1.6 billion; leverage ratio of 4.7x(4) at end of FY20 – $107 million remaining availability on existing credit lines as of March 31st 5.
Slide 10: Well-Positioned in a Dynamic Environment
Ill. Well-Positioned in a Dynamic Environment =. —~Fleet. Summers€ve Dramamine eyes. > fe Cer Gp ag
Slide 11: Fiscal 2020 Accomplishments
Invest for ◼ Brand building continued to drive consumption growth ◼ Successful new product launches across the portfolio Growth ✓ ◼ Continued solid results in International segment ◼ Strong & consistent adjusted free cash flow of Cash $207 million(3) Generation ◼ Execution resulting in capital alloc
Slide 12: Strategy in Place for Long-term Shareholder Value Creation
Strategy in Place for Long-term Shareholder Value Creation Robust Business Continuity Plans Diverse Portfolio of Leading Consumer Healthcare Brands Ability to Adapt to a Dynamic Retail Environment @) Disciplined Capital Allocation 4Q and Year-End Fiscal ‘20 Results
Slide 13: Business continuity and supply chain
Prioritizing health & safety Working closely with Monitoring and while staffing appropriately suppliers to ensure maintaining ample continued supply inventory on critical items and brands
Slide 14: Total Sales by Category
Total Sales by Category #1 Brands Represent Two-Thirds of Total Sales Oral Care Dermatologicals 10% 10% Women’s Health 26% Cough / Cold 11% 12% Eye & 18% Ear Care 12% GI Analgesics Note: Sales reflect FY 20; Excludes other OTC (less than 1%).
Slide 15: Lower and higher opportunity categories
Lower Opportunity Higher Opportunity ◼ Usage rates likely ◼ Incidence rates will ◼ Increased interest impacted by stay- likely remain for cough & cold at-home guidance consistent treatments and feminine care products
Slide 16: Reaching consumers at home
◼ Reaching consumers at ◼ Highlighting at-home usage ◼ Thank you from Clear Eyes, the brand home opportunities that whitens more eyes
Slide 17: eCommerce growth
Multi-Pack Ship Your Cure to Fast pain and fever relief Your Door at the speed of power ◼ More new people on eCommerce Total Solution Pack ◼ Increased media spend at end of March to capture more new users ◼ Incremental consumer interest in omni- channel features like Click-and-Collect *People who ha
Slide 18: Cost savings and brand-building reinvestment
◼ Maintain or grow via ◼ Reinvest savings ◼ Consistent and continuous cost for brand-building leading mid-30s savings growth EBITDA margin profile Note: All figures include adjusted gross margin and EBITDA. See appendix reconciliation tables.
Slide 19: FY21 Outlook
IV. FY 21 Outlook =, : Fleet. Summer’ Eve > s Efferdent (=a BC JI Goody] eyes. MONISTAT Gaviscon
Slide 20: Financial Outlook & Strategy
◼ Business and strategy are well-positioned to weather changing Time-Tested environment Playbook ◼ Focus on brand-building to drive growth ◼ Leverage business model to drive strong free cash flow conversion ◼ Business environment too fluid to enable full-year guidance − Early considerations include
Slide 21: Q&A
QeA 4Q and Year-End Fiscal ‘20 Results
Slide 22: Non-GAAP footnotes
(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 23: Organic Revenue reconciliation
Three Months Ended March 31, Year Ended March 31, 2020 2019 2020 2019 (In Thousands) GAAP Total Revenues $ 251,235 $ 241,026 $ 963,010 $ 975,777 Revenue Growth 4.2% (1.3%) Adjustments: Revenue associated with divestiture - - - (19,811) Allocated costs that remain after divestiture - - - (659) Impact
Slide 24: Gross profit and G&A reconciliation
Three Months Ended March 31, Year Ended March 31, Three Months Ended March 31, Year Ended March 31, 2020 2019 2020 2019 2017 2020 2019 2020 2019 (In Thousands) (In Thousands) GAAP Total Revenues $ 251,235 $ 241,026 $ 963,010 $ 975,777 $ 882,060 GAAP General and Administrative Expense $ 23,584 $ 21,2
Slide 25: EBITDA reconciliation
Three Months Ended March 31, Year Ended March 31, 2020 2019 2020 2019 2017 (In Thousands) GAAP Net Income (Loss) $ 37,046 $ (139,274) $ 142,281 $ (35,800) $ 69,395 Interest expense, net 22,452 25,745 96,224 105,082 93,343 Provision (benefit) for income taxes 13,489 (39,756) 48,870 (2,255) 41,455 Dep
Slide 26: Adjusted net income and EPS reconciliation
Three Months Ended March 31, Year Ended March 31, 2020 2019 2020 2019 Net Income EPS Net Income EPS Net Income EPS Net Income EPS (In Thousands, except per share data) GAAP Net Income (Loss) (a) $ 37,046 $ 0.73 $ (139,274) $ (2.67) $ 142,281 $ 2.78 $ (35,800) $ (0.68) Adjustments: Transition and oth
Slide 27: Free cash flow reconciliation
Three Months Ended March 31, Year Ended March 31, 2020 2019 2020 2019 (In Thousands) GAAP Net Income $ 37,046 $ (139,274) $ 142,281 $ (35,800) Adjustments: Adjustments to reconcile net income (loss) to net cash provided by operating activities as shown in the Statement of Cash Flows 20,056 195,975 6
Slide 28: Annual free cash flow reconciliation
2017 2018 2019 2020 GAAP Net Income $ 69,395 $ 339,570 $ (35,800) $ 142,281 Adjustments Adjustments to reconcile net income to net cash provided by operating activities as shown in the statement of cash flows 92,613 (113,698) 233,400 66,041 Changes in operating assets and liabilities, net of effects
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