Prestige Consumer Healthcare Inc. · NYSE:PBH

Prestige Consumer Healthcare — Prestige Brands Holdings — Q1 FY2015 Earnings Presentation

27 slides from Prestige Consumer Healthcare's earnings presentation, Aug 7, 2014

  1. Slide 1: Review of First Quarter F'15 Results

    P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 5 R e s u l t s 1 Review of First Quarter F’15 Results Matt Mannelly, CEO & President Ron Lombardi, CFO August 7, 2014 Exhibit 99.2

  2. Slide 2: Safe Harbor Disclosure

    P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 5 R e s u l t s 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, competitive position, prod

  3. Slide 3: Agenda for Today's Discussion

    P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 5 R e s u l t s 3 Agenda for Today’s Discussion I. First Quarter FY2015: Performance Highlights II. First Quarter FY2015: Financial Overview III. Updated Perspective on the M&A Market IV. FY2015 Outlook and the Road Ahead

  4. Slide 4: I. First Quarter FY2015: Performance Highlights

    P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 5 R e s u l t s 4 I. First Quarter FY2015: Performance Highlights

  5. Slide 5: Solid Start to the Fiscal Year

    P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 5 R e s u l t s 5 Solid Start to the Fiscal Year  Q1 consolidated net revenue of $145.7 million, up 2.2% versus the prior year  Adjusted E.P.S. of $0.41(1), up 2.5% versus the prior year corresponding quarter  Strong Free Cash Flow of $29.

  6. Slide 6: Improved Consumption Performance in Q1

    P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 5 R e s u l t s 6 Transitional Market 6.9% 10.5% 6.9% 6.4% 0.8% (4.2%) (8.1%) (8.2%) (1.8%) Q1 Q2 Q3 Q4 Q1 3.6% 0.2% (1.7%) (0.7%) 2.5% Core OTC Consumption Growth Source: Latest 12-week IRI multi-outlet retail dollar sales growth for relevan

  7. Slide 7: Three Consecutive Quarters of Consumption Growth Outpacing Shipments

    P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 5 R e s u l t s 7 …And Three Consecutive Quarters of Consumption Growth Outpacing Shipments… Source: Latest 12-week IRI multi-outlet retail dollar sales growth for relevant quarter. Note: Data reflects retail dollar sales percentage growth ve

  8. Slide 8: Leading to Record Market Share Gains

    P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 5 R e s u l t s 8 Core OTC Market Share(1) Source: IRI multi-outlet retail dollar sales growth for relevant quarter. Note: Data reflects retail dollar sales market share. (1) Excludes PediaCare, Little Remedies and Beano. …Leading to Record M

  9. Slide 9: Luden's: Driving Growth on a Year Old Brand

    P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 5 R e s u l t s 9 Luden’s: Driving Growth on a 130 Year Old Brand 2010 2013 Source: IRI MULO + C-Store, 52 weeks ending 31-Dec-2013. Note: Data reflects retail dollar sales.  Strong equity rooted in great tasting, soothing relief  Minimal i

  10. Slide 10: Luden's Brand Building: Model in Action

    P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 5 R e s u l t s 1 0 Luden’s Brand Building: Model in Action Investment in Brand Building Product Innovation  Print and digital advertising to re-ignite awareness  Packaging transformation to modernize the brand  Merchandising enhanced in-s

  11. Slide 11: Digital and Social Media: An Investment for the Future

    P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 5 R e s u l t s 1 1 FY12 FY13 FY14 FYTD15 Investment Focus “Basics” Social media and sponsorships Mobile activation Leveraging “Big Data” % of A&P <5% ~5% ~10% ~15% PBH Revenue Growth Digital and Social Media: An Investment for the Future

  12. Slide 12: Digital Engagement Drives Brand Relevance and Sales

    P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 5 R e s u l t s 1 2 Brand Activation Results  Targeted travel-oriented shoppers and websites with online advertising  Drove consumption +9.2% in L-12  Crowdsourcing consumer feedback of new product ideas  Launched 3 new flavors  Identifi

  13. Slide 13: Location-Based, Real-Time Mobile Marketing is the Future

    P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 5 R e s u l t s 1 3 Location-Based, Real-Time Mobile Marketing is the Future

  14. Slide 14: Hydralyte Integration Proceeding on Schedule

    P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 5 R e s u l t s 1 4 Hydralyte Integration Proceeding on Schedule  Integration of Hydralyte into Care Pharma underway − Transition to Care Pharma direct sales force September 1st  Innovation and new product development are underway − 3 new p

  15. Slide 15: Pro Forma Net Sales and Adjusted EBITDA Scale and Profitability

    P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 5 R e s u l t s 1 5 Net Sales Pro Forma Adjusted EBITDA(1) Sc al e P rofi ta b ili ty Pro Forma Adjusted Gross Margin (% Net Sales) Pro Forma Adjusted EBITDA Margin (% Net Sales) $602 ~$800 FY2014 Pro Forma 57% ~60% FY2014 Pro Forma 34% ~37%

  16. Slide 16: II. First Quarter FY2015: Financial Overview

    P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 5 R e s u l t s 1 6 II. First Quarter FY2015: Financial Overview

  17. Slide 17: Selected Observations on First Quarter Performance

    P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 5 R e s u l t s 1 7 Selected Observations on First Quarter Performance  Solid overall financial performance in the quarter consistent with expectations − Net Revenue growth of 2.2% based on increasingly diversified portfolio − Adjusted Gross

  18. Slide 18: Selected Observations on First Quarter Performance (Cont'd)

    P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 5 R e s u l t s 1 8 Selected Observations on First Quarter Performance (Cont’d)  Company announced today its plan to launch financing for the acquisition of Insight Pharmaceuticals − Continue to expect to close transaction by September 30th

  19. Slide 19: Q1 FY'15 Income Statement Summary

    P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 5 R e s u l t s 1 9 Q1 FY'15 Q1 FY'14 % Chg Net Revenue 145.7$ 142.5$ 2.2% Adj. Gross Margin(1) 82.0 83.0 (1.2%) % Margin 56.3% 58.3% A&P 19.1 18.7 2.2% % Net Revenue 13.1% 13.1% Adj. G&A(1) 11.9 11.1 7.3% % Net Revenue 8.1% 7.8% Adjusted EBI

  20. Slide 20: Debt Profile & Financial Compliance

    P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 5 R e s u l t s 2 0 Debt Profile & Financial Compliance:  Total Net Debt at 6/30/14 of $957 million comprised of: – Cash on hand of $16 million – $323 million of term loan and revolver – $650 million of bonds  Leverage ratio(2) of ~4.6x Str

  21. Slide 21: III. Updated Perspective on the M&A Market

    P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 5 R e s u l t s 2 1 III. Updated Perspective on the M&A Market

  22. Slide 22: Potentially Significant Pool of M&A Opportunities

    P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 5 R e s u l t s 2 2 Potentially Significant Pool of M&A Opportunities Resulting from Large OTC M&A Deals and Announced Wholesale Divestitures  Divest or exit 90 to 100 smaller brands  Mostly sales of under $100 million  Focus on 70 to 80 r

  23. Slide 23: Illustrative Combined Portfolio: ~$4 Billion in Retail Sales of Brands Under $100MM

    P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 5 R e s u l t s 2 3 Dollar values in millions Source: Euromonitor (2013) 0% 20% 40% 60% 80% 100% Retail Sales: % of Retail Sales: 29% 16% 15% 11% 8% 7% 6% 8% Oral Health CCAS $4,490 Analgesics $1,754 $1,325 VMS / Nutrition Skin Care GI Smokin

  24. Slide 24: M&A Market as Prolific as it has been in the Last Five Years

    P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 5 R e s u l t s 2 4 M&A Market as Prolific as it has been in the Last Five Years  Likely portfolio rationalizations from existing transactions in the next 12 – 24 months  GSK prior “bottom 10%” divestiture plan as well as P&G announcement m

  25. Slide 25: IV. FY2015 Outlook and the Road Ahead

    P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 5 R e s u l t s 2 5 IV. FY2015 Outlook and the Road Ahead

  26. Slide 26: Business and Environment Positions Prestige Brands to Create Shareholder Value

    P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 5 R e s u l t s 2 6 Business and Environment Positions Prestige Brands to Continue to Create Shareholder Value − Improved Prestige Brands consumption trends leading to market share gains − Challenging retail environment provides some uncertai

  27. Slide 27: R e s u l t s

    P R E S T I G E B R A N D S F i r s t Q u a r t e r F ’ 1 5 R e s u l t s 2 7

Prestige Brands Holdings — Q1 FY2015 Earnings Presentation on 6ix