Prestige Consumer Healthcare Inc. · NYSE:PBH
Prestige Consumer Healthcare — Prestige Brands Holdings — Q4 FY2011 Earnings Presentation
26 slides from Prestige Consumer Healthcare's earnings presentation, May 12, 2011
Slide 1: Review of Fourth Quarter & FY'11 Results
ae Er PrestigeBrands ye Review of Fourth Quarter & F’11 Results Matt Mannelly, President & CEO Ron Lombardi, CFO May 12, 2011
Slide 2: Safe Harbor
Safe Harbor Di During this call statements may be made by management of their beliefs and expectations as to the Company's future operating results. Statements of management's expectations of what might occur with respect to future operating results are what is known as forward- looking statements.
Slide 3: Fourth Quarter Highlights
Fourth Quarter Highlights = Strong financial performance for the quarter - Net Revenue growth of 4.1%, excluding the impact of acquisitions - Adjusted EPS of $0.18, up 28.6% versus prior year - Cash Flow from Operating Activities of $25.0 million, up from $8.9 million prior year = New strategic focu
Slide 4: Strong Topline Growth
Strong Topline Growth Q4 Net Revenue (% Growth) @@FY2010 G@BFY2011 37.8% [> $96.4 rLaee > $69.9 $69.9 $72.8 plese [> $33.1 _ $39.9 Prestige Total Excluding Acquisitions Core OTC Excluding Acquisitions clear CVE aie mets eBrands Dollar values in milion
Slide 5: More Effective and Increased Investment in A&P
More Effective and Increased Investment in A&P... Select Q4 Initiatives PediaCare@® national TV, Digital, and social campaign PediaCare and Little Remedies® pediatrician support 20% increase in Chloraseptio® TV advertising 50%+ increase in Clear Eyes® to support new item introductions Little Fevers®
Slide 6: Driving Accelerated Consumption Growth
..Driving Accelerated Consumption Growth 34 Consecutive Quarter of Growth in FY2011 Quarterly A&P Spending (% of Net Revenue) HEEIFY2010: $20.9 million (10.5%) HEBFY2011: $42.9 million (12.7%) $13.1 ales 20.6% 14.2% a a — (6.4%) Qi Q2 Q3 a4 eBrands Source: IRI FDMH dollar sales
Slide 7: Core OTC Brands Continued to Significantly Outperform Their Categories in Q4
Core OTC Brands Continued to Significantly Outperform Their Respective Categories In Q4 — — M@ibrand Core OTC Hiicategory PBH Core: 21.4% Acquired: 53.2% Category: 8.6% Category: 9.7% ia a Se Rewer 361.6% 29% ww \ “es 32.8% = 27.6% & ; 12.8% ae Ae vod 14.2% 12.39 13.9% 112.3% 10.7% 3% 3.29 ay = (8.6
Slide 8: Household Consumption Trends Consistent With Category Trends
Household Consumption Trends Consistent With Category Trends Consumption Trends I es to Stabilize Comet Mierand . Micategory Q3 a Q4 93 Q4 |_| lines | | (4.4%) 4.3%) (2.9%J 5%) (4.6%) C- (6.5%) (12.0%) . Abrasive r Non-Abrasive 7 Cleaners Cleaners Strengthen consumer value proposition ~ Introduced C
Slide 9: FY2011: A Transformational Year For Prestige
FY2011: A Transformational Year For Prestige _———— PrestigeBrands
Slide 10: I. Grow Five Core OTC Brands
I. Grow Five Core OTC Brands Five Core OTC Brands FY2011 \ +9.3% ) Factory Shipments Little . a ‘ +11.7% Remedies’? © y Consumption E Doctoi stigeBrands 10
Slide 11: II. Build Brands through Increased, Innovative and Effective A&P Support
II. Build Brands through Increased, Innovative and Effective A&P Support FY2011 Shipment and Consumption Growth mBrand mCategory Fy2011 NetRevenue my <m <r ame NMF 0 ONMF 0 ONME | NME ly Growth 167.5% 34.5% en 13.7% 13.3% E530 8.6% 7.0% ° 5 0.2% - 5.5% | % 1.2% | % 6.4% Oo = 1.9% (3.5%) (3.6%) Oo (3
Slide 12: III. Two Transformational OTC Acquisitions for Prestige
III. Two Transformational OTC Acquisitions for Prestige \CKSMITH selena November 2010. January 2011 Dramamine Dramamine’ Tey stacicenarn BRANDS #1 brand with strong competitive position Strategic core OTC franchise Ability to deliver growth Attractive margin profile = Adds 3 scale OTC brands in attr
Slide 13: III. Acquisitions Have Transformed the Portfolio into a Largely OTC Focus
III. Acquisitions Have Transformed the Portfolio into a Largely OTC Focus PrestigeBrands (Q3 20 BuaccsmrH + Dramamane’ BRANDS ig Personal Household Household 5 Core OTC Brands 9 Core OTC Brands “a 2 «Oa : « Little Remedies Clear "32 *(uotXs §= DEES Little Remedies Clear eyes eyes z Dramamine (eae Br
Slide 14: III. Recently Acquired Brands Contribute Meaningfully to Consumption Gains
III. Recently Acquired Brands Contribute Meaningfully to Consumption Gains PrestigeBrands Acquired Brands PréstigeBrands Mierand Hicategory Core OTC Acquired: 24.5% Clear por SVES rinse remedies [2 Category: 2. Category: (2.1%) 4p recoelras ie *Gowss LEED) "2? Dramamine eae 167.5% Atle Remedies 34.5
Slide 15: IV. Strengthen Management Team and Organizational Capabilities
IV. Strengthen Management Team and Organizational Capabilities = New leadership team in key functional areas - Sales/Marketing - Finance j ; = Operations Dpera ; Marketing People = Integration of Sales and Marketing activities for improved consumer and Process customer results = Implement new 3-year
Slide 16: V. Deliver Strong Cash Flow and Financial Performance
V. Deliver Strong Cash Flow and Financial Performance FY2011 ancial Highlights (% Growth) @@FY2010 M@BFY2011 [ 15.0% [> $3385 $2928 rlassoe]> rlsz.9%]> = le 101.3 sua * én $057 | 7 a Net Revenue ‘Adjusted EBITDA Adjusted EPS Cash Flow From Operating Activities eBrands Dollar values in millions Note:
Slide 17: Introduction to Financial Results
Introduction to Financial Results = Strong A&P investment behind core OTC brands and Blacksmith Brands acquisition driving revenue growth trends = Net Income and EPS growth over FY2010 Q4 = Solid Q4 performance includes investments for growth 2 PrestigeBrands 17
Slide 18: Consolidated Financial Summary
Consolidated Financial Summary Net Revenue Gross Profit % Margin Aap % Net Revenue Ges % Net Revenue Adjusted EBITDA % Margin Ded % Net Revenue Operating Income % Margin Adjusted Net Income Adjusted Earnings Per Share Earnings Per Share - As Reported Dollar yslues in millions Note! Eneludes adjustme
Slide 19: Consolidated Financial Summary (Full Year)
Consolidated Financial Summary Fy2010 $ 292.6 Net Revenue Gross Profit % Margin ARP % Margin Gea % Margin Adjusted EBITDA % Margin Dea % Margin Operating Income % Margin Adjusted Net Income Adjusted Earnings Per Share Earnings Per Share - 4s Reported Dollar yslues in millions Note! Eneludes adjustme
Slide 20: Net Income and EPS Reconciliation
Net Income and EPS Reconciliation oa FullYear Wat nome EPS Wat nome EPS G4FY2011 Adjustedfor Onetimeltems § 88 § O18 $ 399 § O78 Onetime Adjustment Inorementa Interest Expense to Finance Dramamine 2) (002) Inventory Step-up Associated with Purchar® Price Allocation: Blackemith oon (008) en (0.13) Dr
Slide 21: Q4 Segment Financial Summary
Q4 Segment Financial Summary FY2011 94 LE comments Net Revenue Fy2011 Fy2010 % Change Gross Profit Fy2o11 % Margin Fy2oio % Margin ARP Fy2011 Fy2010 % Change Fy2011 Fy2010 % Change Dollar yslues in millions Note! Eneludes adjustments detailed on page 20 $ 71.6 42.9 66.5% 42.0 58.8% 26.3 61.2% 12.8 4
Slide 22: Full Year Segment Financial Summary
Full Year Segment Financial Summary OTC Household Gonsoli = OTC segment revenue grew 29.0% Net Revenue with core OTC up 9% (excluding Fy2011 $2346 § 1019 $§ 338.8 acquisitions) as acquisitions added Fy2010 181.9 110.7 292.6 $38.8 million sa-change 2G, iB). 4906 = Household revenue declined 7.9% due
Slide 23: Prestige Strength: Strong Cash Flow from Operations
Prestige Strength: Strong Cash Flow from Operations Net Income Depreciation and Amortization Other Non-Cash Operating Items Working Capital Cash Flow from Operations Dollat values in millions = Q4 cash flow excluding the impact of O4'11 FY2011 acquisitions totaled approximately $ 6.4 $29.2 $15 milli
Slide 24: Positioned Entering FY2012
ioned Entering FY2012 = Significantly improved financial profile in FY2011 = Clear goals for FY2012 to build on success and momentum: - Drive Core OTC growth through proven increased and innovative A&P investment over FY2011 levels - Develop long term potential of Blacksmith and Dramamine brands fol
Slide 25: Clear Roadmap for Value Creation
Clear Roadmap for Value Creation _— PrestigeBrands _—— PrestigeBrands 25
Slide 26: a em
a em PrestigeBrands _—— PrestigeBrands 26
Prestige Brands Holdings — Q4 FY2011 Earnings Presentation on 6ix