Prestige Consumer Healthcare Inc. · NYSE:PBH
Prestige Consumer Healthcare — Prestige Brands Holdings — Raymond James Institutional Investor Conference (February 2017)
31 slides from Prestige Consumer Healthcare's conference presentation, February 2017
Slide 1: Who We Are and Review of Q3 Results
— ail PrestigeBrands Who We Are and Review of 39 Results Raymond James Institutional Investor Conference
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 impact of th
Slide 3: Agenda for Today's Discussion
Agenda for Today's Discussion |. Who is Prestige Brands? ll. Performance Highlights Ill. Fleet Overview IV. FY 17 Outlook and the Road Ahead Ne ae Third Quarter FY 17 Results PrestigeBrands 3
Slide 4: I. Who is Prestige Brands?
|. Who is Prestige Brands? Summers €ve Dramamine Clear | Goodys' a Chloraseptic iam eyes, tBC) = a MONISTAT fies oa
Slide 5: Largest independent OTC products company in North America
Prestige Brands is the largest independent OTC products Company in North America. The Company markets and sells well-known, brand name, over-the-counter healthcare and household cleaning products throughout the U.S. and Canada, Australia, and certain other international markets. We operate in niche
Slide 6: Helping Consumers Care for Themselves
Helping Consumers Care for Themselves OY eye drops per year Clear eyes. woen® throat drops for every cold season doses of pain relief per week ae Third Quarter FY 17 Results PrestigeBrands 6
Slide 7: Prestige Brands at a glance
$ * Market data as of February 21st, 2017 ** Includes approximate run-rate revenue pro forma for the acquisitions of DenTek and Fleet
Slide 8: Key highlights
~85% of portfolio now positioned for durable, consistent organic growth Best-in-class ongoing FCF generation (6) $190M+ of adjusted FCF expected for FY17 Completed 4 acquisitions since 2013 Investor Day, plus Fleet acquisition announcement
Slide 9: Acquisition history of North American brands
North American Brands September 2010 December 2010 December 2011 April 2014 November 2015 December 2016 July 2013 April 2014
Slide 10: OTC revenue by brand
Source: OTC revenues for FY 16 Note: Pro forma for DenTek and Fleet acquisitions; excludes Household
Slide 11: Market share of brands (IRI)
Source: IRI MULO+C-Store (Retail Dollar Sales).
Slide 12: II. Performance Highlights
ll. Performance Highlights Fleet. Summers €ve Dramamine Clear | Goodys' a Chloraseptic iam EVES. .BC, i MONISTAT fies oa
Slide 13: Strong Financial Performance in YTD FY17
Strong Financial Performance in YTD 93 FY 17 Revenue of $641.4 million, up 7.2% versus YTD 93 FY 16 Organic Revenue growth of +1.0% on a constant currency basis Adjusted EPS of $1.83), up 10.9% versus YTD 93 FY 16 Adjusted Free Cash Flow of $149.1 million®), up 10.7% versus YTD 93 FY 16 Net debt red
Slide 14: Q3 FY17 results summary
Three Months Ended Nine Months Ended Revenue growth of +8.3% Q3 FY 17 Q3 FY 16 % Chg Q3 FY 17 Q3 FY 16 % Chg – Organic growth of 2.8% Total Revenue $ 216.8 $ 200.2 8.3% $ 641.4 $ 598.4 7.2% excluding the impact of Fx(1) Gross Margin 124.5 116.8 6.6% 370.1 349.0 6.1% – DenTek contributed $17.3 % Ma
Slide 15: Free cash flow and divestitures accelerate deleveraging
Superior EBITDA margin profile Adjusted Free Cash Flow in Millions(2) Largely outsourced manufacturing with $190 (6) $183 $185 minimal capital outlays $164 $127 $130 Disciplined acquisition strategy with $86 proven integration synergies $59 $67 Low cash tax rate from significant long- term t
Slide 16: III. Fleet Overview
lll. Fleet Overview Summer's Eve a . | Clear | Goodys' a Chloraseptic iam eyes, tBC) a a
Slide 17: Fleet acquisition pro forma impact
+ ~1.3x + ~5% pts ~$1,000 ~85% ~$800 ~80% ~$625 ~65% FY 2013 FY 2016 Pro Forma FY 2013 FY 2016 Pro Forma + ~5% pts + 1.4x ~75% 7 ~70% 5 ~65% 2 FY 2013 FY 2016 Pro Forma FY 2013 FY 2016 Pro Forma Dollar values in millions Note: All charts refer to Total Revenue or Revenue mix as % of total.
Slide 18: Fleet brands by revenue
~$275 ~$150 ~$120 ~$120 ~$110 ~$110 ~$100 Dollar values in millions Note: Figures represent approximate annualized Total Revenues pro forma for C.B. Fleet acquisition.
Slide 19: Fleet women's health brands
Temporary relief of minor Cleanses odor-causing Quick and discreet Neutralizes odor and vaginal irritation and itching bacteria pH-balanced, alcohol-free absorbs moisture pH-balanced, gentle pH-balanced, alcohol-free and hypoallergenic Hypoallergenic and infused formulas and hypoalle
Slide 20: Fleet integration and growth priorities
Leverage Prestige’s scale to expand distribution Strengthen and accelerate international growth Invest meaningfully in Fleet’s brands and accelerate new product pipeline Broaden established leadership in women’s health Optimize operations to derive significant synergies over time Identif
Slide 21: IV. FY17 Outlook and the Road Ahead
IV. FY 17 Outlook and the Road Ahead Summer's Eve >, . Cea Gp Raa eyes. MONISTAT [eso
Slide 22: FY17 outlook
Revenue growth remains +4.5% to +6.0% for the year — Q3 YTD Actual +7.2% — Includes impact of divested brands — Continuing to expect organic growth of +1.5% to +2.0% in second half Expect high end of $2.30 to $2.36 range Adjusted Free Cash Flow of $190 million or more * Excludes impact of C.B.
Slide 23: Investment highlights
Portfolio of recognizable brands in Strong and consistent cash flow Demonstrated track record of 8 attractive consumer health industry driven by industry leading EBITDA successful acquisitions during the margins, capital-lite business model past ~6 years Established expertise in brand- & sig
Slide 24: Q&A
QeA DE — Third Quarter FY 17 Results PrestigeBrands 2 «
Slide 25: Non-GAAP footnotes
(1) Organic Revenue Growth on a constant currency basis is a Non-GAAP financial measure and is reconciled to its most closely related GAAP financial measure in our earnings release in the “About Non-GAAP Financial Measures” section. (2) Adjusted G&A, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted
Slide 26: Organic revenue reconciliation
Three Months Ended Dec. 31, Nine Months Ended Dec. 31, 2016 2015 2016 2015 (In Thousands) GAAP Total Revenues $ 216,763 $ 200,195 $ 641,390 $ 598,392 Adjustments: DenTek revenues (17,327) - (51,168) - Revenues associated with divested brands - (6,636) - (13,542) Total adjustments (17,327) (6,636) (5
Slide 27: Adjusted G&A reconciliation
Three Months Ended Dec. 31, Nine Months Ended Dec. 31, 2016 2015 2016 2015 (In Thousands) GAAP General and Administrative Expense $ 22,131 $ 18,135 $ 60,383 $ 52,186 Adjustments: Costs Associated with CEO transition - - - 1,406 Legal and professional fees associated with acquisitions and divestiture
Slide 28: Adjusted EBITDA reconciliation
Three Months Ended Dec. 31, Nine Months Ended Dec. 31, 2016 2015 2016 2015 (In Thousands) GAAP Net (Loss) Income $ 31,641 $ 27,995 $ 58,305 $ 85,971 Interest expense, net 18,554 19,462 60,511 62,013 (Benefit) provision for income taxes 19,092 15,186 33,743 46,611 Depreciation and amortization 5,852
Slide 29: Adjusted net income and EPS reconciliation
Three Months Ended Dec. 31, Nine Months Ended Dec. 31, 2016 2015 2016 2015 Net Net Net Net Income EPS Income EPS Income EPS Income EPS (In Thousands) GAAP Net Income $ 31,641 $ 0.59 $ 27,995 $ 0.53 $ 58,305 $ 1.09 $ 85,971 $ 1.62 Adjustments: Costs associated with CEO transition - - - - - - 1,406 0.
Slide 30: Adjusted free cash flow reconciliation
Three Months Ended Dec. 31, Nine Months Ended Dec. 31, 2016 2015 2016 2015 (In Thousands) GAAP Net (Loss) Income $ 31,641 $ 27,995 $ 58,305 $ 85,971 Adjustments: Adjustments to reconcile net (loss) income to net cash provided by operating activities as shown in the Statement of Cash Flows 3,978 19,1
Slide 31: Projected FY17 EPS and free cash flow reconciliation
2017 Projected 2017 Projected EPS Free Cash Flow Low High (In millions) Projected FY'17 GAAP EPS $ 1.55 $ 1.61 Projected FY'17 GAAP Net Cash provided by operating activities $ 191 Adjustments: Additions to property and equipment for cash (4) Costs associated with DenTek integration 0.08 0.08 Project
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