Prestige Consumer Healthcare Inc. · NYSE:PBH
Prestige Consumer Healthcare — Prestige Brands Holdings — Q1 FY2018 Earnings Presentation
23 slides from Prestige Consumer Healthcare's earnings presentation, Aug 3, 2017
Slide 1: Review of First Quarter FY 18 Results
Exhibit 99.2 —, 7. PrestigeBrands Le Review of First Quarter FY 18 Results August 3, 2017
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 Company’s ex
Slide 3: Agenda for Today's Discussion
Agenda for Today's Discussion |. Performance Highlights Il. Financial Overview Ill. FY 18 Outlook and the Road Ahead
Slide 4: I. Performance Highlights
I. Performance Highlights NAMM LLL SS // immers Eve Drama
Slide 5: Strong Financial Performance in Q1 FY 18
Strong Financial Performance in Q1 FY 18 Revenue of $256.6 million, up 22.4% us. prior year comparable period Revenue growth of +3.0%( pro forma for the Fleet acquisition Adjusted EPS of $0.66), up ~12% us. prior year comparable period Adjusted Free Cash Flow of $56.5 million), up 11.4% us. prior ye
Slide 6: Q1 results summary
Q1 Revenue of $256.6 million, up 22.4% versus prior year Q1 Revenue growth of 3.0%(1) pro forma for the Fleet acquisition Excluding Fleet, organic Revenue growth of 2.0%(1) (ex-Fx) Gross margin slightly ahead of expectations Adjusted EPS of $0.66(2), up 11.9% versus prior year Q1 Continu
Slide 7: Prestige Brands vs. Prestige Categories sales growth
4.3% 1.8% FY18 YTD Prestige Brands Prestige Categories Source: IRI multi-outlet + C-Store retail dollar sales for the Fiscal YTD period ending 07/16/2017 Consumer insights and research drive what we do Ongoing new product development pipeline Digital and content marketing aimed at connecting w
Slide 8: Connecting with a new generation of consumers
Source: IRI MULO through latest period Connecting with a new generation of consumers Target is sensory oriented consumer: Flavors, Colors, Music Experiential, lifestyle, and entertainment focused Collaborative flavor development Mass Dollar Club Drug Convenience
Slide 9: Fleet brand overview
Fleet brand represents ~20% of acquired portfolio Fleet delivers highly effective relief in a fraction of the time Over 140 years of heritage #1 Doctor recommended brand #1 #1 Other Health Care Professionals (“HCPs”) Currently Recommending Fleet Enemas 97% 100% 98%HCPs Brand Awareness:
Slide 10: Fleet integration progress
“Order-to-cash” integrated sales platform complete Cross sharing of international resources Successful Summer’s Eve “Simply” launch Long-term NPD pipeline Integrated Women’s Health sales efforts Warehouse and freight consolidated into existing footprint Fleet R&D lab expanding to new b
Slide 11: II. Financial Overview
ll. Financial Overview
Slide 12: Strong overall financial performance in the quarter
Strong overall financial performance in the quarter − Revenue of $256.6 million, an increase of 22.4% − Adjusted EPS of $0.66(2), up 11.9% − Adjusted Free Cash Flow increase of 11.4% to $56.5 million(2) $256.6 $90.7 $56.5 $209.6 $76.6 $50.7 Total Revenue Adjusted EBITDA Adjusted EPS Adjusted Free
Slide 13: Q1 FY18 income statement detail
Revenue growth of +22.4% – Revenue growth of 3.0%(1) , pro forma for the Fleet acquisition – Organic growth of 2.0%(1) (ex-Fx) – Fleet contributed $54.9 million of Revenue during the quarter – Impact of divested brands of $11.0 million Adjusted Gross Margin of 56.9%(2) slightly ahead of expectat
Slide 14: Net debt, leverage and free cash flow
Net Debt in June of $2,128 million comprised of: – Cash on hand of $44.1 million – $1,422 million of term loan and revolver – $750 million of bonds Leverage ratio of 5.6x(3) Leverage ratio of approximately 5.0x(3) expected at end of fiscal 2018 Q1 debt prepayment of $50 million $56.5 $50.7 A
Slide 15: III. FY 18 Outlook and the Road Ahead
Ill. FY 18 Outlook and the Road Ahead MONISTAT [mL esoe
Slide 16: FY 18 outlook
Strong momentum in our largest brands and international business realized in Q1 Continue to gain share across portfolio Prestige’s portfolio of need-based brands continues to be well positioned for long-term growth despite continued headwinds at retail Revenue growth of +18% to +20% ($1,040
Slide 17: First Quarter FY 18 Results appendix
er First Quarter FY 18 Results PrestigeBrands :7
Slide 18: Non-GAAP footnotes
(1) Organic Revenue Growth on a constant currency basis and Proforma Revenue Growth on a constant currency basis are Non- GAAP financial measures and are reconciled to the most closely related GAAP financial measure in the attached Reconciliation Schedules and / or our earnings release in the “About
Slide 19: Revenue reconciliation
Three Months Ended Jun. 30, 2017 2016 (In Thousands) GAAP Total Revenues 256,573$ 209,575$ Revenue Growth 22.4% Adjustments: Revenues associated with acquisitions (54,887) - Revenues associated with divested brands - (11,039) Impact of foregn currency exchange rates - (752) Non-GAAP Organic Revenues
Slide 20: Gross margin and A&P reconciliation
Three Months Ended Jun. 30, 2017 2016 (In Thousands) GAAP Total Revenues 256,573$ 209,575$ GAAP Gross Profit 143,476$ 121,591$ Adjustments: Integration, transition and other costs associated with acquisitions 2,576 - Total adjustments 2,576 - Non-GAAP Adjusted Gross Margin 146,052$ 121,591$ Non-GAAP
Slide 21: G&A and EBITDA reconciliation
Three Months Ended Jun. 30, 2017 2016 (In Thousands) GAAP General and Administrative Expense 20,336$ 19,457$ GAAP General and Administrative Expense as a Percentage of GAAP Total Revenue 7.9% 9.3% Adjustments: Legal and professional fees associated with acquisitions and divestitures 373 484 Integrat
Slide 22: Adjusted EPS reconciliation
Three Months Ended June 30, 2017 2017 Adjusted EPS 2016 2016 Adjusted EPS (In Thousands) GAAP Net Income (Loss) 33,759$ 0.63$ (5,531)$ (0.10)$ Adjustments: Integration, transition and other costs associated with acquisitions and divestitures in Cost of Goods Sold 2,576 0.05 - - Integration, transiti
Slide 23: FY18 projected EPS and free cash flow reconciliation
2018 Projected EPS Low High Projected FY'18 GAAP EPS 2.51$ 2.61$ Adjustments: Costs associated with Fleet integration 0.07 0.07 Total Adjustments 0.07 0.07 Projected Non-GAAP Adjusted EPS 2.58$ 2.68$ 2018 Projected Free Cash Flow (In millions) Projected FY'18 GAAP Net Cash provided by operating acti
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