Prestige Consumer Healthcare Inc. · NYSE:PBH
Prestige Consumer Healthcare — Prestige Brands Holdings — Investor Day (May 2016)
112 slides from Prestige Consumer Healthcare's investor day presentation, May 25, 2016
Slide 1: Investor Day 2016
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Slide 2: Safe Harbor Disclosure
Safe Harbor Disclosure This presentation contains certain "forward-looRing" statements within the meaning of the Priuate Securities Litigation Reform Act of 1995, such as statements regarding the Company's expected financial performance, including reuenue growth, EPS, cash flow, adjusted free cash f
Slide 3: Presenters
Ron Lombardi President & Chief Executive Officer David Marberger Chief Financial Officer Tim Connors Executive VP, Sales & Marketing
Slide 4: Agenda for Today's Discussion
Agenda for Today's Discussion I. Setting the Stage Il. PiéstigeBvands Value Proposition Ill. Sustainable Growth Through Brand Building IV. Financial Results and Outlook V. Long-Term Value Creation Model VI. QeA Se Investor Day 2016 PrestigeBrands «
Slide 5: Setting the Stage
Setting the Stage Ron Lombardi President e CEO Hydralyte =
Slide 6: Guiding principles
The following principles guide us in this endeavor: outstanding shareholder value through superior growth in sales, profits, and cash flow innovative products that exceed our consumers expectations in true partnerships with our suppliers and customers a company culture founded on leadership,
Slide 7: Helping Consumers Care for Themselves
Helping Consumers Care for Themselves ye drops per year = eyes DENS: throat drops for every cold season a Chloraseptic = (BC) doses of pain relief per week Goody |
Slide 8: Company at a glance
$ (1) Market data as of May 20, 2016 (2) Includes approximate run-rate revenue pro forma for the acquisition of DenTek
Slide 9: Key themes
team OTC focus emphasis on brand building value proposition formula for growth long-term value creation model
Slide 10: Meaningful Continued Progress Along A Number of Dimensions
Meaningful Continued Progress Along A Number of Dimensions Portfolio PrestigeBrands International Categories Investor Day 2016 PrestigeBrands 10
Slide 11: OTC and household revenue mix
OTC Household OTC Household Note: 2016 figures Include approximate run-rate revenue pro forma for the acquisition of DenTek
Slide 12: Meaningful Additions to Core OTC Portfolio
Meaningful Additions to Core OTC Portfolio Dramanne ©} 0 — Core OTC Brands Chloraseptic “| E Ss Investor Day 2016 PrestigeBrands 12 © Nix
Slide 13: Healthcare demand trends
Boomers Accelerating Demand for Health Care Growing Incidence of Chronic Disease Digital Explosion of Health Information Employers Shift Responsibility to Employees ACA Increasing Demand with More Newly Insured Shortage of Primary Care Physicians
Slide 14: Domestic Addressable Market
Domestic Addressable Market ($BN) +0.5% +2.4% +1.3% Source: Company information; Y/Y LTM growth; IRI MULO for the LTM period ending March 20, 2016 $3.8 $1.8 $2.0 +2.9% $4.3 +2.9% $4.4
Slide 15: Domestic Addressable Market by category
Domestic Addressable Market ($BN) +0.5% +2.4% Source: Company information; Y/Y LTM growth; IRI MULO for the LTM period ending March 20, 2016 $1.8 $2.0 +3.8% $1.6 +2.6% $7.7 +1.3% $3.8 +2.9% $4.3 +2.9% $4.4
Slide 16: Our International Business Has Doubled
Our International Business Has Doubled Investor Day 2013 Investor Day 2016 -$60MM / -$120MM / Lae Investor Day 2016 PrestigeBrands :«
Slide 17: Manage for Cash, Invest for Growth
Manage for Cash Organic Revenue Growth: (1) FY 2013 Fourth Quarter Results presentation (2) Company information per attached reconciliation schedule; reflected on a constant currency basis Invest for Growth
Slide 18: Acquisition timeline
Sep 2010 Nov 2015 Apr 2014 Dec 2010 Dec 2011 Jul 2013 Apr 2014 International
Slide 19: Prestige Brands Value Proposition
PrestigeBrands Value Proposition Ron Lombardi President e& CEO
Slide 20: Prestige's Value Proposition
Prestige’s Value Proposition e oe& © © OFF ORIOEIO SS Superior Shareholder Value Creation eS eee PrestigeBrands 2 Investor Day 2016
Slide 21: OTC revenues
Source: Company filings for OTC revenues for FY 16 Note: Pro forma for DenTek acquisition; excludes Household
Slide 22: #1/#2 brand positions
Source: Company information; illustrative set of #1/#2 brands shown; reflects brand level gross sales for FY 16
Slide 23: Market share leadership
23% 9% 9% 6% 4% 3% 3% 3% 2% 1% 1% 1% Company Information Source: IRI MULO for the LTM period ending March 20, 2016; figures represent share of combined categories for Prestige’s core brands Note: Private Label share of 22% not shown +2.5x the closest branded competitor
Slide 24: Organic sales and consumption growth
Source: IRI multi-outlet + C-Store retail dollar sales growth for relevant period Note: Data reflects retail dollar sales percentage growth versus prior period; FY’16 Organic sales growth presented on a constant currency basis O rg a n ic Sa les G ro w th C o n s u m p ti o n G ro w th 5.2% 3.9% (3.
Slide 25: Long-Term Success Story
Source: Company information; figures represent approximate sales growth over ownership period Long-Term Success Story >10 Years Revitalizing Legacy Brands 4 Years Driving Growth by Redefining the Category 2 Years Winning with Professionals and Consumers 1 Year Driving Category Growth 5 Years
Slide 26: Category sizes
Dollar values in billions Source: IRI MULO Retail Dollar Sales, Latest 52 Weeks Ending March 20, 2016
Slide 27: Outsourced operating model
Marketing Brand Management Customer Service IT Finance Product Quality Product Development Sales Advertising Logistics Manufacturing Distribution
Slide 28: Organic Growth Engine Fueled by M&A Activities
Organic Growth Engine Fueled by MesA Activities ee Organic Inorganic Growth Growth LUDENS ind a . . Dramamine cl Reinforcing oe @ L-| Effect co oc a Nix / Product ‘ rer Innovation of Assets Marketing and Innovation Drive Acquisitions Leverage Existing Brand Building and Organic Growth Infrastructure
Slide 29: Share price performance vs S&P 500
$0 $10 $20 $30 $40 $50 $60 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Source: Capital IQ market data as of May 20, 2016 Note: S&P 500 Indexed to Prestige Brands price as of Sep-09 Investor Day 2013 Investor Day 2016
Slide 30: Sustainable Growth Through Brand Building
Sustainable Growth Through Brand Building Tim Connors Executive VP, Sales & Marketing © MoNisTAT agar
Slide 31: Brand building and sales execution
Be Preeminent Brand Building and Sales Execution Company Invest in Our Growth Portfolio Organic Growth and Market Share Gains Consumer Insights, Product Innovation, Breakthrough Marketing and Superior Sales Execution
Slide 32: Brand building approach
Mining consumer insights Invest in growth brands Innovative consumer, professional and digital marketing campaigns Develop products that consumers need, want and value Unique, meaningful benefits Innovative technology Collaborative business planning Sell-in and sell-through Effecti
Slide 33: Brand building capabilities
Consumer Insights Digital / Social Media Customer Business Planning New Product Technical Skills Packaging Design Consumption & Share Gains Profitable Revenue Growth P&L Accountability Customer Performance Scorecards Experienced CPG Marketers Seasoned Product Development Direct
Slide 34: Canada retail sales
Source: IRI MULO+C-Store period ending March 20, 2016; Retail Dollar Sales (Canada)
Slide 35: Retail sales growth
Source: IRI MULO+C-Store period ending March 20, 2016; Retail Dollar Sales
Slide 36: OTC brand size distribution
14% 86% 56 Brands >$100MM ~350 Brands(1) <$100MM Source: IRI Multi-Outlet period ending March 20, 2016 (1) Represents brands with consumption exceeding $1MM OTC 11 8 7 6 5 4 4 3 3 1 1 1 1 1
Slide 37: A&P spending
$28 10% % of Total Revenues: $87 14% $111 14% Dollar values in millions Source: Company filings A&P Spending:
Slide 38: Our Approach to Driving Sustained Organic Growth
Our Approach to Driving Sustained Organic Growth —— Investor Day 2016 PrestigeBrands ;s
Slide 39: Long-Term Success Story
Winning with Professionals and Consumers Driving Growth by Redefining the Category Driving Category Growth Long-Term Success Story Revitalizing Legacy Brands
Slide 40: Monistat: Winning with Professionals and Consumers
MONISTAT™ Winning with Professionals and Consumers
Slide 41: Monistat history
Market Introduction Professional detailing through 2007 OTC switch Market share decline vs private label and Rx Acquisition by Prestige in 2014 MONISTAT Rx
Slide 42: Monistat share vs Rx and private label
OTC Rx Monistat Private Label (1) Rx data per IMS, data represents unit share of VAF category (2) IRI MULO quarterly rolling LTM data from 2010 through 2014, data represents dollar share of OTC VAF category; Private Label includes other branded offerings 56% 52% 59% 53%
Slide 43: Monistat category share
3% 42% Private Label Other Brands Source: IRI MULO+C-Store period ending March 20, 2016; data represents dollar share of VAF category
Slide 44: Capturing the Monistat Opportunity
Capturing the Monistat Opportunity Prestige’s 4-Part Plan for Monistat’s Success d dj eae ge Investor Day 2016 PrestigeBrands ««
Slide 45: Build Health Care Professional Advocacy
Systematically Build Health Care Professional Advocacy Professional Conferences ae opal NGRSE PRACTITIONERS R =A nivoveNS HEA ovo, ‘SEAMION CONES CATER WOGECOIOGTS Education Sampling Professional Partnerships Physician and OBGYN ‘ Detailing Se Investor Day 2016 PrestigeBrands «+s
Slide 46: Drive Trial and Awareness with Millennials
Drive Trial and Awareness with Millennials Targeted Online Messaging J Education fear Social _ ti TIME FOR i Ce as Investor Day 2016 PrestigeBrands ««
Slide 47: Monistat Cure Television Copy
Monistat Cure Television Copy STARTS CURING ON CONTACT
Slide 48: Winning at Point of Purchase
Winning at Point of Purchase: Packaging, Pricing, Merchandising ee oa ae ———_ a MonisTaT (77 a [MONSTAT | NISTAT] ] Lea Investor Day 2016 PrestigeBrands +s
Slide 49: Monistat results
53% 55% FY 15 FY 16 1.4% 3.1% 1.1% 6.3% FY 15 FY 16 52% 52% FY 15 FY 16 Source: IRI MULO+C-Store period ending March 20, 2016 (1) Represents OTC and Rx treatments Category
Slide 50: Driving Growth by Redefining the Category
Driving Growth by Redefining the Category
Slide 51: Pre-Hydralyte Australian dehydration market
Vomiting & Diarrhea Australian Dehydration Market Pre-Hydralyte™
Slide 52: Dehydration Category Today
Heat & Outdoor Sports & Exercise Travel Vomiting & Diarrhea Work Vomiting & Diarrhea Australian Dehydration Market Pre-Hydralyte™ Dehydration Category Today
Slide 53: Hydralyte claims
(1) Claim made in Australian market only
Slide 54: Highly Targeted Marketing Activation
Highly Targeted Marketing Activation Health Care Professionals | Gear Cs Investor Day 2016 PrestigeBrands s«
Slide 55: Enhanced Placement in Other Locations
Enhanced Placement in Other Locations eer oe Investor Day 2016 PrestigeBrands ss
Slide 56: Leverage Product Innovation as Growth Driver
Leverage Product Innovation as Growth Driver Hydralyte Sports Lea Investor Day 2016 PrestigeBrands s«
Slide 57: Hydralyte revenue growth
FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 Source: Company Information; reflects Total Revenues
Slide 58: BC/Goody's: Revitalizing Legacy Brands
BC] Gooays Revitalizing Legacy Brands
Slide 59: Brand Equity with a Rich Heritage
Brand Equity with a Rich Heritage HEADACHE POWDERS Baone ae Investor Day 2016 PrestigeBrands s >»
Slide 60: BC/Goody's growth approach
Understanding Consumer Insights and Differentiating the Brand New Marketing Campaigns towards New Targets Continuous Product Innovations BC/Goody’s Continues to Drive Growth vs the Category BC/Goody’s is the #1 Analgesic in the Convenience Channel Core Competency in C-Store Fuels Growth
Slide 61: Revitalizing Legacy Brands through Brand Building
Revitalizing Legacy Brands through Brand Building (BC) Gooays| ~~ Product} Packaging BC) ere Goodys ’ Flavors) ae Cs Investor Day 2016 PrestigeBrands «1
Slide 62: Marketing programs
Shopper Marketing Hispanic Marketing Sponsorship / Sampling TV & Digital
Slide 63: Dale Jr. Partnership
Dale Jr. Partnership a Investor Day 2016
Slide 64: BC/Goody's sales growth
FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 Source: IRI MULO+C-Store period ending March 20, 2016 North American Brands
Slide 65: Dramamine: Driving Category Growth
Dramamine Driving Category Growth SS n £ 5 ewer Z a
Slide 66: Dramamine category growth
Source: IRI MULO+C-Store period ending March 20, 2016
Slide 67: Dramamine channel mix
FDM Other Source: Company information
Slide 68: Dramamine renovation
Revitalized Packaging More Impactful Claims New Users New Formulation
Slide 69: Communicating with Consumers When and Where They Need It
Communicating with Consumers When and Where They Need It Dramamine PrestigeBrands «>» Investor Day 2016
Slide 70: Insight Driven Digital Video
Insight Driven Digital Video Dramamine VOMITING — QUEASINESS a q Se eV _w C a A wr ace DIZZINESS - =a — ; _— Investor Day 2016 PrestigeBrands 70
Slide 71: Dramamine channel sales
Mass Drug Convenience Travel Source: IRI MULO+C-Store period ending March 20, 2016
Slide 72: Clear Eyes: Long-Term Success Story
Slide 73: Clear Eyes: A Homegrown Success Story
Clear Eyes: A Homegrown Success Story Clear k Acquired in 2004 Compelling Brand Equity Attributes Favorable Category Dynamics —— Highly Receptive to Product Innovation Nn Investor Day 2016 PrestigeBrands 7;
Slide 74: Sustained Innovation Has Built A Comprehensive Product Line
Sustained Innovation Has Built A Comprehensive Product Line clear eyes. SS CS TS ae Core Offering Multi-Symptom Ss Investor Day 2016 PrestigeBrands 7+
Slide 75: Clear Eyes' Innovation Toolkit
Clear Eyes’ Innovation Toolkit Ciear eyes. Packaging) (8 ) ‘Extension Technology Benefit) Cs Investor Day 2016 PrestigeBrands 7s Eel ia
Slide 76: Most Recent Innovation: Clear Eyes Pure Relief
Our Most Recent Innovation: Clear Eyes® Pure Relief™ Clear Preservative Free Eye Drops Pure Relief” Pure Relief” for Dry Eyes 4" Multi-Symptom Packaging Technology ce) ex rs) m 1H Built-In Purifying Filter Vi Ge Multi-Dose Bottle WU Se Investor Day 2016 PrestigeBrands 7«
Slide 77: Iconic, Highly Memorable Advertising
& Iconic, Highly Memorable Advertising Clear eyes. ra Vanessa Williams Today Baone ae Investor Day 2016 PrestigeBrands 77
Slide 78: Clear Eyes Pure Relief
Clear Eyes Pure Relief Investor Day 2016 ‘Brands 7s
Slide 79: Clear Eyes retail sales
FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 Dollar values in millions Source: MULO + C-Store data, reflects retail dollar sales for respective LTM period
Slide 80: Our Latest Acquisition
Our Latest Acquisition SS n a 5 ewer Z a =
Slide 81: Our Latest Acquisition: DenTek
Our Latest Acquisition <a Airiple Clean Innovative, scale brand witha leading position ina number of the highest growth oral care “pegable section” categories New product opportunities Distributed opportunities in the U.S. and abroad Significant opportunity to increase : spt est } household penetrat
Slide 82: DenTek has Many Avenues to Grow
DenTek has Many Avenues to Grow (Deniek clear Gare eyes. Outcompete Large CPG International Hydralyte Dramamine Gates A Professional Endorsement Penetration/ Awareness f Goodys Ss Investor Day 2016 PrestigeBrands s2
Slide 83: Financial Results and Outlook
Financial Results and Outlook Dave Marberger Chief Financial Officer 6122 EFFerdent fl lh Rene! ——_= — Hydralyic FE) MONIsTAT Pagar S Fa
Slide 84: Revenue growth
Source: Company information per attached reconciliation schedule
Slide 85: Financial highlights since 2013 Investor Day
~80% of portfolio positioned for durable, consistent organic growth ~$430MM of cumulative Adjusted FCF since 2013 Investor Day Completed 4 acquisitions since 2013 Investor Day aggregating $1.1BN Source: Company information per attached reconciliation schedule
Slide 86: Margin profile
30.5% 35.1% 35.9% FY 10 FY 13 FY 16 52.0% 56.3% 58.1% FY 10 FY 13 FY 16 9.7% 14.1% 13.7% FY 10 FY 13 FY 16 11.8% 7.3% 8.5% FY 10 FY 13 FY 16 Source: Company information per attached reconciliation schedule
Slide 87: Margin comparison with peers
69% 59% 58% 52% 49% 45% 45% 45% 41% 39% 37% 32% 31% JNJ CL PG EPC ENR CLX CHD HELE NWL SPB JAH BGS Source: Capital IQ Market data as of May 20, 2016; comparable set includes selected HPC companies Company information per attached reconciliation schedule Jarden and Newell shown separately pre-combina
Slide 88: Peer comparison
Source: Capital IQ Market data as of May 20, 2016; comparable set includes selected HPC companies Jarden and Newell shown separately pre-combination Company information per attached reconciliation schedule 36% 32% 28% 27% 23% 23% 22% 19% 18% 17% 17% 13% 11% JNJ CL PG CHD BGS CLX ENR EPC NWL SPB HELE
Slide 89: Capital expenditures and cash taxes
$10.3 $2.8 $6.1 $3.6 FY 13 FY 14 FY 15 FY 16 Outsourced operating model requires limited capital expenditures Tax basis of acquisitions and NOLs generate lower cash tax rates We expect acquisition-related tax benefits will continue into the future % of Total Revenues: 1.7% 0.5% 0.9% 0.4% $15.0
Slide 90: Free cash flow conversion and yield vs peers
Source: Capital IQ Market data as of May 20, 2016; comparable set includes selected HPC companies Note: Free Cash Flow Conversion defined as Non-GAAP Operating Cash Flow less Capital Expenditures over Adjusted Net Income; Adj. Free Cash Flow Yield defined as Free Cash Flow divided by Market Cap as o
Slide 91: Adjusted free cash flow
$59 $86 $67 $127 $130 $164 $183 >$185 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 Dollar values in millions Source: Company information per attached reconciliation schedule (Outlook)
Slide 92: Leverage ratio
3.2x 3.5x 5.3x 5.0x 4.3x 4.3x 5.8x 5.2x 5.0x 4.3x 3.6x FY 10 FY 11 Q2 FY 11 FY 12 FY 13 FY 14 Q2 FY 15 FY 15 FY 16 FY 17E FY 18E Dollar values in millions; Company information (1) Leverage ratio reflects net debt / covenant defined EBITDA North American Brands (Expectation)
Slide 93: Acquisition capacity
$0.5BN $1.3BN $2.1BN FY 16 FY 17E FY 18E Dollar values in billions; Company information Note: Assumes maximum leverage of 5.5x and average EBITDA acquisition multiple of 8.5x
Slide 94: Acquisition criteria
Compete in categories where we can win Have a strong heritage and connection with consumers Respond to investments and provide innovation opportunities Add to existing core categories or provide entry to new platforms Strong financial profile Accretive to earnings and cash flow Maintai
Slide 95: Revenue, EBITDA, EPS and FCF growth
$290 $438 $597 $806 $88 $134 $204 $289 $0.67 $0.99 $1.53 $2.17 FY 10 FY 12 FY 14 FY 16 $59 $67 $130 $183 18.6% CAGR 21.9% CAGR 20.9% CAGR 21.6% CAGR Dollar values in millions, except price per share Source: Company information per attached reconciliation schedule
Slide 96: FY16 results and FY17 outlook
$806MM, up 12.8% Organic growth of 2.8% $183MM Leverage of 5.0x $2.17, up 16.7% Expected growth of +6% to +8% Organic growth of +1.5% to +2.0% $185MM or more Leverage of ~4.3x $2.30 to $2.36, up +6% to +9% Dollar values in millions Source: Company information per attached reconcili
Slide 97: Long-Term Value Creation Model
Long-Term Value Creation Model Ron Lombardi President & CEO /ONISTAT (anaes
Slide 98: Key themes
team OTC focus emphasis on brand building value proposition formula for growth long-term value creation model
Slide 99: Strengths and long runway
Proven and Repeatable with Long Runway Depth of Leadership Team Strong Market Positions in Niche Categories Proven Operating Model with Superior Profile
Slide 100: Health and wellness trends
Source: “Health & Wellness Strategy”, Market Performance Group 2016
Slide 101: Health and wellness trends
Source: “Health & Wellness Strategy”, Market Performance Group 2016
Slide 102: Delivering Against the Drivers of Our Long-Term Value Creation Strategy
Delivering Against the Drivers of Our Stated Long-Term Value- Creation Strategy .pectation for Future js Upside Potential Long-Term Value Creation Strategy Ne PrestigeBrands 102 Investor Day 2016 8 — 10% Long-Term E.P.S. Growth co
Slide 103: Hydralyte = MONISTAT [ama
——_ ie Hydralyte = MONISTAT [ama eel
Slide 104: Non-GAAP definitions
We define Non-GAAP Organic Revenues on a Constant Currency basis as Total Revenues excluding acquisitions and divestitures and the impact of current year foreign exchange rates on total revenues. We define Non-GAAP Adjusted EBITDA as earnings before interest expense (income), income taxes, depreciat
Slide 105: Non-GAAP measures explanation
We are presenting Non-GAAP Organic Revenues on a Constant Currency basis, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted EBITDA Margin, Non-GAAP Adjusted Gross Margin, Non-GAAP Adjusted Gross Margin percentage, Non-GAAP Adjusted General and Administrative Expense, Non-GAAP Adjusted General and Administ
Slide 106: Organic revenue reconciliation
2016 2015 GAAP Total Revenues 806,247 714,623 Adjustments: Hydralyte revenues (1,217) - Insight revenues (73,630) - DenTek revenues (10,687) - Total adjustments (85,534) - Non-GAAP Organic Revenues 720,713 714,623 Organic Revenue Growth 0.9% Impact of foreign currency exchange rates (13,862) Non-GAA
Slide 107: Adjusted G&A and gross margin reconciliation
2010 2011 2012 2013 2014 2015 2016 GAAP General and Administrative expenses 34,195$ 41,960$ 56,700$ 51,467$ 48,481$ 81,273$ 72,418$ Adjustments Costs associated with CEO transition - - - - - - 1,406 Legal and other professional fees associated with acquisitions - 7,729 13,807 98 1,111 10,974 2,112 T
Slide 108: Adjusted EBITDA reconciliation
2010 2011 2012 2013 2014 2015 2016 GAAP Total Revenues 289,652$ 332,905$ 437,819$ 620,529$ 597,381$ 714,623$ 806,247$ GAAP Net Income 32,115$ 29,220$ 37,212$ 65,505$ 72,615$ 78,260$ 99,907$ Income from Disc Ops 112 (591) - - - - - Loss on sale of disc ops (157) 550 - - - - - Interest Expense, net 22
Slide 109: Adjusted net income and EPS reconciliation
2010 2011 2012 2013 2014 2015 2016 Net Income EPS Net Income EPS Net Income EPS Net Income EPS Net Income EPS Net Income EPS Net Income EPS GAAP Net Income 32,115$ 0.64$ 29,220$ 0.58$ 37,212$ 0.73$ 65,505$ 1.27$ 72,615$ 1.39$ 78,260$ 1.49$ 99,907$ 1.88$ Adjustments Income from discontinued ops. - -
Slide 110: Free cash flow reconciliation
2010 2011 2012 2013 2014 2015 2016 GAAP Net Income 32,115$ 29,220$ 37,212$ 65,505$ 72,615$ 78,260$ 99,907$ Adjustments Adjustments to reconcile net income to net cash provided by operating activities as shown in the statement of cash flows 31,137 26,095 35,674 59,497 50,912 64,668 96,221 Changes in
Slide 111: Cash tax expense reconciliation
Dollar values in thousands 2013 2014 2015 2016 GAAP Provision for Income Taxes 40,529$ 29,133$ 49,198$ 57,278$ Adjustments Deferred Income Taxes (25,505) (19,012) (28,922) (46,152) Non-GAAP Cash Tax Expense 15,024 10,121 20,276 11,126
Slide 112: Projected FY17 free cash flow and EPS reconciliation
Projected FY'17 GAAP Net cash provided by operating activities 190$ Additions to property and equipment for cash (8) Projected Non-GAAP Free Cash Flow 182 Payments associated with acquisitions 3 Adjusted Non-GAAP Projected Free Cash Flow 185$ Dollar values in thousands Low High Projected FY'17 GAAP