Prestige Consumer Healthcare Inc. · NYSE:PBH
Prestige Consumer Healthcare — Prestige Brands Holdings — Q4 FY2016 Earnings Presentation
27 slides from Prestige Consumer Healthcare's earnings presentation, May 12, 2016
Slide 1: Review of Fourth Quarter and FY 16 Results
Review of Fourth Quarter and FY 16 Results May 12, 2016 Exhibit 99.2
Slide 2: Safe Harbor Disclosure
F o u r t h Q u a r t e r & F Y 1 6 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 regarding our expected future operating results, including revenue growth, the impact of
Slide 3: Agenda for Today's Discussion
F o u r t h Q u a r t e r & F Y 1 6 R e s u l t s 3 Agenda for Today’s Discussion I. Performance Highlights II. FY 16 Year in Review III. Financial Overview IV. FY 17 Outlook and the Road Ahead
Slide 4: Performance Highlights
F o u r t h Q u a r t e r & F Y 1 6 R e s u l t s 4
Slide 5: Fourth Quarter and FY Performance Highlights
F o u r t h Q u a r t e r & F Y 1 6 R e s u l t s 5 Fourth Quarter FY 16 Performance Highlights Exceeded Fourth Quarter and Full Year Outlook Q4 consolidated Revenue of $207.9 million, up 9.4% versus PY Q4 — Organic growth of +5.0%(1) on a constant currency basis, and +3.7% on a reported basis ver
Slide 6: Company Delivered Strong Financial Performance in FY 16
F o u r t h Q u a r t e r & F Y 1 6 R e s u l t s 6 Company Delivered Strong Financial Performance in FY 16 Revenue of $806 million, up 12.8% versus FY 15 Full Year Revenue Adjusted EPS of $2.17, up 16.7% versus FY 15, well ahead of top line growth Adjusted E.P.S. Adjusted Free Cash Flow of $1
Slide 7: FY 16 Year in Review
F o u r t h Q u a r t e r & F Y 1 6 R e s u l t s 7
Slide 8: FY 16: Another Successful Year Executing Against Our Strategy
F o u r t h Q u a r t e r & F Y 1 6 R e s u l t s 8 FY 16: Another Successful Year Executing Against Our Strategy Strong organic growth in Core OTC and international Portfolio strategy achieving desired results New product development is key to brand-building strategy Consistent and increasi
Slide 9: Continued Core OTC Consumption Growth and Sales Momentum
F o u r t h Q u a r t e r & F Y 1 6 R e s u l t s 9 Continued Core OTC Consumption Growth and Sales Momentum Source: IRI multi-outlet + C-Store retail dollar sales growth for relevant period. Data reflects retail dollar sales percentage growth versus prior period; FY’16 Organic sales growth presente
Slide 10: Investment in Core OTC and International Driving Organic Growth
F o u r t h Q u a r t e r & F Y 1 6 R e s u l t s 10 Core OTC International Other OTC Household Contribution to Portfolio: # of Brands: Investment: Targeted Mix Over Time(4)(5): Invest for Growth Manage for Cash Flow Generation ~25% of Total Brands ~75% of Total Brands 63% 15% Investment in Core OTC
Slide 11: New Product Development Is a Key Part of Brand-Building Strategy
F o u r t h Q u a r t e r & F Y 1 6 R e s u l t s 11 New Product Development Is A Key Part of Our Comprehensive Brand-Building Strategy Goal to launch 3 to 5 meaningful new product innovations annually Consumer research and shopper insights identify unmet needs Identify new product opportuniti
Slide 12: New Product Development Efforts Leverage Our Proven Expertise
F o u r t h Q u a r t e r & F Y 1 6 R e s u l t s 12 New Product Development Efforts Leverage Our Proven Expertise Proprietary bottle delivers bacteria-free eye drops without preservatives, extending the brand into a new market segment, “preservative-free”. An Innovative Treatment A New Clinically T
Slide 13: Strong Cash Flow Leads to Rapid De-Levering and Increased M&A Capacity
F o u r t h Q u a r t e r & F Y 1 6 R e s u l t s 13 Strong and Consistent Cash Flow Leads to Rapid De-Levering and Increased M&A Capacity FY 15 FY 16E FY 17E ~$1.5 BN +$2.0 BN ~$0.5 BN Leverage Ratio(3) Illustrative Financing Capacity (6) Reduced Net Debt by >$150 million in FY 15 excluding acqui
Slide 14: Proven and Repeatable M&A Strategy
F o u r t h Q u a r t e r & F Y 1 6 R e s u l t s 14 Proven and Repeatable M&A Strategy Seven Acquisitions Completed in Past Six Years for TEV of ~$2BN Platform Expansion Geographic Expansion 2010 2012 2013 2014 2011 April 2014 July 2013 April 2014 December 2011 December 2010 September 2010 November
Slide 15: Strategy Has Delivered Consistently Strong Financial Performance
F o u r t h Q u a r t e r & F Y 1 6 R e s u l t s 15 $88 $134 $204 $289 FY 10 FY 12 FY 14 FY 16 $290 $438 $597 $806 FY 10 FY 12 FY 14 FY 16 Net Sales Strategy Has Delivered Consistently Strong Financial Performance $0.67 $0.99 $1.53 $2.17 FY 10 FY 12 FY 14 FY 16 $59 $67 $130 $183 FY 10 FY 12 FY 14 F
Slide 16: Financial Overview
F o u r t h Q u a r t e r & F Y 1 6 R e s u l t s 16
Slide 17: Key Financial Results for Fourth Quarter Performance
F o u r t h Q u a r t e r & F Y 1 6 R e s u l t s 17 Key Financial Results for Fourth Quarter Performance Solid overall financial performance in the quarter − Revenue of $207.9 million, an increase of 9.4% − Organic Revenue growth of 5.0%(1) excluding the impact of foreign currency − Adjusted EPS
Slide 18: Fourth Quarter and FY 16 Consolidated Financial Summary
F o u r t h Q u a r t e r & F Y 1 6 R e s u l t s 18 Mar '16 Mar '15 % Chg Mar '16 Mar '15 % Chg Total Revenue 207.9$ 190.0$ 9.4% 806.2$ 714.6$ 12.8% Adj. Gross Margin 119.6 110.1 8.7% 468.6 408.4 14.7% % Margin 57.6% 57.9% 58.1% 57.2% A&P 26.6 25.4 4.7% 110.8 99.7 11.2% % Total Revenue 12.8% 13.3%
Slide 19: Debt Profile & Financial Compliance
F o u r t h Q u a r t e r & F Y 1 6 R e s u l t s 19 Debt Profile & Financial Compliance: Net Debt at 03/31/16 of $1,625 million comprised of: – Cash on hand of $27 million – $903 million of term loan and revolver – $750 million of bonds and notes Leverage ratio(3) of ~5.0x Exceptional Free Cash
Slide 20: FY 17 Outlook and the Road Ahead
F o u r t h Q u a r t e r & F Y 1 6 R e s u l t s 20
Slide 21: Staying the Strategic Course to Continue Shareholder Value Creation
F o u r t h Q u a r t e r & F Y 1 6 R e s u l t s 21 Staying the Strategic Course to Continue Shareholder Value Creation Continue Invest for Growth market share expansion Increase digital investments Focus on new product development and marketing innovation Expand focus on developing profess
Slide 22: FY 17 Full Year Outlook
F o u r t h Q u a r t e r & F Y 1 6 R e s u l t s 22 FY 17 Full Year Outlook Strong momentum in our largest brands and international business going into FY 17 Expect core OTC to outperform category growth Headwinds continue at retail from consolidations in Drug and Dollar and retailer bottom l
Slide 23: Q&A
F o u r t h Q u a r t e r & F Y 1 6 R e s u l t s 23 Q&A
Slide 24: Appendix
F o u r t h Q u a r t e r & F Y 1 6 R e s u l t s 24 Appendix (1) Revenue Growth and Organic Revenue Growth on a constant currency basis are Non-GAAP financial measures and are reconciled to their most closely related GAAP financial measures in our earnings release in the “About Non-GAAP Financial M
Slide 25: Reconciliation Schedules: Adjusted EBITDA
F o u r t h Q u a r t e r & F Y 1 6 R e s u l t s 25 Reconciliation Schedules Adjusted EBITDA Dollar values in thousands. 2010 2011 2012 2013 2014 2015 2016 GAAP Net Income 32,115$ 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)
Slide 26: Reconciliation Schedules: Adjusted EPS
F o u r t h Q u a r t e r & F Y 1 6 R e s u l t s 26 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$
Slide 27: Reconciliation Schedules Cont'd: Adjusted Free Cash Flow
F o u r t h Q u a r t e r & F Y 1 6 R e s u l t s 27 Reconciliation Schedules Cont’d Adjusted Free Cash Flow Dollar values in thousands. 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 c
Prestige Brands Holdings — Q4 FY2016 Earnings Presentation on 6ix