Prestige Consumer Healthcare Inc. · NYSE:PBH

Prestige Consumer Healthcare — Prestige Brands Holdings — Q1 FY2019 Earnings Presentation

22 slides from Prestige Consumer Healthcare's earnings presentation, Aug 2, 2018

  1. Slide 1: Growing Categories as a Consumer Healthcare Company

    GROWING ee CATEGORIES ‘1cstigeBrands AS A aM | August 2"4, 7

  2. 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 market posit

  3. Slide 3: Agenda for Today's Discussion

    Ree Agenda for Today's Discussion |. Performance Highlights Il, Financial Overview Ill. FY 19 Outlook and the Road Ahead oa First Quarter FY 19 Resul 3

  4. Slide 4: I. Performance Highlights

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  5. Slide 5: Q1 Results: Solid Start to the Year

    Q1 Results: Solid Start to the Year Revenue of $254.0 in-line with expectations Adjusted EPS of $0.68), up 3.0% versus 91 FY 18 Adjusted Free Cash Flow of $53.6 million®; repurchased $50 million of shares during the quarter Completed divestiture of Household Cleaning Segment to become a focused Cons

  6. Slide 6: Q1 Revenue of $254.0 million, in-line with expectations

     Q1 Revenue of $254.0 million (1.0%) versus PY Q1 – In-line with expectations – Consumption continues to meaningfully outpace revenue growth  As expected, impacted by shipment timing of new BC/Goody’s packaging and change in revenue recognition accounting policies  Adjusted EPS of $0.68(2), up 3.

  7. Slide 7: Continues Brand-Building Efforts

    Continues Brand-Building Efforts  Launch of new packaging demonstrates on-going commitment to brand building efforts  Packaging is a by-product of extensive studies, research, consumer insights and feedback  Expect Revenue and Gross Margin headwinds from rollout to continue into Q2 – Impacted by

  8. Slide 8: Divestiture Provides Strategic Benefits

    Comments Divestiture Provides Strategic Benefits  Sold Household Cleaning portfolio in early July for $69.0 million in cash Strategic Exit from a Declining Category  Category declines 2-3% annually(1) Reduces Drag on Overall Portfolio  $80.6 million of Revenue and $11.6 million of Contribution Pr

  9. Slide 9: Focused Consumer Healthcare Company

    FY 2011 FY 2015 FY 2019 PF – 100% OTC* OTC Household Dermatologicals Women’s 10% Health Eye & Ear Care 27% 11% Oral 12% Care 16% 12% GI Cough / 12% Cold Analgesics ~$1 Billion Focused Consumer Healthcare Company* *Based on FY18 reported revenue figures excluding the Household Cleaning Segment

  10. Slide 10: Introducing the New Prestige Consumer Healthcare

    Introducing the New Prestige Consumer Healthcare Prestige Consumer Healthcare

  11. Slide 11: II. Financial Overview

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  12. Slide 12: Overall financial performance in-line with expectations

     Overall financial performance in-line with expectations in the quarter: Needed? − Revenue of $254.0 million, a decrease of (1.0%) − Adjusted EPS(2) of $0.68, up 3.0% − Adjusted Free Cash Flow(2) decrease of (5.2%) to $53.6 million Q1 FY 19 Q1 FY 18 (1.0%) $254.0 $256.6 (9.2%) 3.0% (5.2%) $90.7 $82

  13. Slide 13: Q1 income statement summary

    Q1 FY 19 Q1 FY 18 % Chg  Revenue decline of (1.0)% Total Revenue 254.0$ 256.6$ (1.0%) (2) Adjusted Gross Profit 140.8 146.1 (3.6%) – Revenue growth impacted by transition to new BC / Goody’s % Margin 55.4% 56.9% packaging and change in revenue recognition accounting policies (2) Adjusted A&P 37.1 3

  14. Slide 14: Adjusted Free Cash Flow and net debt

    Q1 FY 19 Q1 FY 18  Q1 Adjusted Free Cash Flow(2) impacted by BC and Goody’s inventory build to support new product launch as well as cadence of profitability (5.2%)  Net Debt at June 30 of $1,979 million; leverage ratio(3) of 5.4x at end of Q1 $56.5 $53.6 – Following Household divestiture, expect

  15. Slide 15: III. FY Outlook and the Road Ahead

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  16. Slide 16: FY19 outlook and momentum

     Strong momentum across our portfolio; continue to win share versus categories and private label  Household divestiture provides further focus on consumer healthcare business  Continue to gain market share with consumers and grow categories with retailers  Prestige’s portfolio of need-based bran

  17. Slide 17: Prestige Consumer Healthcare

    Prestige Consumer Healthcare

  18. Slide 18: Footnotes

    (1) Total category consumption is based on domestic IRI multi-outlet + C-Store retail dollar sales for the three year period ending 6- 17-18. (2) Adjusted Gross Profit, Adjusted Gross Margin, Adjusted A&P, Adjusted G&A, Adjusted EBITDA, Adjusted Operating Income, Adjusted Net Income, Adjusted EPS an

  19. Slide 19: Reconciliation: gross margin and A&P

    Three Months Ended Jun. 30, Three Months Ended Jun. 30, 2018 2017 2018 2017 (In Thousands) (In Thousands) GAAP Total Revenues $ 253,980 $ 256,573 GAAP Advertising and Promotion Expense $ 37,111 $ 36,944 GAAP Advertising and Promotion Expense as a Percentage of GAAP Gross Profit $ 140,623 $ 143,476 G

  20. Slide 20: Reconciliation: EBITDA and G&A

    Three Months Ended Jun. 30, 2018 2017 (In Thousands) Three Months Ended Jun. 30, GAAP Net Income $ 34,466 $ 33,759 2018 2017 Interest expense, net 25,940 26,341 (In Thousands) Provision for income taxes 11,994 18,929 GAAP General and Administrative Expense $ 23,941 $ 20,410 Depreciation and amortiza

  21. Slide 21: Reconciliation: net income, EPS and free cash flow

    Three Months Ended Jun. 30, 2018 2017 Three Months Ended Jun. 30, Net Net 2018 2017 Income EPS Income EPS (In Thousands) (In Thousands, except per share data) GAAP Net Income $ 34,466 $ 33,759 GAAP Net Income $ 34,466 $ 0.65 $ 33,759 $ 0.63 Adjustments: Adjustments: Adjustments to reconcile net inco

  22. Slide 22: 2019 projected EPS and free cash flow reconciliation

    2019 Projected Free Cash 2019 Projected EPS Flow Low High (In millions) Projected FY'19 GAAP EPS $ 2.80 $ 2.88 Projected FY'19 GAAP Net Cash provided by operating activities Adjustments: $ 202 Sale of Household Cleaning business 0.02 0.02 Additions to property and equipment for cash (13) Tax adjustm

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