Prestige Consumer Healthcare Inc. · NYSE:PBH

Prestige Consumer Healthcare — Q3 FY2020 Earnings Presentation

22 slides from Prestige Consumer Healthcare's earnings presentation, Feb 6, 2020

  1. Slide 1: Third Quarter FY 2020 Results

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  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 Revenues, Organic Revenue, Adjusted EPS, and Adjusted Free Cash Flow; the m

  3. Slide 3: Agenda for Today's Discussion

    Agenda for Today's Discussion I. Performance Highlights II. Financial Oueruiew Ill. FY 20 Outloo� p� Third Qu arter FY 20 Results H£ALTHCAR£ 3

  4. Slide 4: I. Performance Highlights

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  5. Slide 5: Q3 Highlights

     Q3 Revenue of $241.6 million, up 0.5% versus prior year on an organic basis(1) – Strong growth in international segment driven by Australia  Consumption growth(2) of ~2% continues to meaningfully outpace revenue growth  Adjusted EPS(3) of $0.81, up 11.0% versus prior year  Adjusted Gross Margin

  6. Slide 6: Strong Financial Performance YTD, Raising FY Adjusted EPS Guidance

    Strong Financial Performance YTD g_3 FY 20 Raising FY 20 AdjustedEPS(s) Guidance p� Third �u arter FY 20 Results H£ALTHCAR£ 6

  7. Slide 7: Growing International Presence

    Growing International Presence Key Brands in Key Geographies Sustained Growth % of YTD Revenue International All Other Australia 57% 17% Singapore & ROW Core 29% 9% Power Core Europe 14% (1%) Note: All growth figures exclude the effect of currency fluctuations

  8. Slide 8: Category Defining Brand Initiatives to Increase Penetration

    Category Defining Brand Initiatives to Increase Penetration Corporate Social Responsibility Product Extensions Vomiting Heat & Sports & Work Travel & Diarrhea Outdoor Exercise Long-Term Opportunity Opportunity Long-Term  Shifting marketing: traditional to digital  Working with Foodbank Australia a

  9. Slide 9: II. Financial Overview

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  10. Slide 10: Overall financial performance as expected in the quarter

     Overall financial performance as expected in the quarter: − Q3 Revenue of $241.6 million, up 0.5% organically(1) versus prior year − Q3 Adjusted EBITDA(3) of $86.9 million, up 2.0% versus prior year − Q3 Adjusted EPS(3) of $0.81, an increase of 11.0% versus prior year, and YTD FY 20 Adjusted EPS(3

  11. Slide 11: Organic Revenue growth and income statement

     Organic Revenue growth Q3 FY 20 Q3 FY 19 % Chg Q3 FY 20 Q3 FY 19 % Chg approximately flat versus prior Total Revenue $ 241.6 $ 241.4 0.1% $ 711.8 $ 734.8 (3.1%) year(1) Adjusted Gross Margin(3) 140.1 139.2 0.6% 412.3 417.5 (1.3%) % Margin 58.0% 57.7% 57.9% 56.8% – Consumption growth continues to m

  12. Slide 12: Net Debt, Leverage and Free Cash Flow

     Net Debt(3) at December 31 of $1.7 billion; Leverage (4) Q3 FY 20 Q3 FY 19 YTD Q3 FY 20 YTD Q3 FY 19 Ratio of 4.9x at end of Q3 – Successfully repriced and extended maturity for (0.4%) $400 million Senior Notes $154.3 $154.9  $50 million debt paydown in Q3 and ~$100 million YTD (1.6%)  Significa

  13. Slide 13: III. FY Outlook

    Ill. FY 20 Outloo� Dramamine· 4SBM#ISW Fleet® Summers£ve· C·•e�a··, L:T:I eyes®Ii I.Ev· t§thAW MONISTAT�

  14. Slide 14: FY 20 Outlook

     Continuing to gain market share with consumers and grow categories for retailers  Portfolio of need-based brands continues to be well positioned for long-term growth, offsetting inventory reductions at retail  Expect no change to retailer de-stocking trends in medium term, particularly in the dr

  15. Slide 15: Third Quarter FY Results Appendix

    p� rd �u arter FY 20 Results H£ALTHCAR£ 1 5

  16. Slide 16: Non-GAAP footnotes and definitions

    (1) Organic Revenue is a Non-GAAP financial measure and is reconciled to the most closely related GAAP financial measure in the attached Reconciliation Schedules and / or our earnings release in the “About Non-GAAP Financial Measures” section. (2) Total company consumption is based on domestic IRI m

  17. Slide 17: Organic Revenue reconciliation

    Three Months Ended Dec. 31, Nine Months Ended Dec. 31, 2019 2018 2019 2018 (In Thousands) GAAP Total Revenues $ 241,552 $ 241,414 $ 711,775 $ 734,751 Revenue Growth 0.1% (3.1%) Adjustments: Revenue associated with divestiture - - - (19,811) Allocated costs that remain after divestiture - - - (659) I

  18. Slide 18: Adjusted G&A and Gross Profit reconciliation

    Three Months Ended Dec. 31, Nine Months Ended Dec. 31, Three Months Ended Dec. 31, Nine Months Ended Dec. 31, 2019 2018 2019 2018 2019 2018 2019 2018 (In Thousands) (In Thousands) GAAP Total Revenues $ 241,552 $ 241,414 $ 711,775 $ 734,751 GAAP General and Administrative Expense $ 21,308 $ 20,485 $

  19. Slide 19: EBITDA and Adjusted EBITDA reconciliation

    Three Months Ended Dec. 31, Nine Months Ended Dec. 31, 2019 2018 2019 2018 (In Thousands) GAAP Net Income $ 38,058 $ 38,167 $ 105,235 $ 103,474 Interest expense, net 24,275 26,327 73,772 79,337 Provision for income taxes 12,496 12,829 35,381 37,501 Depreciation and amortization 7,381 7,887 21,664 24

  20. Slide 20: Adjusted EPS reconciliation

    Three Months Ended Dec. 31, Nine Months Ended Dec. 31, 2019 2018 2019 2018 Net Income EPS Net Income EPS Net Income EPS Net Income EPS (In Thousands, except per share data) GAAP Net Income $ 38,058 $ 0.75 $ 38,167 $ 0.73 $ 105,235 $ 2.05 $ 103,474 $ 1.97 Adjustments: Transition and other costs assoc

  21. Slide 21: Free Cash Flow reconciliation

    Three Months Ended Dec. 31, Nine Months Ended Dec. 31, 2019 2018 2019 2018 (In Thousands) GAAP Net Income $ 38,058 $ 38,167 $ 105,235 $ 103,474 Adjustments: Adjustments to reconcile net income to net cash provided by operating activities as shown in the Statement of Cash Flows 17,089 14,371 45,985 3

  22. Slide 22: Projected FY'20 EPS and Free Cash Flow reconciliation

    2020 Projected 2020 Projected EPS Free Cash Low High Flow Projected FY'20 GAAP EPS $ 2.67 $ 2.69 (In millions) Adjustments: Projected FY'20 GAAP Net Cash provided by operating activities $ 205 Integration of new logistics provider (a) 0.15 0.15 Additions to property and equipment for cash (15) Loss

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