Prestige Consumer Healthcare Inc. · NYSE:PBH
Prestige Consumer Healthcare — Prestige Brands Holdings — Q3 FY2016 Earnings Presentation
20 slides from Prestige Consumer Healthcare's earnings presentation, Feb 4, 2016
Slide 1: Review of Third Quarter FY 16 Results
Review of Third Quarter FY 16 Results February 4, 2016 Exhibit 99.2
Slide 2: Safe Harbor Disclosure
T h i r d 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 the expected timing for consummating and integrating the DenTek acquisition, the gr
Slide 3: Agenda for Today's Discussion
T h i r d 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. Financial Overview III. FY 16 Outlook and the Road Ahead
Slide 4: Performance Highlights
~ Performance Highlights « pt dransmee + pt Demanne ees! Pe a a PrestigeBrands Third Quarter FY 16 Results
Slide 5: Solid Q3 Results In Line with Expectations
T h i r d Q u a r t e r F Y 1 6 R e s u l t s 5 Solid Q3 Results In Line with Expectations Q3 consolidated Revenue of $200.2 million, up 1.3% versus prior year Q3, and up 3.2%(1) on a constant currency basis – Q3 Invest for Growth (Core OTC + International Revenue) up 3.4% or 5.7% on a constant cu
Slide 6: Company on Track to Meet FY2016 Expectations
T h i r d Q u a r t e r F Y 1 6 R e s u l t s 6 Solid Q3 Results Company on Track to Meet FY2016 Expectations Expected Q4 up 0.5% to 1.5% Full year up 10% to 11% Full Year Revenue Outlook Expect full year Adjusted EPS at high end of $2.05 to $2.10(7) range, or slightly above Adjusted E.P.S.
Slide 7: Continued Core OTC Consumption Growth and Sales Momentum
T h i r d Q u a r t e r F Y 1 6 R e s u l t s 7 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 presented on
Slide 8: Q3 Investment in Core OTC and International Driving Organic Growth
T h i r d Q u a r t e r F Y 1 6 R e s u l t s 8 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% Q3 Investment in Core OTC a
Slide 9: Expect to Complete Acquisition of DenTek in Early February
T h i r d Q u a r t e r F Y 1 6 R e s u l t s 9 Expect to Complete Acquisition of DenTek in Early February Innovative, scale brand with a leading position in a number of the highest growth oral care categories New product development, sales and marketing capabilities New product pipeline oppor
Slide 10: New $100MM+ Oral Care Platform
T h i r d Q u a r t e r F Y 1 6 R e s u l t s 10 New $100MM+ Oral Care Platform ~$130 ~$120 ~$120 ~$100 ~$110 Women’s Health Cough & Cold Analgesics Eye & Ear Care Oral Care Dollar values in millions Note: Figures represent Total Revenues.
Slide 11: Transaction Nears Objective of 85% Invest for Growth Brands
T h i r d Q u a r t e r F Y 1 6 R e s u l t s 11 Transaction Nears Objective of 85% of Portfolio Representing Invest for Growth Brands Core OTC / International Other OTC / Household Pre-Acquisition Period Contribution to Portfolio: Investment: Targeted Mix Over Time: Invest for Growth Manage for Cas
Slide 12: Proven Path for Value Creation
T h i r d Q u a r t e r F Y 1 6 R e s u l t s 12 Expect to Complete by End of Q3 FY 17 On-Going 12-24 Months Regulatory / Quality Assurance Systems / Back-Office Supply Chain Sales & Distribution Common IT systems and processes Leverage existing organization Brand Building Regulatory and quali
Slide 13: Financial Overview
T h i r d Q u a r t e r F Y 1 6 R e s u l t s 13
Slide 14: Key Financial Results for Third Quarter Performance
T h i r d Q u a r t e r F Y 1 6 R e s u l t s 14 Key Financial Results for Third Quarter Performance Solid overall financial performance in the quarter − Revenue of $200.2 million, an increase of 1.3% − Revenue growth of 3.2%(1) excluding the impact of foreign currency − Adjusted EPS of $0.53(2),
Slide 15: FY 16 Third Quarter and YTD Consolidated Financial Summary
T h i r d Q u a r t e r F Y 1 6 R e s u l t s 15 FY 16 Third Quarter and YTD Consolidated Financial Summary Q3 Adjusted Gross Margin of 58.3% Q3 A&P of 15.0% of Total Revenue, or $29.9 million Q3 G&A consistent with recent run-rate and increase versus prior year due to Insight acquisition and
Slide 16: Exceptional Free Cash Flow Trends and Debt Profile
T h i r d Q u a r t e r F Y 1 6 R e s u l t s 16 Three Months Ended Nine Months Ended Dec '15 Dec '14 Dec '15 Dec '14 Net Income - As Reported 28.0$ 21.3$ 86.0$ 54.5$ Depreciation & Amortization 6.1 5.2 17.5 12.0 Other Non-Cash Operating Items 13.0 12.6 44.5 30.7 Working Capital (1.3) 8.0 (11.5) 7.0
Slide 17: FY 16 Outlook and the Road Ahead
T h i r d Q u a r t e r F Y 1 6 R e s u l t s 17
Slide 18: Staying the Strategic Course to Continue Shareholder Value Creation
T h i r d Q u a r t e r F Y 1 6 R e s u l t s 18 Staying the Strategic Course to Continue Shareholder Value Creation − Consumption driving good momentum into Q4 − Retail environment continues to present headwinds, expected to continue through FY 17 − Expected Fx impact of approximately +$15MM full y
Slide 19: Q&A
T h i r d Q u a r t e r F Y 1 6 R e s u l t s 19 Q&A
Slide 20: Appendix
T h i r d Q u a r t e r F Y 1 6 R e s u l t s 20 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 Measu
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