Prestige Consumer Healthcare Inc. · NYSE:PBH
Prestige Consumer Healthcare — Prestige Brands Holdings — FY2017 Earnings Presentation
34 slides from Prestige Consumer Healthcare's earnings presentation, May 11, 2017
Slide 1: Review of Fourth Quarter and FY 17 Results
Exhibit 99.2 ae a PrestigeBrands — . - Review of Fourth Quarter and FY 17 Results May 11, 2017
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, organic growth, adjusted EPS, adjusted free cash flow, and
Slide 3: Agenda for Today's Discussion
Agenda for Today's Discussion |. Performance Highlights ll. FY 17 Year in Review Ill. Financial Overview IV. FY 18 Outlook
Slide 4: I. Performance Highlights
I. Performance Highlights ALLL i, Summers ve Dramamine Clear eyes MONISTAT
Slide 5: Q4 FY17 performance highlights
Q4 Revenue of $240.7 million, up 15.8% versus PY Q4 — Organic revenue growth of 1.1%(1) — Revenue growth of 1.9%(1) for Invest for Growth* portfolio — Strong consumption gains at Care Pharma, which resulted in sales growth of +11.5% Consistent gross margin for legacy business Adjusted EPS of $
Slide 6: Strong Financial Performance in FY
Strong Financial Performance in FY 17 Revenue of $882 million, up 9.4% versus FY 16 Organic Revenue growth of +1.0%") and +2.8% for Invest For Growth portfolio Adjusted EPS of $2.37), up 9.2% versus FY 16 Adjusted Free Cash Flow of $196 million”), up 6.9% versus FY 16 Free cash flow genera for debt
Slide 7: II. FY Year in Review
ll. FY 17 Year in Review Summer's Eve’ Clear eyes MONISTAT
Slide 8: Continuing to Deliver Against Strategy
Continuing to Deliver Against Strategy a LeoA Fourth Quarter FY 17 Results PrestigeBrands ;
Slide 9: Manage for Cash / Invest for Growth
Manage for CashInvest for Growth
Slide 10: Recent acquisitions and divestitures timeline
July 2016 December 2016 December 2016 December 2016 February 2016 January 2017 $225MM $825MM
Slide 11: Prestige Brands vs. category growth
2.5% 1.8% LTM Growth 2.3% 1.2% LTM Growth 2.4% 1.7% LTM Growth Prestige Brands Prestige Categories Source: IRI multi-outlet + C-Store retail dollar sales for the period ending 03/29/2017
Slide 12: New product innovation
Consumer research and shopper insights identify unmet needs Match new product opportunities to each brand’s unique positioning Goal to launch 3 to 5 meaningful new product innovations annually Recent new products introduced across our portfolio
Slide 13: Brand extension and new channels
Extend Brand Through Better Consumer Experience or Claims Innovate Through Technology Expand Brand in New Channels C-Stores On-the-Go e-Commerce
Slide 14: Fleet integration progress
“Order-to-cash” integrated sales platform complete Cross sharing of international resources begins Launched “Simply” Summer’s Eve line, additional NPD identified Integrated Women’s Health sales efforts Warehouse and freight consolidated into existing footprint Fleet R&D lab expanding to
Slide 15: Revenue, EBITDA, free cash flow and EPS growth
$86 $127 $164 $196 FY 11 FY 13 FY 15 FY 17 $101 $218 $252 $305 FY 11 FY 13 FY 15 FY 17 $334 $620 $715 $882 FY 11 FY 13 FY 15 FY 17 17.6% CAGR 20.2% CAGR 14.7% CAGR $0.79 $1.50 $1.86 $2.37 FY 11 FY 13 FY 15 FY 17 20.1% CAGR Dollar values in millions, except Adjusted EPS.
Slide 16: Leverage and free cash flow history
~3.2x ~3.5x ~5.0x ~4.3x ~4.3x ~5.2x ~5.0x ~5.7x ~5.0x FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 $59 $86 $67 $127 $130 $164 $183 $196 $205 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 Dollar values in millions. * Peak leverage of 5.75x at close of the Insight Acquisition in Septe
Slide 17: III. Financial Overview
Ill. Financial Ouerview Summer's Eve’ Clear eyes MONISTAT
Slide 18: Q4 and FY17 financial performance
Solid overall financial performance in Q4 and FY 17 − Q4 Revenue of $240.7 million, an increase of 15.8% − FY 17 Adjusted EBITDA(2) of $304.5 million − Q4 Adjusted EPS of $0.54(2), up 3.8% vs prior year, and FY 17 Adjusted EPS of $2.37(2), up 9.2% − Transitional quarter with C.B. Fleet integration
Slide 19: Q4 income statement summary
Revenue growth of +15.8% – Organic growth of 1.1%(1) – Fleet contributed $38.7 million of revenue Adjusted Gross Margin of 55.4% Adjusted A&P 16.3% of Revenue, or $39.2 million Adjusted EBITDA Margin of 31.1%(2) Adjusted Net Income +3.2%(2) over Q4 FY 16 – Fleet contributed $0.01 loss due
Slide 20: Net debt and adjusted free cash flow
Net Debt in March of $2,180 million comprised of: – Cash on hand of $41.9 million – $1,472 million of term loan and revolver – $750 million of bonds Leverage ratio(3) of 5.7x $46.8 $48.7 Adjusted Free Cash Flow $196.0 $183.4 Adjusted Free Cash Flow 6.9% (3.8%) Q4 FY 17 Q4 FY 16 Dollar values in
Slide 21: IV. FY Outlook
IV. FY 18 Outlook
Slide 22: FY18 outlook
Strong momentum in our largest brands and international business going into FY 18 Expect core OTC to outperform category growth Headwinds continue at retail, while Prestige’s portfolio of need-based brands continues to be well positioned for future long-term growth Revenue growth of +18% to
Slide 23: Long-Term Value Creation Strategy
Long-Term Value Creation Strategy Expectation for Future Long-Term Strong and Proven and Organic Growth of Consistent Free Cash Repeatable MA 2.0% to 3.0% Flow Generation Strategy i, o Jy Upside Long-Term E.P.S. Growth ca Potential Long-Term Value Creation Strategy SS Fourth Quarter FY 17 Results Pr
Slide 24: as Fourth Quarter FY Results PrestigeBrands «
as Fourth Quarter FY 17 Results PrestigeBrands 2 «
Slide 25: Non-GAAP footnotes
(1) Organic Revenue Growth is a Non-GAAP financial measure and is reconciled to its most closely related GAAP financial measure in our earnings release in the “About Non-GAAP Financial Measures” section. (2) Adjusted Gross Margin, Adjusted A&P, Adjusted G&A, Adjusted EBITDA, Adjusted EBITDA Margin,
Slide 26: Organic revenue reconciliation
Dollar values in thousands. Three Months Ended Mar. 31, Twelve Months Ended March. 31, 2017 2016 2017 2016 GAAP Total Revenues 240,670$ 207,855$ 882,060$ 806,247$ Adjustments: Revenues associated with acquisitions (43,125) - (94,293) - Revenues associated with divested brands - (12,460) - (26,002) T
Slide 27: Adjusted G&A reconciliation
Dollar values in thousands. Three Months Ended Mar. 31, Twelve Months Ended March. 31, 2017 2016 2017 2016 GAAP General and Administrative Expense 28,760$ 20,232$ 89,143$ 72,418$ Adjustments: Costs Associated with CEO transition - - - 1,406 Legal and professional fees associated with acquisitions an
Slide 28: Adjusted EBITDA reconciliation
Dollar values in thousands. Three Months Ended Mar. 31, Twelve Months Ended March. 31, 2017 2016 2017 2016 GAAP Net (Loss) Income 11,090$ 13,936$ 69,395$ 99,907$ Interest expense, net 32,832 23,147 93,343 85,160 (Benefit) provision for income taxes 7,712 10,667 41,455 57,278 Depreciation and amortiz
Slide 29: Adjusted EBITDA reconciliation 2011-2017
Dollar values in thousands. 2011 2012 2013 2014 2015 2016 2017 GAAP Net Income 29,220$ 37,212$ 65,505$ 72,615$ 78,260$ 99,907$ 69,395$ Income from Disc Ops (591) - - - - - - Loss on sale of disc ops 550 - - - - - - Interest Expense, net 27,317 41,320 84,407 68,582 81,234 85,160 93,343 Provision for
Slide 30: Adjusted EPS reconciliation
Dollar values in thousands. Three Months Ended Mar. 31, Twelve Months Ended March. 31, 2017 2016 2017 2016 Net Income EPS Net Income EPS Net Income EPS Net Income EPS GAAP Net Income 11,090$ 0.21$ 13,936$ 0.26$ 69,395$ 1.30$ 99,907$ 1.88$ Adjustments: Inventory step-up charges and other costs associ
Slide 31: Adjusted EPS reconciliation 2011-2017
Dollar values in thousands. 2011 2012 2013 2014 2015 2016 2017 Net Income EPS Net Income EPS Net Income EPS Net Income EPS Net Income EPS Net Income EPS Net Income EPS GAAP Net Income 29,220$ 0.58$ 37,212$ 0.73$ 65,505$ 1.27$ 72,615$ 1.39$ 78,260$ 1.49$ 99,907$ 1.88$ 69,395$ 1.30$ Adjustments Income
Slide 32: Free cash flow reconciliation
Dollar values in thousands. Three Months Ended Mar. 31, Twelve Months Ended March. 31, 2017 2016 2017 2016 GAAP Net (Loss) Income 11,090$ 13,936$ 69,395$ 99,907$ Adjustments: Adjustments to reconcile net (loss) income to net cash provided by operating activities as shown in the Statement of Cash Flo
Slide 33: Free cash flow reconciliation 2010-2017
Dollar values in thousands, except per share data. 2010 2011 2012 2013 2014 2015 2016 2017 GAAP Net Income 32,115$ 29,220$ 37,212$ 65,505$ 72,615$ 78,260$ 99,907$ 69,395$ Adjustments Adjustments to reconcile net income to net cash provided by operating activities as shown in the statement of cash fl
Slide 34: FY18 projected EPS and free cash flow reconciliation
2018 Projected EPS Low High Projected FY'18 GAAP EPS $ 2.50 $ 2.60 Adjustments: Costs associated with Fleet integration(1) 0.08 0.08 Total Adjustments 0.08 0.08 Projected Non-GAAP Adjusted EPS $ 2.58 $ 2.68 Dollar values in millions, except per share data. (1) Acquisition related items represent cos
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