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8-K - PRESTIGE BRANDS HOLDINGS 8-K MAY 13, 2010 - Prestige Consumer Healthcare Inc. | pbhform8kmay132010.htm |
Exhibit
99.1
For
Release on May 13, 2010 at 6:00am ET
Prestige
Brands Holdings, Inc. Reports Fourth Quarter and Fiscal 2010
Results
Irvington,
NY—May 13, 2010—Prestige Brands Holdings, Inc. (NYSE-PBH) today
reported results for the fourth fiscal quarter and fiscal year ended March 31,
2010.
Revenues
for the fourth fiscal quarter were $71.4 million, which were $2.8 million, or 4%
greater than the fourth quarter of fiscal 2009. These results reflect revenue
increases in the over-the-counter healthcare and household cleaning products
segments, and a decline in the personal care products segment. Contributing to
the over-the-counter healthcare results was an increase in other revenues which
reflects royalty revenue received as a result of a legal
settlement.
Reported
net income for the fourth fiscal quarter was $3.3 million, or $0.07 per diluted
share, compared to a loss of $211.1 million or ($4.22) per diluted share in the
prior year comparable quarter. Excluding charges for the impairment of
intangible assets and loss on extinguishment of debt, net income (adjusted)
would have been $7.4 million or $0.15 per diluted share during the 2010 fourth
quarter compared to $9.0 million or $0.18 per diluted share in the prior year
comparable period. Net income (adjusted) is a “non-GAAP financial
measure.” A table is included with the financial statements at the end of this
news release which reconciles net income (adjusted) to net income, the most
directly comparable measure presented in accordance with generally accepted
accounting principles.
The
decline in net income (adjusted) from 2009 to 2010 was primarily due to
increased advertising and promotion (A&P) and general and administrative
(G&A) expenses.
Commenting
on the results, Matthew Mannelly, President and CEO said, “We are pleased with
our revenue growth for the fourth quarter. Our results reflect our commitment to
investing in and growing our core OTC brands. Our focus will continue to be
against these core brands as we build upon the fourth quarter momentum in fiscal
year 2011. In addition, we successfully completed our debt refinancing which we
expect to provide us with ample liquidity through 2018, and additional borrowing
capacity should an appropriate acquisition opportunity arise.”
Results
by Segment for Fourth Fiscal Quarter
Over-The-Counter
Healthcare
Net
revenues for the OTC segment were $42.6 million, $2.8 million or 7% greater than
the prior year comparable period. Net sales were $39.5 million, 1% below last
year’s net sales of $39.8 million. Increases in sales of Clear Eyes®, Murine®,
Compound W®, Dermoplast® and The Doctor’s® NightGuard™ were offset by sales
declines in Chloraseptic®, Little Remedies®, and the Allergen Block products.
Other revenue increased compared to the prior year due to the favorable outcome
of a legal dispute.
Household
Cleaning Products
This
segment reported net revenues of $27.0 million, $300 thousand greater than the
prior year comparable period. Sales increases in the Spic and Span® and Chore
Boy® brands were offset by a slight decline in the Comet® brand.
Personal
Care Products
Net
revenues for the personal care segment were $1.8 million, $300 thousand or 14%
below last year’s fourth fiscal quarter. The sales decline was primarily due to
decreases in sales of Cutex®.
Fiscal
Year 2010
The
Company reported total revenues of $302.0 million for the fiscal year ended
March 31, 2010, slightly below fiscal 2009 total revenues of $303.1 million.
Reported net income of $32.1 million, or $0.64 per diluted share for 2010,
compared to a loss of $186.8 million, or ($3.74) per diluted share in 2009.
Excluding charges for the impairment of intangible assets and loss on
extinguishment of debt, and the effects of an increase in deferred tax
liabilities related to the divestiture of the shampoo brands, net income
(adjusted) was $37.2 million or $0.74 per diluted share in 2010, compared to
$33.3 million or $0.67 per diluted share during 2009. Net income
(adjusted) is a “non-GAAP financial measure.” A table is included with the
financial statements at the end of this news release which reconciles net income
(adjusted) to net income, the most directly comparable measure presented in
accordance with generally accepted accounting principles.
Free
Cash Flow
Free cash
flow is a “non-GAAP financial measure” and is presented here because management
believes it is a commonly used measure of liquidity, indicative of cash
available for debt repayment and acquisitions. The company defines “free cash
flow” as operating cash flow minus capital expenditures.
-2-
The
company’s free cash flow for the fourth quarter ended March 31, 2010 was $8.7
million, a decrease of 34% from free cash flow of $13.2 million in the fourth
fiscal quarter of 2009. The decrease in free cash flow is largely a result of
payment of interest incurred by early retirement of certain debt in connection
with the company’s recent refinancing and an increase in corporate tax
receivables. For fiscal year 2010, free cash flow totaled $58.7 million,
composed of operating cash flow of $59.4 million minus capital expenditures of
$0.7 million. This compared to free cash flow of $66.2 million for fiscal year
2009, composed of operating cash flow of $66.7 million less capital expenditures
of $0.5 million.
Conference
Call
The
Company will host a conference call today at 8:30 a.m. EDT. To access the call,
listeners calling from within North America may dial 866-730-5764 at least 15
minutes prior to the start of the call. To access the call from
outside North America, callers should dial 857-350-1588. The
conference passcode is “prestige”. The Company will provide a live internet
webcast as well as an archived replay, which can be accessed from the Investor
Relations page of http://prestigebrandsinc.com. Telephonic
replays will be available for two weeks following the completion of the call and
can be accessed at 888-286-8010 within North America, and at 617-801-6888 from
outside North America. The passcode is 98000111.
About
Prestige Brands Holdings, Inc.
Located
in Irvington, New York, Prestige Brands Holdings, Inc. is a marketer and
distributor of brand name over-the-counter healthcare, household and personal
care products sold throughout the U.S., Canada and certain international
markets. Key brands include Compound W® wart remover, Chloraseptic®
sore throat and allergy treatment, New-Skin® liquid bandage, Clear Eyes® and
Murine® eye and ear care products, The Doctor’s® NightGuard™ dental protector,
Little Remedies® pediatric over-the-counter products, Cutex® nail polish
remover, Comet® and Spic and Span® household products, and other well-known
brands.
Forward-Looking
Statements
Note:
This news release contains "forward-looking statements" within the meaning of
the federal securities laws and that are intended to qualify for the Safe Harbor
from liability established by the Private Securities Litigation Reform Act of
1995. "Forward-looking statements" generally can be identified by the
use of forward-looking terminology such as "assumptions," "target," "guidance,"
"outlook," "plans," "projection," "may," "will," "would," "expect," "intend,"
"estimate," "anticipate," "believe, "potential," or "continue" (or the negative
or other derivatives of each of these terms) or similar
-3-
terminology. The
"forward-looking statements" include, without limitation, statements regarding
the liquidity and borrowing capacity of Prestige Brands
Holdings. These statements are based on management's estimates and
assumptions with respect to future events and financial performance and are
believed to be reasonable, though are inherently uncertain and difficult to
predict. Actual results could differ materially from those expected
as a result of a variety of factors. A discussion of factors that
could cause results to vary is included in the Company's Annual Report on Form
10-K and other periodic and other reports filed with the Securities and Exchange
Commission.
Contact:
Dean Siegal
914-524-6819
-4-
Prestige
Brands Holdings, Inc.
Consolidated
Statements of Operations
(Unaudited)
Three
Months Ended March 31
|
||||||||
(In
thousands, except per share data)
|
2010
|
2009
|
||||||
Revenues
|
||||||||
Net
sales
|
$ | 67,791 | $ | 68,355 | ||||
Other
revenues
|
3,591 | 289 | ||||||
Total
revenues
|
71,382 | 68,644 | ||||||
Cost
of Sales
|
||||||||
Cost
of sales
|
35,917 | 34,407 | ||||||
Gross
profit
|
35,465 | 34,237 | ||||||
Operating
Expenses
|
||||||||
Advertising
and promotion
|
6,591 | 5,648 | ||||||
General
and administrative
|
8,108 | 6,241 | ||||||
Depreciation
and amortization
|
2,771 | 2,497 | ||||||
Impairment
of goodwill and intangible assets
|
2,751 | 249,285 | ||||||
Total
operating expenses
|
20,221 | 263,671 | ||||||
Operating
income (loss)
|
15,244 | (229,434 | ) | |||||
Other
(income) expense
|
||||||||
Interest
income
|
- | - | ||||||
Interest
expense
|
6,082 | 5,923 | ||||||
Loss
on extinguishment of debt
|
2,656 | - | ||||||
Miscellaneous
|
- | - | ||||||
Total
other expense
|
8,738 | 5,923 | ||||||
Income
(loss) from continuing operations before
|
||||||||
income
taxes
|
6,506 | (235,357 | ) | |||||
Provision
(benefit) for income taxes
|
3,255 | (24,117 | ) | |||||
Income
(loss) from continuing operations
|
3,251 | (211,240 | ) | |||||
Discontinued
Operations
|
||||||||
Income
from discontinued operations, net of
|
||||||||
income
tax
|
36 | 143 | ||||||
Net
income (loss)
|
3,287 | (211,097 | ) | |||||
Basic
earnings (loss) per share:
|
||||||||
Income
(loss) from continuing operations
|
$ | 0.06 | $ | (4.23 | ) | |||
Net
income (loss)
|
$ | 0.07 | $ | (4.22 | ) | |||
Diluted
earnings (loss) per share:
|
||||||||
Income
(loss) from continuing operations
|
$ | 0.06 | $ | (4.23 | ) | |||
Net
Income (loss)
|
$ | 0.07 | $ | (4.22 | ) | |||
Weighted
average shares outstanding:
|
||||||||
Basic
|
50,030 | 49,976 | ||||||
Diluted
|
50,105 | 49,976 |
-5-
Prestige
Brands Holdings, Inc.
Consolidated
Statements of Operations
(Unaudited)
Year
Ended March 31
|
||||||||||||
(In
thousands, except per share data)
|
2010
|
2009
|
2008
|
|||||||||
Revenues
|
||||||||||||
Net
sales
|
$ | 296,922 | $ | 300,937 | $ | 313,125 | ||||||
Other
revenues
|
5,101 | 2,210 | 1,982 | |||||||||
Total
revenues
|
302,023 | 303,147 | 315,107 | |||||||||
Cost
of Sales
|
||||||||||||
Cost
of sales
|
144,587 | 144,196 | 151,811 | |||||||||
Gross
profit
|
157,436 | 158,951 | 163,296 | |||||||||
Operating
Expenses
|
||||||||||||
Advertising
and promotion
|
31,236 | 37,777 | 34,243 | |||||||||
General
and administrative
|
34,195 | 31,888 | 31,414 | |||||||||
Depreciation
and amortization
|
10,552 | 9,423 | 9,219 | |||||||||
Impairment
of goodwill and intangible assets
|
2,751 | 249,285 | - | |||||||||
Total
operating expenses
|
78,734 | 328,373 | 74,876 | |||||||||
Operating
income (loss)
|
78,702 | (169,422 | ) | 88,420 | ||||||||
Other
(income) expense
|
||||||||||||
Interest
income
|
(1 | ) | (143 | ) | (675 | ) | ||||||
Interest
expense
|
22,936 | 28,579 | 38,068 | |||||||||
Loss
on extinguishment of debt
|
2,656 | - | - | |||||||||
Miscellaneous
|
- | - | (187 | ) | ||||||||
Total
other expense
|
25,591 | 28,436 | 37,206 | |||||||||
Income
(loss) from continuing operations before
|
||||||||||||
income
taxes
|
53,111 | (197,858 | ) | 51,214 | ||||||||
Provision
(benefit) for income taxes
|
21,849 | (9,905 | ) | 19,168 | ||||||||
Income
(loss) from continuing operations
|
31,262 | (187,953 | ) | 32,046 | ||||||||
Discontinued
Operations
|
||||||||||||
Income
from discontinued operations, net of
|
||||||||||||
income
tax
|
696 | 1,177 | 1,873 | |||||||||
Gain
on sale of discontinued operations, net of income tax
|
157 | - | - | |||||||||
Net
income (loss)
|
32,115 | (186,776 | ) | 33,919 | ||||||||
Basic
earnings (loss) per share:
|
||||||||||||
Income
(loss) from continuing operations
|
$ | 0.63 | $ | (3.76 | ) | $ | 0.64 | |||||
Net
income (loss)
|
$ | 0.64 | $ | (3.74 | ) | $ | 0.68 | |||||
Diluted
earnings (loss) per share:
|
||||||||||||
Income
(loss) from continuing operations
|
$ | 0.62 | $ | (3.76 | ) | $ | 0.64 | |||||
Net
Income (loss)
|
$ | 0.64 | $ | (3.74 | ) | $ | 0.68 | |||||
Weighted
average shares outstanding:
|
||||||||||||
Basic
|
50,013 | 49,935 | 49,751 | |||||||||
Diluted
|
50,085 | 49,935 | 50,039 |
-6-
Prestige
Brands Holdings. Inc.
Consolidated
Balance Sheets
(Unaudited)
(In
thousands)
|
March
31
|
|||||||
2010
|
2009
|
|||||||
Assets
|
||||||||
Current
assets
|
||||||||
Cash
and cash equivalents
|
$ | 41,097 | $ | 35,181 | ||||
Accounts
receivable
|
30,621 | 36,025 | ||||||
Inventories
|
29,162 | 25,939 | ||||||
Deferred
income tax assets
|
6,353 | 4,022 | ||||||
Prepaid
expenses and other current assets
|
4,917 | 1,358 | ||||||
Current
assets of discontinued operations
|
- | 1,038 | ||||||
Total
current assets
|
112,150 | 103,563 | ||||||
Property
and equipment
|
1,396 | 1,367 | ||||||
Goodwill
|
111,489 | 114,240 | ||||||
Intangible
assets
|
559,229 | 569,137 | ||||||
Other
long-term assets
|
7,148 | 4,602 | ||||||
Long-term
assets of discontinued operations
|
- | 8,472 | ||||||
Total
Assets
|
791,412 | 801,381 | ||||||
Liabilities
and Stockholders’ Equity
|
||||||||
Current
liabilities
|
||||||||
Accounts
payable
|
$ | 12,771 | $ | 15,898 | ||||
Accrued
interest payable
|
1,561 | 5,371 | ||||||
Other
accrued liabilities
|
11,733 | 9,407 | ||||||
Current
portion of long-term debt
|
29,587 | 3,550 | ||||||
Total
current liabilities
|
55,652 | 34,226 | ||||||
Long-term
debt
|
||||||||
Principal
amount
|
298,500 | 374,787 | ||||||
Less
unamortized discount
|
3,943 | - | ||||||
Long-term
debt less unamortized discount
|
294,557 | 374,787 | ||||||
Deferred
income tax liabilities
|
112,144 | 97,983 | ||||||
Total
Liabilities
|
462,353 | 506,996 | ||||||
Stockholders’
Equity
|
||||||||
Preferred
stock - $0.01 par value
|
||||||||
Authorized
– 5,000 shares
|
||||||||
Issued
and outstanding – None
|
||||||||
Common
stock - $0.01 par value
|
||||||||
Authorized
– 250,000 shares
|
||||||||
Issued
– 50,154 shares at March 31, 2010 and 50,060 at
March 2009
|
502 | 501 | ||||||
Additional
paid-in capital
|
384,027 | 382,803 | ||||||
Treasury
stock, at cost – 124 shares at
|
||||||||
March
31, 2010 and 2009, respectively
|
(63 | ) | (63 | ) | ||||
Accumulated
other comprehensive income (loss)
|
- | (1,334 | ) | |||||
Retained
earnings (deficit)
|
(55,407 | ) | (87,522 | ) | ||||
Total
Stockholders’ Equity
|
329,059 | 294,385 | ||||||
Total
Liabilities and Stockholders’ Equity
|
791,412 | 801,381 |
-7-
Prestige
Brands Holding, Inc.
Consolidated
Statements of Cash Flows
(Unaudited)
Year
Ended March 31
|
||||||||||||
(In
thousands)
|
2010
|
2009
|
2008
|
|||||||||
Operating
Activities
|
|
|
|
|||||||||
Net
income (loss)
|
$ | 32,115 | $ | (186,776 | ) | $ | 33,919 | |||||
Adjustments
to reconcile net income (loss) to net cash
provided
by operating activities:
|
||||||||||||
Depreciation
and amortization
|
11,450 | 11,219 | 11,014 | |||||||||
Gain
on sale of discontinued operations
|
(253 | ) | - | - | ||||||||
Deferred
income taxes
|
11,012 | (19,955 | ) | 10,096 | ||||||||
Amortization
of deferred financing costs
|
1,926 | 2,233 | 3,007 | |||||||||
Impairment
of goodwill and intangible assets
|
2,751 | 249,590 | - | |||||||||
Stock-based
compensation costs
|
2,085 | 2,439 | 1,139 | |||||||||
Loss
on extinguishment of debt
|
2,166 | - | - | |||||||||
Changes
in operating assets and liabilities
|
||||||||||||
Accounts
receivable
|
6,404 | 8,193 | (9,052 | ) | ||||||||
Inventories
|
(3,351 | ) | 2,719 | 477 | ||||||||
Prepaid
expenses and other current assets
|
(3,559 | ) | 458 | (381 | ) | |||||||
Accounts
payable
|
(3,127 | ) | (2,265 | ) | (975 | ) | ||||||
Accrued
liabilities
|
(192 | ) | (1,176 | ) | (4,255 | ) | ||||||
Net
cash provided by operating activities
|
59,427 | 66,679 | 44,989 | |||||||||
|
||||||||||||
Investing
Activities
|
||||||||||||
Purchases
of equipment
|
(673 | ) | (481 | ) | (488 | ) | ||||||
Proceeds
from sale of discontinued operations
|
7,993 | - | - | |||||||||
Purchases
of intangible assets
|
- | - | (33 | ) | ||||||||
Business
acquisition purchase price adjustments
|
- | (4,191 | ) | (16 | ) | |||||||
Net
cash provided by (used for) investing activities
|
7,320 | (4,672 | ) | (537 | ) | |||||||
|
||||||||||||
Financing
Activities
|
||||||||||||
Proceeds
from issuance of debt
|
296,046 | - | - | |||||||||
Payment
of deferred financing costs
|
(6,627 | ) | - | - | ||||||||
Repayment
of long-term debt
|
(350,250 | ) | (32,888 | ) | (52,125 | ) | ||||||
Purchase
of common stock for treasury
|
- | (16 | ) | (7 | ) | |||||||
Net
cash used for financing activities
|
(60,831 | ) | (32,904 | ) | (52,132 | ) | ||||||
|
||||||||||||
Increase
(decrease) in cash
|
5,916 | 29,103 | (7,680 | ) | ||||||||
Cash
- beginning of year
|
35,181 | 6,078 | 13,758 | |||||||||
|
||||||||||||
Cash
- end of year
|
$ | 41,097 | $ | 35,181 | $ | 6,078 |
-8-
Prestige
Brands Holdings, Inc.
Consolidated
Statements of Operations
(Unaudited)
Three
Months Ended March 31, 2010
|
Over-the-
Counter
Healthcare
|
Household
Cleaning
|
Personal
Care
|
Consolidated
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Net
sales
|
$ | 39,512 | $ | 26,526 | $ | 1,753 | $ | 67,791 | ||||||||
Other
revenues
|
3,121 | 446 | 24 | 3,591 | ||||||||||||
Total
revenues
|
42,633 | 26,972 | 1,777 | 71,382 | ||||||||||||
Cost
of sales
|
16,384 | 18,354 | 1,179 | 35,917 | ||||||||||||
Gross
profit
|
26,249 | 8,618 | 598 | 35,465 | ||||||||||||
Advertising
and promotion
|
4,956 | 1,579 | 56 | 6,591 | ||||||||||||
Contribution
margin
|
$ | 21,293 | $ | 7,039 | $ | 542 | 28,874 | |||||||||
Other
operating expenses
|
10,879 | |||||||||||||||
Impairment
of goodwill and intangible assets
|
2,751 | |||||||||||||||
Operating
income
|
15,244 | |||||||||||||||
Other
expenses
|
8,738 | |||||||||||||||
Provision
for income taxes
|
3,255 | |||||||||||||||
Income
from continuing operations
|
3,251 | |||||||||||||||
Income
from discontinued operations, net
of
income tax
|
36 | |||||||||||||||
Net
Income
|
$ | 3,287 |
-9-
Prestige
Brands Holdings, Inc.
Consolidated
Statements of Operations
(Unaudited)
Three Months Ended March 31, 2009
|
Over-the-
Counter
Healthcare
|
Household
Cleaning
|
Personal
Care
|
Consolidated
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Net
sales
|
$ | 39,788 | $ | 26,451 | $ | 2,116 | $ | 68,355 | ||||||||
Other
revenues
|
4 | 264 | 21 | 289 | ||||||||||||
Total
revenues
|
39,792 | 26,715 | 2,137 | 68,644 | ||||||||||||
Cost
of sales
|
15,792 | 17,344 | 1,271 | 34,407 | ||||||||||||
Gross
profit
|
24,000 | 9,371 | 866 | 34,237 | ||||||||||||
Advertising
and promotion
|
4,545 | 1,030 | 73 | 5,648 | ||||||||||||
Contribution
margin
|
$ | 19,455 | $ | 8,341 | $ | 793 | 28,589 | |||||||||
Other
operating expenses
|
8,738 | |||||||||||||||
Impairment
of goodwill and intangible assets
|
249,285 | |||||||||||||||
Operating
loss
|
(229,434 | ) | ||||||||||||||
Other
expenses
|
5,923 | |||||||||||||||
Income
tax benefit
|
(24,117 | ) | ||||||||||||||
Loss
from continuing operations
|
(211,240 | ) | ||||||||||||||
Income
from discontinued operations, net of income tax
|
143 | |||||||||||||||
Net
loss
|
$ | (211,097 | ) |
-10-
Prestige
Brands Holdings, Inc.
Consolidated
Statements of Operations
(Unaudited)
Year
Ended March 31, 2010
|
||||||||||||||||
Over-the-
Counter
Healthcare
|
Household
Cleaning
|
Personal
Care
|
Consolidated
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Net
sales
|
$ | 177,313 | $ | 108,797 | $ | 10,812 | $ | 296,922 | ||||||||
Other
revenues
|
3,150 | 1,899 | 52 | 5,101 | ||||||||||||
Total
revenues
|
180,463 | 110,696 | 10,864 | 302,023 | ||||||||||||
Cost
of sales
|
66,049 | 72,118 | 6,420 | 144,587 | ||||||||||||
Gross
profit
|
114,414 | 38,578 | 4,444 | 157,436 | ||||||||||||
Advertising
and promotion
|
24,220 | 6,659 | 357 | 31,236 | ||||||||||||
Contribution
margin
|
$ | 90,194 | $ | 31,919 | $ | 4,087 | 126,200 | |||||||||
Other
operating expenses
|
44,747 | |||||||||||||||
Impairment
of goodwill and intangible assets
|
2,751 | |||||||||||||||
Operating
income
|
78,702 | |||||||||||||||
Other
expenses
|
25,591 | |||||||||||||||
Provision
for income taxes
|
21,849 | |||||||||||||||
Income
from continuing operations
|
31,262 | |||||||||||||||
Income
from discontinued operations, net of income tax
|
696 | |||||||||||||||
Gain
on sale of assets, net of income tax
|
157 | |||||||||||||||
Net
Income
|
$ | 32,115 | ||||||||||||||
-11-
Prestige
Brands Holdings, Inc.
Consolidated
Statements of Operations
(Unaudited)
Year
Ended March 31, 2009
|
||||||||||||||||
Over-the-
Counter
Healthcare
|
Household
Cleaning
|
Personal
Care
|
Consolidated
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Net
sales
|
$ | 176,878 | $ | 113,923 | $ | 10,136 | $ | 300,937 | ||||||||
Other
revenues
|
97 | 2,092 | 21 | 2,210 | ||||||||||||
Total
revenues
|
176,975 | 116,015 | 10,157 | 303,147 | ||||||||||||
Cost
of sales
|
63,459 | 74,457 | 6,280 | 144,196 | ||||||||||||
Gross
profit
|
113,516 | 41,558 | 3,877 | 158,951 | ||||||||||||
Advertising
and promotion
|
29,695 | 7,625 | 457 | 37,777 | ||||||||||||
Contribution
margin
|
$ | 83,821 | $ | 33,933 | $ | 3,420 | 121,174 | |||||||||
Other
operating expenses
|
41,311 | |||||||||||||||
Impairment
of goodwill and intangible assets
|
249,285 | |||||||||||||||
Operating
loss
|
(169,422 | ) | ||||||||||||||
Other
expenses
|
28,436 | |||||||||||||||
Income
tax benefit
|
(9,905 | ) | ||||||||||||||
Loss
from continuing operations
|
(187,953 | ) | ||||||||||||||
Income
from discontinued operations, net of income tax
|
1,177 | |||||||||||||||
Net
loss
|
$ | (186,776 | ) |
-12-
Prestige
Brands Holdings, Inc.
Consolidated
Statements of Operations
(Unaudited)
Year
Ended March 31, 2008
|
||||||||||||||||
Over-the-
Counter
Healthcare
|
Household
Cleaning
|
Personal
Care
|
Consolidated
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Net
sales
|
$ | 183,641 | $ | 119,224 | $ | 10,260 | $ | 313,125 | ||||||||
Other
revenues
|
51 | 1,903 | 28 | 1,982 | ||||||||||||
Total
revenues
|
183,692 | 121,127 | 10,288 | 315,107 | ||||||||||||
Cost
of sales
|
69,344 | 75,459 | 7,008 | 151,811 | ||||||||||||
Gross
profit
|
114,348 | 45,668 | 3,280 | 163,296 | ||||||||||||
Advertising
and promotion
|
26,188 | 7,483 | 572 | 34,243 | ||||||||||||
Contribution
margin
|
$ | 88,160 | $ | 38,185 | $ | 2,708 | 129,053 | |||||||||
Other
operating expenses
|
40,633 | |||||||||||||||
Impairment
of goodwill and intangible assets
|
- | |||||||||||||||
Operating
income
|
88,420 | |||||||||||||||
Other
expenses
|
37,206 | |||||||||||||||
Provision
for income taxes
|
19,168 | |||||||||||||||
Income
from continuing operations
|
32,046 | |||||||||||||||
Income
from discontinued operations, net of income tax
|
1,873 | |||||||||||||||
Net
Income
|
$ | 33,919 |
-13-
Prestige
Brands Holdings, Inc.
Reconciliation
of Net Income to Adjusted Net Income
(Unaudited)
Three
Months Ended March 31
|
Year
Ended March 31
|
|||||||||||||||
(In
thousands)
|
2010
|
2009
|
2010
|
2009
|
||||||||||||
Net
income (loss)
|
$ | 3,287 | $ | (211,097 | ) | $ | 32,115 | $ | (186,776 | ) | ||||||
Adjustments:
|
||||||||||||||||
Loss
on extinguishment of debt
|
2,656 | - | 2,656 | - | ||||||||||||
Impairment
of goodwill and intangibles
|
2,751 | 249,590 | 2,751 | 249,590 | ||||||||||||
Increase
in deferred tax liability related to
|
||||||||||||||||
the
divestiture of the shampoo brands
|
- | - | 931 | - | ||||||||||||
Income
tax benefit
|
(1,261 | ) | (29,511 | ) | (1,261 | ) | (29,511 | ) | ||||||||
4,146 | 220,079 | 5,077 | 220,079 | |||||||||||||
Adjusted
net income
|
$ | 7,433 | $ | 8,982 | $ | 37,192 | $ | 33,303 | ||||||||
Basic
earnings per share on adjusted
|
||||||||||||||||
net
income
|
$ | 0.15 | $ | 0.18 | $ | 0.74 | $ | 0.67 | ||||||||
Diluted
earnings per share on adjusted
|
||||||||||||||||
net
income
|
$ | 0.15 | $ | 0.18 | $ | 0.74 | $ | 0.67 | ||||||||
Weighted
average shares outstanding:
|
||||||||||||||||
Basic
|
50,030 | 49,976 | 50,013 | 49,935 | ||||||||||||
Diluted
|
50,105 | 49,976 | 50,085 | 49,935 |
-14-