StockSelector.com
  Research, Select, & Monitor Monday, March 25, 2019 8:14:33 AM ET  
Trade Ideas The Market Industries Stocks Portfolio

 
Ticker Lookup
Prestige Brands Holdings Inc.$28.75($.25)(.86%)

  Quote | Ranking | Chart | Valuations | Sentiment | Industry | News | Earnings | Analysts | More...

Your Target?

 Prestige Brands Holdings, Inc. Reports Fiscal 2016 Fourth Quarter and Full Year Results; Company Exceeds Fourth Quarter and Full Year Outlook
   Thursday, May 12, 2016 6:00:00 AM ET

--Adjusted Free Cash Flow Increased 12.0% to $183.4 Million in FY2016

Prestige Brands Holdings, Inc. (PBH ) today reported financial results for its fourth quarter and fiscal year ended March 31, 2016.

Key fourth quarter and fiscal year highlights include:

-- Reported revenue increased 9.4% to $207.9 million and 12.8% to $806.2 million in Q4 and FY2016, respectively.

-- Organic sales grew 5.0% in Q4 and 2.8% in FY2016, on a constant currency basis.

-- Adjusted net income increased 12.7% to $27.9 million, or $0.52 per diluted share, in Q4.

-- FY16 adjusted net income increased 17.8% to $115.5 million, or $2.17 per diluted share.



-- Adjusted free cash flow increased 12.0% to $183.4 million in FY2016.

Fiscal Fourth Quarter Ended March 31, 2016

Reported revenues in the fiscal fourth quarter of 2016 increased 9.4% to $207.9 million, compared to $190.0 million in the fiscal fourth quarter of 2015. Organic sales growth for the fourth quarter was 3.7%, or 5.0% on a constant currency basis. Revenues for the quarter were driven by continued strong consumption levels across the Company’s core over-the-counter healthcare (OTC) and international brands, and incremental revenue from the DenTek(R) acquisition.

Reported net income totaled $13.9 million, or $0.26 per diluted share, compared to $23.8 million, or $0.45 per diluted share, in the fourth quarter of fiscal year 2015. Adjusted net income increased 12.7% to $27.9 million, or $0.52 per diluted share, compared to $24.8 million, or $0.47 per diluted share, in the fourth quarter of fiscal year 2015. Adjustments to net income in the fourth quarter of fiscal 2016 consisted of items related to the acquisition of DenTek and the refinancing of the 2012 Senior Notes. Adjustments to net income in the prior year comparable quarter were related to the Insight and Hydralyte acquisitions.

Fiscal Year Ended March 31, 2016

Reported revenues for the fiscal year ended March 31, 2016 totaled $806.2 million, an increase of 12.8%, compared to revenues of $714.6 million for the fiscal year ended March 31, 2015. Organic revenues for the fiscal year ended March 31, 2016 increased 2.8% on a constant currency basis. Foreign currency fluctuations negatively impacted reported revenues for the fiscal year by $13.9 million.

Reported net income for fiscal year 2016 totaled $99.9 million, or $1.88 per diluted share, compared to $78.3 million, or $1.49 per diluted share, for fiscal year 2015. Adjusted net income for fiscal year 2016 totaled $115.5 million, or $2.17 per diluted share, an increase of 17.8% compared to adjusted net income of $98.0 million, or $1.86 per diluted share, for fiscal 2015. Adjustments to net income in fiscal 2016 consisted of items related to the acquisition of DenTek, CEO transition costs and the refinancing of the 2012 Senior Notes. Adjustments to net income in the prior year were related to the acquisitions of Insight and Hydralyte.

Adjusted Free Cash Flow and Balance Sheet

Adjusted free cash flow totaled $48.7 million for the fourth quarter of fiscal 2016, compared to fourth quarter fiscal 2015 results of $50.1 million. For fiscal year 2016, adjusted free cash flow increased 12.0% to $183.4 million compared to adjusted free cash flow of $163.7 million for fiscal year 2015. The Company’s consistent and industry-leading free cash flow resulted in a bank-defined net debt to EBITDA ratio of ~5.0 at the end of fiscal year 2016.

Segment Review

North American OTC Healthcare: Reported revenues totaled $171.1 million for the fourth quarter of 2016, a 9.2% increase over fourth quarter 2015 revenues of $156.6 million. For fiscal year 2016, reported revenues totaled $657.9 million, compared to $566.9 million for fiscal year 2015, an increase of 16.0%. Results for both periods were favorably impacted by increased consumption among core OTC brands as well as revenues from DenTek for two months.

International OTC Healthcare: Reported revenues totaled $14.4 million for the fourth quarter of fiscal 2016, a 14.7% increase over fourth quarter fiscal year 2015 revenues of $12.6 million. Revenues increased 24.7%, excluding $1.0 million of foreign currency impact. For fiscal year 2016, reported revenues totaled $57.7 million compared to $57.8 million for fiscal year 2015. Revenues increased 16.2%, excluding $8.1 million of foreign currency impact. The strong performance of the Care Pharma portfolio in Australia favorably impacted reported revenues for fiscal year 2016. The results also include revenues from two months of ownership of DenTek in the United Kingdom and Germany.

Household Cleaning: Reported revenues totaled $22.4 million for the fourth quarter of fiscal 2016, compared with fourth quarter fiscal 2015 revenues of $20.8 million, an increase of 7.5%. Reported revenues for fiscal year 2016 totaled $90.7 million, a 0.8% increase over fiscal year 2015 revenues of $89.9 million.

Commentary and Outlook for FY2017

"Our strong overall performance in the fourth quarter enabled us to exceed our previous outlook for the quarter and full fiscal year," said Ron Lombardi, President and CEO. "The solid results, which include an organic growth rate of 2.8% for the full fiscal year on a constant currency basis, reflect continued successful execution of our brand-building strategy and positive consumption trends across our core OTC and international brands. Based on our strong finish to fiscal 2016, we believe we are well-positioned for another strong year in fiscal 2017."

"We completed the acquisition of DenTek in February 2016, our seventh acquisition in the past six years," Mr. Lombardi said. "The DenTek integration is proceeding on schedule, and we are excited by the growth opportunities of this leading oral care brand."

Mr. Lombardi continued, "In fiscal 2017, we expect continued organic growth in our existing business and incremental revenues from the acquisition of DenTek. We anticipate full fiscal year 2017 revenue growth in the range of 6.0%-8.0% including the impact of foreign exchange, adjusted earnings per share in the range of $2.30-$2.36 following top line growth, and adjusted non-GAAP projected free cash flow of $185 million or more. As has been our practice, we expect to continue to use our industry-leading free cash flow to pay down debt and build M&A capacity."

Q4 and Fiscal Year Conference Call, Accompanying Slide Presentation and Replay

The Company will host a conference call to review its fourth quarter and full year results on May 12, 2016 at 8:30 am EDT. The toll-free dial-in numbers are 877-784-9650 within North America and 530-379-4717 outside of North America. The conference ID number is 88898382. The Company will provide a live Internet webcast, a slide presentation to accompany the call, as well as an archived replay, all of which can be accessed from the Investor Relations page of the Company’s website at http://prestigebrands.com . The slide presentation can be accessed just before the call from the Investor Relations page of the website by clicking on Webcasts and Presentations. Telephonic replays will be available for two weeks following the completion of the call and can be accessed at 855-859-2056 within North America and at 404-537-3406 from outside North America. The conference ID is 88898382.

Investor Day Scheduled for May 25, 2016

In addition, the Company will host an investor day on Wednesday, May 25th beginning at 9 am EDT in New York City. The CEO, Ron Lombardi, and other members of senior management will present an update on the Company’s strategy for long-term growth. The Company will provide a live internet webcast, which can be accessed from the Investor Relations page of http://prestigebrands.com . Choose the "Click Here for Webcast" hyperlink and register for access. A replay of the full event will be available through the same URL four to eight hours after the event. Visit the News and Events section of the Company’s website at http://prestigebrands.com for details.

Non-GAAP Financial Information

In addition to financial results reported in accordance with generally accepted accounting principles (GAAP), we have provided certain non-GAAP financial information in this release to aid investors in understanding the Company’s performance. Each non-GAAP financial measure is defined and reconciled to its most closely related GAAP financial measure in the "About Non-GAAP Financial Measures" section at the end of this earnings release.

About Prestige Brands Holdings, Inc.

The Company markets and distributes brand name over-the-counter and household cleaning products throughout the U.S. and Canada, Australia, and in certain other international markets. The Company’s brands include Monistat(R) women’s health products, BC(R) and Goody’s(R) pain relievers, Clear Eyes(R) eye care products, DenTek(R) specialty oral care products, Dramamine(R) motion sickness treatments, Chloraseptic(R) sore throat treatments, Compound W(R) wart treatments, Little Remedies(R) pediatric over-the-counter products, The Doctor’s(R) NightGuard(R) dental protector, Efferdent(R) denture care products, Luden’s(R) throat drops, Beano(R) gas prevention, Debrox(R) earwax remover, Gaviscon(R) antacid in Canada, and Hydralyte(R) rehydration products and the Fess(R) line of nasal and sinus care products in Australia. Visit the Company’s website at www.prestigebrands.com.

Note Regarding Forward-Looking Statements

This news release contains "forward-looking statements" within the meaning of the federal securities laws 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 "outlook," "may," "will," "would," "expect," "intend," "estimate," "anticipate," "believe," or "continue" (or the negative or other derivatives of each of these terms) or similar terminology. The "forward-looking statements" include, without limitation, statements regarding our expected future operating results, including revenue growth, the impact of foreign exchange rates, adjusted EPS, and adjusted non-GAAP projected free cash flow; our expected use of free cash flow for deleveraging and building M&A capacity; the integration of the DenTek acquisition and incremental revenues from it; and our anticipated organic growth in the legacy business. 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, including the impact of our advertising and promotional initiatives, general economic and business conditions, regulatory matters, competition in our industry, supplier issues, the success of our brand-building investments and integration of newly acquired brands. A discussion of other factors that could cause results to vary is included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2015, Quarterly Report on Form 10-Q for the quarter ended December 31, 2015, and other periodic reports filed with the Securities and Exchange Commission.

                                                                                                                                                                                                   
                                                                                                                                                                                           Prestige Brands Holdings, Inc.
                                                                                                                                                                             Consolidated Statements of Income and Comprehensive Income
                                                                                                                                                                                                     (Unaudited)
                                                                                                                                                                                                                                                                                 
                                                                                                                                                           Three Months Ended                                                                                                                                                                Year Ended
                                                                                                                                                                March 31,                                                                                                                                                                     March 31,
                                                                                                   --------------------------------------------------------------------------------------------------------------------------                                                   ---------------------------------------------------------------------------------------------------------------------------
(In thousands, except per share data)                                                                                       2016                                                     2015                                                                                             2016                                                      2015
                                                                                                   -------------------------------------------------------                     -------------------------------------------------------                                          -------------------------------------------------------                     --------------------------------------------------------
Revenues
   Net sales                                                                                          $   207,054                                              $   189,089                                                                   $   803,088                                               $   710,070
   Other revenues                                                                                                                801                                                      957                                                                         3,159                                                     4,553  
                                                                                                   ------------------------------------------------------                      ------------------------------------------------------                                           ------------------------------------------------------                      -------------------------------------------------------
                                                                                                                             207,855                                                                     190,046                                                                                          806,247                                                                      714,623
      Total revenues
                                                                                                                                                                                                                                                                                                                                                             
Cost of Sales
   Cost of sales (exclusive of depreciation shown below)                                                                      89,604                                                   79,976                                                                       339,036                                                   308,400  
                                                                                                   ------------------------------------------------------                      ------------------------------------------------------                                           ------------------------------------------------------                      -------------------------------------------------------
      Gross profit                                                                                                           118,251                                                  110,070                                                                       467,211                                                   406,223  
                                                                                                   ------------------------------------------------------                      ------------------------------------------------------                                           ------------------------------------------------------                      -------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                             
Operating Expenses
   Advertising and promotion                                                                                                  26,552                                                                      25,367                                                                                          110,802                                                                       99,651
   General and administrative                                                                                                 20,232                                                                      17,685                                                                                           72,418                                                                       81,273
   Depreciation and amortization                                                                                               6,198                                                    5,773                                                                        23,676                                                    17,740  
                                                                                                   ------------------------------------------------------                      ------------------------------------------------------                                           ------------------------------------------------------                      -------------------------------------------------------
      Total operating expenses                                                                                                52,982                                                   48,825                                                                       206,896                                                   198,664  
                                                                                                   ------------------------------------------------------                      ------------------------------------------------------                                           ------------------------------------------------------                      -------------------------------------------------------
      Operating income                                                                                                        65,269                                                   61,245                                                                       260,315                                                   207,559  
                                                                                                   ------------------------------------------------------                      ------------------------------------------------------                                           ------------------------------------------------------                      -------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                             
Other (income) expense
   Interest income                                                                                                               (71 )                                                                       (25 )                                                                                           (162 )                                                                        (92 )
   Interest expense                                                                                                           23,218                                                                      23,821                                                                                           85,322                                                                       81,326
   Gain on sale of asset                                                                                              --                                                              --                                                                                   --                                                                       (1,133 )
   Loss on extinguishment of debt                                                                                             17,519                                           --                                                                        17,970                                            --  
                                                                                                   ------------------------------------------------------                      ------------------------------------------------------                                           ------------------------------------------------------                      -------------------------------------------------------
      Total other expense                                                                                                     40,666                                                   23,796                                                                       103,130                                                    80,101  
                                                                                                   ------------------------------------------------------                      ------------------------------------------------------                                           ------------------------------------------------------                      -------------------------------------------------------
      Income before income taxes                                                                                              24,603                                                                      37,449                                                                                          157,185                                                                      127,458
   Provision for income taxes                                                                                                 10,667                                                   13,677                                                                        57,278                                                    49,198  
                                                                                                   ------------------------------------------------------                      ------------------------------------------------------                                           ------------------------------------------------------                      -------------------------------------------------------
      Net income                                                                                      $    13,936                           $    23,772                                                $    99,907                            $    78,260  
                                                                                                   ==== ==================== ======= ====================                      ==== ==================== ======= ====================                                           ==== ==================== ======= ====================                      ===== ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                             
Earnings per share:
   Basic                                                                                              $      0.26                           $      0.45                                                $      1.89                            $      1.50  
                                                                                                   ==== ==================== ======= ====================                      ==== ==================== ======= ====================                                           ==== ==================== ======= ====================                      ===== ==================== ======= ====================
   Diluted                                                                                            $      0.26                           $      0.45                                                $      1.88                            $      1.49  
                                                                                                   ==== ==================== ======= ====================                      ==== ==================== ======= ====================                                           ==== ==================== ======= ====================                      ===== ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                             
Weighted average shares outstanding:
   Basic                                                                                                                      52,833                                                   52,356                                                                        52,754                                                    52,170  
                                                                                                   ======================================================                      ======================================================                                           ======================================================                      =======================================================
   Diluted                                                                                                                    53,252                                                   52,821                                                                        53,143                                                    52,670  
                                                                                                   ======================================================                      ======================================================                                           ======================================================                      =======================================================
                                                                                                                                                                                                                                                                                                                                                             
Comprehensive income, net of tax:
   Currency translation adjustments                                                                                            6,449                                                   (7,268 )                                                                                           (113 )                                                                    (24,151 )
                                                                                                   ------------------------------------------------------                      ------------------------------------------------------                                           ------------------------------------------------------                      -------------------------------------------------------
Total other comprehensive income (loss)                                                                                        6,449                                                   (7,268 )                                                                                           (113 )                                                                    (24,151 )
                                                                                                   ------------------------------------------------------                      ------------------------------------------------------                                           ------------------------------------------------------                      -------------------------------------------------------
Comprehensive income                                                                                  $    20,385                           $    16,504                                                $    99,794                            $    54,109  
                                                                                                   ==== ==================== ======= ====================                      ==== ==================== ======= ====================                                           ==== ==================== ======= ====================                      ===== ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                    
                                                                                                                  Prestige Brands Holdings, Inc.
                                                                                                                    Consolidated Balance Sheets
                                                                                                                            (Unaudited)
                                                                                                                            
(In thousands)                                                                                                                                                                             March 31,
--------------------------------------------------------------------------------                                           -------------------------------------------------------------------------------------------------------------------------------
Assets                                                                                                                                               2016                                                        2015
                                                                                                                           ---------------------------------------------------------                     ----------------------------------------------------------
Current assets
   Cash and cash equivalents                                                                                                  $      27,230                                               $      21,318
   Accounts receivable, net                                                                                                                             95,247                                                                         87,858
   Inventories                                                                                                                                          91,263                                                                         74,000
   Deferred income tax assets                                                                                                                           10,108                                                                          8,097
   Prepaid expenses and other current assets                                                                                                            25,165                                                      10,434  
                                                                                                                           --------------------------------------------------------                      ---------------------------------------------------------
Total current assets                                                                                                                                   249,013                                                                        201,707
                                                                                                                                                                                                          
Property and equipment, net                                                                                                                             15,540                                                                         13,744
Goodwill                                                                                                                                               360,191                                                                        290,651
Intangible assets, net                                                                                                                               2,322,723                                                                      2,134,700
Other long-term assets                                                                                                                                   1,324                                                       1,165  
                                                                                                                           --------------------------------------------------------                      ---------------------------------------------------------
Total Assets                                                                                                                  $   2,948,791                            $   2,641,967  
                                                                                                                           ==== ==================== ========= ====================                      ===== ==================== ========= ====================
                                                                                                                                                                                                          
Liabilities and Stockholders’ Equity
Current liabilities
   Accounts payable                                                                                                           $                         38,296                                               $                         46,115
   Accrued interest payable                                                                                                                              8,664                                                                         11,974
   Other accrued liabilities                                                                                                                            59,724                                                      40,948  
                                                                                                                           --------------------------------------------------------                      ---------------------------------------------------------
Total current liabilities                                                                                                                              106,684                                                      99,037  
                                                                                                                           --------------------------------------------------------                      ---------------------------------------------------------
                                                                                                                                                                                                          
Long-term debt
   Principal amount                                                                                                                                  1,652,500                                                                      1,593,600
   Less unamortized debt costs                                                                                                                         (27,191 )                                                                      (32,327 )
                                                                                                                           --------------------------------------------------------                      ---------------------------------------------------------
   Long-term debt, net                                                                                                                               1,625,309                                                   1,561,273  
                                                                                                                           --------------------------------------------------------                      ---------------------------------------------------------
                                                                                                                                                                                                          
Deferred income tax liabilities                                                                                                                        469,622                                                                        351,569
Other long-term liabilities                                                                                                                              2,840                                                       2,464  
                                                                                                                           --------------------------------------------------------                      ---------------------------------------------------------
Total Liabilities                                                                                                                                    2,204,455                                                   2,014,343  
                                                                                                                           --------------------------------------------------------                      ---------------------------------------------------------
                                                                                                                                                                                                          
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 - 53,066 shares at March 31, 2016 and 52,562 shares at March                                                                           530                                                                            525
31, 2015
Additional paid-in capital                                                                                                                             445,182                                                                        426,584
Treasury stock, at cost - 306 shares at March 31, 2016 and 266 at                                                                          (5,163 )                                                                       (3,478 )
March 31, 2015
Accumulated other comprehensive income (loss), net of tax                                                                                              (23,525 )                                                                      (23,412 )
Retained earnings                                                                                                                                      327,312                                                     227,405  
                                                                                                                           --------------------------------------------------------                      ---------------------------------------------------------
Total Stockholders’ Equity                                                                                                                             744,336                                                     627,624  
                                                                                                                           --------------------------------------------------------                      ---------------------------------------------------------
                                                                                                                                                                                                          
Total Liabilities and Stockholders’ Equity                                                                                    $   2,948,791                            $   2,641,967  
                                                                                                                           ==== ==================== ========= ====================                      ===== ==================== ========= ====================
                                                                                                                                                                                                                                               
                                                                     
                                                                                                        Prestige Brands Holdings, Inc.
                                                                                                     Consolidated Statements of Cash Flows
                                                                                                                  (Unaudited)
                                                                                                             
                                                                                                                                                                   Year Ended March 31,
                                                                                                            ----------------------------------------------------------------------------------------------------------------------------------
(In thousands)                                                                                                                       2016                                                    2015
-----------------------------------------------------------------                                           --------------------------------------------------                         ---------------------------------------------------
Operating Activities
Net income                                                                                                     $   99,907                                               $   78,260
Adjustments to reconcile net income to net cash provided by (used
in) operating activities:
      Depreciation and amortization                                                                                                   23,676                                                                      17,740
      Gain on sale of asset                                                                                                   --                                                                      (1,133 )
      Deferred income taxes                                                                                                           46,152                                                                      28,922
      Long term income taxes payable                                                                                                    (332 )                                                                     2,294
      Amortization of debt origination costs                                                                                           8,994                                                                       8,821
      Stock-based compensation costs                                                                                                   9,954                                                                       6,918
      Loss on extinguishment of debt                                                                                                  17,970                                                              --
      Premium payment on 2012 Senior Notes                                                                                           (10,158 )                                                            --
      Lease termination costs                                                                                                 --                                                                         785
      (Gain) loss on sale or disposal of property and equipment                                                                          (35 )                                                                       321
Changes in operating assets and liabilities, net of effects from
acquisitions
         Accounts receivable                                                                                                           1,824                                                                       1,608
         Inventories                                                                                                                  (3,005 )                                                                    15,360
         Prepaid expenses and other current assets                                                                                    (7,921 )                                                                     4,664
         Accounts payable                                                                                                            (11,348 )                                                                   (17,637 )
         Accrued liabilities                                                                                                          (1,328 )                                                                     9,332  
                                                                                                            -----------------------------------------------------                      ------------------------------------------------------
   Net cash provided by operating activities                                                                                         174,350                                                  156,255  
                                                                                                            -----------------------------------------------------                      ------------------------------------------------------
                                                                                                                                                                                        
Investing Activities
Purchases of property and equipment                                                                                                   (3,568 )                                                                    (6,101 )
Proceeds from the sale of property and equipment                                                                                         344                                                              --
Proceeds from sale of business                                                                                                --                                                                      18,500
Proceeds from sale of asset                                                                                                   --                                                                      10,000
Proceeds from Insight Pharmaceuticals working capital arbitration                                                                      7,237                                                              --
settlement
Acquisition of DenTek, less cash acquired                                                                                           (226,984 )                                                            --
Acquisition of Insight Pharmaceuticals, less cash acquired                                                                    --                                                                    (749,666 )
Acquisition of the Hydralyte brand                                                                                            --                                                  (77,991 )
                                                                                                            -----------------------------------------------------                      ------------------------------------------------------
   Net cash used in investing activities                                                                                            (222,971 )                                                                  (805,258 )
                                                                                                            -----------------------------------------------------                      ------------------------------------------------------
                                                                                                                                                                                        
Financing Activities
Proceeds from issuance of 2016 Senior Notes                                                                                          350,000                                                              --
Repayment of 2012 Senior Notes                                                                                                      (250,000 )                                                            --
Borrowings under Bridge term loans                                                                                                    80,000                                                              --
Repayments under Bridge term loans                                                                                                   (80,000 )                                                            --
Term loan borrowings                                                                                                          --                                                                     720,000
Term loan repayments                                                                                                                 (60,000 )                                                                  (130,000 )
Borrowings under revolving credit agreement                                                                                          115,000                                                                     124,600
Repayments under revolving credit agreement                                                                                          (96,100 )                                                                   (58,500 )
Payments of debt origination costs                                                                                                   (11,828 )                                                                   (16,072 )
Proceeds from exercise of stock options                                                                                                6,689                                                                       3,954
Proceeds from restricted stock exercises                                                                                                 544                                                                          57
Excess tax benefits from share-based awards                                                                                            1,960                                                                       1,330
Fair value of shares surrendered as payment of tax withholding                                                                        (2,229 )                                                                    (2,104 )
                                                                                                            -----------------------------------------------------                      ------------------------------------------------------
   Net cash provided by financing activities                                                                                          54,036                                                  643,265  
                                                                                                            -----------------------------------------------------                      ------------------------------------------------------
                                                                                                                                                                                        
Effects of exchange rate changes on cash and cash equivalents                                                                            497                                                                      (1,275 )
Increase (decrease) in cash and cash equivalents                                                                                       5,912                                                                      (7,013 )
Cash and cash equivalents - beginning of year                                                                                         21,318                                                   28,331  
                                                                                                            -----------------------------------------------------                      ------------------------------------------------------
Cash and cash equivalents - end of year                                                                        $   27,230                            $   21,318  
                                                                                                            ==== ==================== ====== ====================                      ===== ==================== ====== ====================
                                                                                                                                                                                        
Interest paid                                                                                                  $   79,132                            $   70,155  
                                                                                                            ==== ==================== ====== ====================                      ===== ==================== ====== ====================
Income taxes paid                                                                                              $   15,352                            $   11,939  
                                                                                                            ==== ==================== ====== ====================                      ===== ==================== ====== ====================
                                                                                                                                                                                                                          
                                        
                                                                                                                                                                    Prestige Brands Holdings, Inc.
                                                                                                                                                                   Consolidated Statements of Income
                                                                                                                                                                           Business Segments
                                                                                                                                                                              (Unaudited)
 
                                                                                                                                                                                                           Three Months Ended March 31, 2016
                                                                               ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(In thousands)                                                                                          North                                                International                                             Household                                             Consolidated
                                                                                                      American                                                                       OTC                                                                     Cleaning
                                                                                                         OTC                                                                     Healthcare
                                                                                                     Healthcare
------------------------------------                                           ---------------------------------------------------                         --------------------------------------------------                         --------------------------------------------------                         --------------------------------------------------
Gross segment revenues                                                            $   171,294                                              $   14,416                                              $   21,577                                             $   207,287
Elimination of intersegment revenues                                                                        (233 )                                                           --                                          --                                                    (233 )
                                                                               ------------------------------------------------------                      -----------------------------------------------------                      -----------------------------------------------------                      -----------------------------------------------------
Third-party segment revenues                                                                             171,061                                                                     14,416                                                                     21,577                                                                    207,054
Other revenues                                                                                    --                                                       2                                                     799                                                     801  
                                                                               ------------------------------------------------------                      -----------------------------------------------------                      -----------------------------------------------------                      -----------------------------------------------------
Total segment revenues                                                                                   171,061                                                                     14,418                                                                     22,376                                                                    207,855
Cost of sales                                                                                             69,873                                                   3,195                                                  16,536                                                  89,604  
                                                                               ------------------------------------------------------                      -----------------------------------------------------                      -----------------------------------------------------                      -----------------------------------------------------
Gross profit                                                                                             101,188                                                                     11,223                                                                      5,840                                                                    118,251
Advertising and promotion                                                                                 23,286                                                   2,776                                                     490                                                  26,552  
                                                                               ------------------------------------------------------                      -----------------------------------------------------                      -----------------------------------------------------                      -----------------------------------------------------
Contribution margin                                                               $    77,902                           $    8,447                           $    5,350                          $    91,699  
                                                                               ==== ==================== ======= ====================                      ==== ==================== ====== ====================                      ==== ==================== ====== ====================                      === ==================== ======= ====================
Other operating expenses                                                                                                                                                                                                                                                                                                                   26,430  
                                                                                                                                                                                                                                                                                                                 -----------------------------------------------------
Operating income                                                                                                                                                                                                                                                                                                                           65,269
Other expense                                                                                                                                                                                                                                                                                                                              40,666  
                                                                                                                                                                                                                                                                                                                 -----------------------------------------------------
Income before income taxes                                                                                                                                                                                                                                                                                                                 24,603
Provision for income taxes                                                                                                                                                                                                                                                                                                                 10,667  
                                                                                                                                                                                                                                                                                                                 -----------------------------------------------------
Net income                                                                                                                                                                                                                                                                                                         $    13,936  
                                                                                                                                                                                                                                                                                                                 === ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                   
                                        
                                                                                                                                                                                                              Year Ended March 31, 2016
                                                                               ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(In thousands)                                                                                         North                                               International                                             Household                                             Consolidated
                                                                                                     American                                                                      OTC                                                                     Cleaning
                                                                                                        OTC                                                                    Healthcare
                                                                                                    Healthcare
------------------------------------                                           -------------------------------------------------                         --------------------------------------------------                         --------------------------------------------------                         --------------------------------------------------
Gross segment revenues*                                                         $   660,518                                              $   57,670                                              $   87,561                                             $   805,749
Elimination of intersegment revenues                                                                    (2,661 )                                                           --                                          --                                                  (2,661 )
                                                                               ----------------------------------------------------                      -----------------------------------------------------                      -----------------------------------------------------                      -----------------------------------------------------
Third-party segment revenues                                                                           657,857                                                                     57,670                                                                     87,561                                                                    803,088
Other revenues*                                                                                             14                                                      43                                                   3,102                                                   3,159  
                                                                               ----------------------------------------------------                      -----------------------------------------------------                      -----------------------------------------------------                      -----------------------------------------------------
Total segment revenues                                                                                 657,871                                                                     57,713                                                                     90,663                                                                    806,247
Cost of sales                                                                                          252,152                                                  19,542                                                  67,342                                                 339,036  
                                                                               ----------------------------------------------------                      -----------------------------------------------------                      -----------------------------------------------------                      -----------------------------------------------------
Gross profit                                                                                           405,719                                                                     38,171                                                                     23,321                                                                    467,211
Advertising and promotion                                                                               97,393                                                  11,114                                                   2,295                                                 110,802  
                                                                               ----------------------------------------------------                      -----------------------------------------------------                      -----------------------------------------------------                      -----------------------------------------------------
Contribution margin                                                             $   308,326                           $   27,057                           $   21,026                          $   356,409  
                                                                               == ==================== ======= ====================                      ==== ==================== ====== ====================                      ==== ==================== ====== ====================                      === ==================== ======= ====================
Other operating expenses                                                                                                                                                                                                                                                                                                                 96,094  
                                                                                                                                                                                                                                                                                                               -----------------------------------------------------
Operating income                                                                                                                                                                                                                                                                                                                        260,315
Other expense                                                                                                                                                                                                                                                                                                                           103,130  
                                                                                                                                                                                                                                                                                                               -----------------------------------------------------
Income before income taxes                                                                                                                                                                                                                                                                                                              157,185
Provision for income taxes                                                                                                                                                                                                                                                                                                               57,278  
                                                                                                                                                                                                                                                                                                               -----------------------------------------------------
Net income                                                                                                                                                                                                                                                                                                       $    99,907  
                                                                                                                                                                                                                                                                                                               === ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                 
                                        
                                                                                                                                                                                                          Three Months Ended March 31, 2015
                                                                               ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(In thousands)                                                                                         North                                               International                                             Household                                             Consolidated
                                                                                                     American                                                                      OTC                                                                     Cleaning
                                                                                                        OTC                                                                    Healthcare
                                                                                                    Healthcare
------------------------------------                                           -------------------------------------------------                         --------------------------------------------------                         --------------------------------------------------                         --------------------------------------------------
Gross segment revenues*                                                         $   156,940                                              $   12,572                                              $   20,028                                             $   189,540
Elimination of intersegment revenues                                                                      (451 )                                                           --                                          --                                                    (451 )
                                                                               ----------------------------------------------------                      -----------------------------------------------------                      -----------------------------------------------------                      -----------------------------------------------------
Third-party segment revenues                                                                           156,489                                                                     12,572                                                                     20,028                                                                    189,089
Other revenues                                                                                             159                                                       2                                                     796                                                     957  
                                                                               ----------------------------------------------------                      -----------------------------------------------------                      -----------------------------------------------------                      -----------------------------------------------------
Total segment revenues                                                                                 156,648                                                                     12,574                                                                     20,824                                                                    190,046
Cost of sales                                                                                           58,776                                                   4,894                                                  16,306                                                  79,976  
                                                                               ----------------------------------------------------                      -----------------------------------------------------                      -----------------------------------------------------                      -----------------------------------------------------
Gross profit                                                                                            97,872                                                                      7,680                                                                      4,518                                                                    110,070
Advertising and promotion                                                                               22,324                                                   2,771                                                     272                                                  25,367  
                                                                               ----------------------------------------------------                      -----------------------------------------------------                      -----------------------------------------------------                      -----------------------------------------------------
Contribution margin                                                             $    75,548                           $    4,909                           $    4,246                          $    84,703  
                                                                               == ==================== ======= ====================                      ==== ==================== ====== ====================                      ==== ==================== ====== ====================                      === ==================== ======= ====================
Other operating expenses                                                                                                                                                                                                                                                                                                                 23,458  
                                                                                                                                                                                                                                                                                                               -----------------------------------------------------
Operating income                                                                                                                                                                                                                                                                                                                         61,245
Other expense                                                                                                                                                                                                                                                                                                                            23,796  
                                                                                                                                                                                                                                                                                                               -----------------------------------------------------
Income before income taxes                                                                                                                                                                                                                                                                                                               37,449
Provision for income taxes                                                                                                                                                                                                                                                                                                               13,677  
                                                                                                                                                                                                                                                                                                               -----------------------------------------------------
Net income                                                                                                                                                                                                                                                                                                       $    23,772  
                                                                                                                                                                                                                                                                                                               === ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                 
                                        
                                                                                                                                                                                                              Year Ended March 31, 2015
                                                                               ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(In thousands)                                                                                         North                                               International                                             Household                                             Consolidated
                                                                                                     American                                                                      OTC                                                                     Cleaning
                                                                                                        OTC                                                                    Healthcare
                                                                                                    Healthcare
------------------------------------                                           -------------------------------------------------                         --------------------------------------------------                         --------------------------------------------------                         --------------------------------------------------
Gross segment revenues*                                                         $   569,643                                              $   57,729                                              $   86,085                                             $   713,457
Elimination of intersegment revenues                                                                    (3,387 )                                                           --                                          --                                                  (3,387 )
                                                                               ----------------------------------------------------                      -----------------------------------------------------                      -----------------------------------------------------                      -----------------------------------------------------
Third-party segment revenues                                                                           566,256                                                                     57,729                                                                     86,085                                                                    710,070
Other revenues                                                                                             637                                                      64                                                   3,852                                                   4,553  
                                                                               ----------------------------------------------------                      -----------------------------------------------------                      -----------------------------------------------------                      -----------------------------------------------------
Total segment revenues                                                                                 566,893                                                                     57,793                                                                     89,937                                                                    714,623
Cost of sales                                                                                          216,781                                                  22,820                                                  68,799                                                 308,400  
                                                                               ----------------------------------------------------                      -----------------------------------------------------                      -----------------------------------------------------                      -----------------------------------------------------
Gross profit                                                                                           350,112                                                                     34,973                                                                     21,138                                                                    406,223
Advertising and promotion                                                                               86,897                                                  10,922                                                   1,832                                                  99,651  
                                                                               ----------------------------------------------------                      -----------------------------------------------------                      -----------------------------------------------------                      -----------------------------------------------------
Contribution margin                                                             $   263,215                           $   24,051                           $   19,306                          $   306,572  
                                                                               == ==================== ======= ====================                      ==== ==================== ====== ====================                      ==== ==================== ====== ====================                      === ==================== ======= ====================
Other operating expenses                                                                                                                                                                                                                                                                                                                 99,013  
                                                                                                                                                                                                                                                                                                               -----------------------------------------------------
Operating income                                                                                                                                                                                                                                                                                                                        207,559
Other expense                                                                                                                                                                                                                                                                                                                            80,101  
                                                                                                                                                                                                                                                                                                               -----------------------------------------------------
Income before income taxes                                                                                                                                                                                                                                                                                                              127,458
Provision for income taxes                                                                                                                                                                                                                                                                                                               49,198  
                                                                                                                                                                                                                                                                                                               -----------------------------------------------------
Net income                                                                                                                                                                                                                                                                                                       $    78,260  
                                                                                                                                                                                                                                                                                                               === ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                 

*Certain immaterial amounts relating to intersegment revenues and other revenues were reclassified between the International OTC Healthcare segment and the North American OTC Healthcare segment. There were no changes to the consolidated financial statements for any periods presented.

About Non-GAAP Financial Measures

We define Non-GAAP Organic Revenues as Total Revenues excluding revenues associated with products acquired or divested in the periods presented. We define Non-GAAP Organic Revenues on a Constant Currency basis as Total Revenues excluding acquisitions and divestitures and the impact of current year foreign exchange rates on total revenues. We define Non-GAAP Total Revenues on a Constant Currency basis as Total Revenues excluding the impact of currency exchange rates on total revenues. We define Non-GAAP Adjusted EBITDA as earnings before interest expense (income), income taxes, depreciation and amortization, inventory step-up charges, certain other legal and professional fees, other acquisition-related costs, costs associated with our CEO transition, gain on sale of asset, and loss on extinguishment of debt. Non-GAAP Adjusted EBITDA Margin is calculated as Non-GAAP Adjusted EBITDA divided by GAAP Total Revenues. We define Non-GAAP Adjusted Gross Margin as Gross Profit before inventory step up charges, and certain other acquisition and integration-related costs. Non-GAAP Adjusted Gross Margin percentage is calculated based on Non-GAAP Adjusted Gross Margin divided by GAAP Total Revenues. We define Non-GAAP Adjusted General and Administrative expenses as General and Administrative expenses minus certain other legal and professional fees, acquisition and other integration costs, and costs associated with our CEO transition. Non-GAAP Adjusted General and Administrative expense percentage is calculated based on Non-GAAP Adjusted General and Administrative expense divided by GAAP Total Revenues. We define Non-GAAP Adjusted Net Income as Net Income before inventory step-up charges, certain other legal and professional fees, other acquisition and integration-related costs, costs associated with our CEO transition, accelerated amortization of debt origination costs, gain on sale of asset, loss on extinguishment of debt, and the applicable tax impacts associated with these items and other non-deductible items. Non-GAAP Adjusted EPS is calculated based on Non-GAAP Adjusted Net Income, divided by the weighted average number of common and potential common shares outstanding during the period. We define Non-GAAP Free Cash Flow as net cash provided by operating activities less cash paid for capital expenditures. We define Non-GAAP Adjusted Free Cash Flow as net cash provided by operating activities less purchases of property and equipment plus payments associated with a premium on extinguishment of the 2012 Senior Notes and acquisitions for integration, transition, and other payments associated with acquisitions. Non-GAAP Organic Revenues, Non-GAAP Organic Revenues on a Constant Currency basis, Non-GAAP Total Revenues on a Constant Currency basis, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted EBITDA Margin, Non-GAAP Adjusted Gross Margin, Non-GAAP Adjusted Gross Margin percentage, Non-GAAP Adjusted General and Administrative Expense, Non-GAAP Adjusted General and Administrative Expense percentage, Non-GAAP Adjusted Net Income, Non-GAAP Adjusted EPS, Non-GAAP Free Cash Flow, and Non-GAAP Adjusted Free Cash Flow may not be comparable to similarly titled measures reported by other companies.

We are presenting Non-GAAP Organic Revenues, Non-GAAP Organic Revenues on a Constant Currency basis, Non-GAAP Total Revenues on a Constant Currency basis, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted EBITDA Margin, Non-GAAP Adjusted Gross Margin, Non-GAAP Adjusted Gross Margin percentage, Non-GAAP Adjusted General and Administrative Expense, Non-GAAP Adjusted General and Administrative Expense percentage, Non-GAAP Adjusted Net Income, Non-GAAP Adjusted EPS, Non-GAAP Free Cash Flow, and Non-GAAP Adjusted Free Cash Flow, because they provide additional ways to view our operation when considered with both our GAAP results and the reconciliation to net income and net cash provided by operating activities, respectively, which we believe provides a more complete understanding of our business than could be obtained absent this disclosure. Each of Non-GAAP Organic Revenues, Non-GAAP Organic Revenues on a Constant Currency basis, Non-GAAP Total Revenues on a Constant Currency basis, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted EBITDA Margin, Non-GAAP Adjusted Gross Margin, Non-GAAP Adjusted Gross Margin percentage, Non-GAAP Adjusted General and Administrative Expense, Non-GAAP Adjusted General and Administrative Expense percentage, Non-GAAP Adjusted Net Income, Non-GAAP Adjusted EPS, Non-GAAP Free Cash Flow, and Non-GAAP Adjusted Free Cash Flow is presented solely as a supplemental disclosure because (i) we believe it is a useful tool for investors to assess the operating performance of the business without the effect of these items; (ii) we believe that investors will find this data useful in assessing shareholder value; and (iii) we use Non-GAAP Organic Revenues, Non-GAAP Organic Revenues on a Constant Currency basis, Non-GAAP Total Revenues on a Constant Currency basis, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted EBITDA Margin, Non-GAAP Adjusted Gross Margin, Non-GAAP Adjusted Gross Margin percentage, Non-GAAP Adjusted General and Administrative Expense, Non-GAAP Adjusted General and Administrative Expense percentage, Non-GAAP Adjusted Net Income, Non-GAAP Adjusted EPS, Non-GAAP Free Cash Flow, and Non-GAAP Adjusted Free Cash Flow internally to evaluate the performance of our personnel and also as a benchmark to evaluate our operating performance or compare our performance to that of our competitors. The use of Non-GAAP Organic Revenues, Non-GAAP Organic Revenues on a Constant Currency basis, Non-GAAP Total Revenues on a Constant Currency basis, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted EBITDA Margin, Non-GAAP Adjusted Gross Margin, Non-GAAP Adjusted Gross Margin percentage, Non-GAAP Adjusted General and Administrative Expense, Non-GAAP Adjusted General and Administrative Expense percentage, Non-GAAP Adjusted Net Income, Non-GAAP Adjusted EPS, Non-GAAP Free Cash Flow, and Non-GAAP Adjusted Free Cash Flow have limitations, and you should not consider these measures in isolation from or as an alternative to GAAP measures such as Total Revenues, General and Administrative expense, Operating income, Net income, and Net cash flow provided by operating activities, or cash flow statement data prepared in accordance with GAAP, or as a measure of profitability or liquidity.

The following tables set forth the reconciliation of Non-GAAP Organic Revenues, Non-GAAP Organic Revenues on a Constant Currency basis, Non-GAAP Total Revenues on a Constant Currency basis, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted EBITDA Margin, Non-GAAP Adjusted Gross Margin, Non-GAAP Adjusted Gross Margin percentage, Non-GAAP Adjusted General and Administrative Expense, Non-GAAP Adjusted General and Administrative Expense percentage, Non-GAAP Adjusted Net Income, Non-GAAP Adjusted EPS, Non-GAAP Free Cash Flow, and Non-GAAP Adjusted Free Cash Flow, all of which are non-GAAP financial measures, to GAAP Gross Profit, GAAP General and Administrative expense, GAAP Net Income, GAAP Diluted EPS and GAAP Net cash provided by operating activities, our most directly comparable financial measures presented in accordance with GAAP.

Reconciliation of GAAP Total Revenues to Non-GAAP Organic Revenues and Non-GAAP Organic Revenues on a Constant Currency basis and related growth percentages:

                                                                                                                                                                                                   
                                                                                                                                                          Three Months Ended                                                                                                                                                                 Year Ended
                                                                                                                                                               March 31,                                                                                                                                                                      March 31,
                                                                                                 ----------------------------------------------------------------------------------------------------------------------------                                                   ----------------------------------------------------------------------------------------------------------------------------
                                                                                                                           2016                                                      2015                                                                                              2016                                                      2015
                                                                                                 --------------------------------------------------------                     --------------------------------------------------------                                          --------------------------------------------------------                     --------------------------------------------------------
(In thousands)
------------------------------------------------------
GAAP Total Revenues                                                                                  $   207,855                            $   190,046                                                 $   806,247                            $   714,623  
                                                                                                 ----- -------------------- ------- --------------------                      ----- -------------------- ------- --------------------                                           ----- -------------------- ------- --------------------                      ----- -------------------- ------- --------------------
Adjustments:
------------------------------------------------------
Hydralyte revenues (1)                                                                                               --                                                               --                                                                                            (1,217 )                                                             --
Insight revenues (2)                                                                                                 --                                                               --                                                                                           (73,630 )                                                             --
DenTek revenues (3)                                                                                                         (10,687 )                                                             --                                                                        (10,687 )                                                             --  
                                                                                                 -------------------------------------------------------                      -------------------------------------------------------                                           -------------------------------------------------------                      -------------------------------------------------------
Total adjustments                                                                                                           (10,687 )                                                             --                                                                        (85,534 )                                                             --  
                                                                                                 -------------------------------------------------------                      -------------------------------------------------------                                           -------------------------------------------------------                      -------------------------------------------------------
Non-GAAP Organic Revenues                                                                                                   197,168                                                   190,046                                                                        720,713                                                   714,623  
                                                                                                 =======================================================                      =======================================================                                           =======================================================                      =======================================================
Organic Revenue Growth (Decline)                                                                                                3.7                    %                                                                                                                                    0.9                    %                       
                                                                                                 =======================================================                      ========================================================                                          =======================================================                      ========================================================
Impact of foreign currency exchange rates (4)                                                                                                                                          (2,257 )                                                                                                                                                   (13,862 )
                                                                                                 --------------------------------------------------------                     -------------------------------------------------------                                           --------------------------------------------------------                     -------------------------------------------------------
Non-GAAP Organic Revenues on a constant currency basis                                               $   197,168                            $   187,789                                                 $   720,713                            $   700,761  
                                                                                                 ===== ==================== ======= ====================                      ===== ==================== ======= ====================                                           ===== ==================== ======= ====================                      ===== ==================== ======= ====================
Constant Currency Organic Revenue Growth                                                                                        5.0                    %                                                                                                                                                       2.8                    %
                                                                                                 =======================================================                                                                                                                        =======================================================
                                                                                                                                                                                                                                                                                                                                                              
(1)    Revenue adjustments relate to our International OTC Healthcare
                          segment
(2)                       Revenue adjustments relate to our North American OTC Healthcare
                          segment
(3)                       Revenue adjustments relate to our North American and International
                          OTC Healthcare segment
(4)                       Foreign currency exchange rate adjustments relate to all segments
                          

Reconciliation of GAAP Total Revenues to Non-GAAP Total Revenues on a Constant Currency basis and related growth percentages:

                                                                                                                                                                                             
                                                                                                                                                      Three Months Ended                                                                                                                                                               Year Ended
                                                                                                                                                           March 31,                                                                                                                                                                    March 31,
                                                                                               ------------------------------------------------------------------------------------------------------------------------                                                   ---------------------------------------------------------------------------------------------------------------------------
                                                                                                                        2016                                                    2015                                                                                            2016                                                      2015
                                                                                               -------------------------------------------------------                     -----------------------------------------------------                                          -------------------------------------------------------                     --------------------------------------------------------
(In thousands)
----------------------------------------------------
GAAP Total Revenues                                                                               $   207,855                                            $   190,046                                                                   $   806,247                                               $   714,623
Impact of foreign currency exchange rates (1)                                                                     --                                                 (2,257 )                                                                                 --                                                   (13,862 )
                                                                                               ------------------------------------------------------                      ----------------------------------------------------                                           ------------------------------------------------------                      -------------------------------------------------------
Non-GAAP Total Revenues on a constant currency basis                                              $   207,855                         $   187,789                                                $   806,247                            $   700,761  
                                                                                               ==== ==================== ======= ====================                      == ==================== ======= ====================                                           ==== ==================== ======= ====================                      ===== ==================== ======= ====================
Constant Currency Revenue Growth                                                                                            10.7                    %                                                                                                                                                  15.1                    %
                                                                                               ======================================================                                                                                                                     ======================================================
                                                                                                                                                                                                                                                                                                                                                       
(1)    Foreign currency exchange rate adjustments relate to all segments
                          

Reconciliation of GAAP Gross Profit to Non-GAAP Adjusted Gross Margin and related Adjusted Gross Margin percentage:

                                                                                                                                                                                                               
                                                                                                                                                                       Three Months Ended                                                                                                                                                                Year Ended
                                                                                                                                                                            March 31,                                                                                                                                                                     March 31,
                                                                                                               --------------------------------------------------------------------------------------------------------------------------                                                   ---------------------------------------------------------------------------------------------------------------------------
                                                                                                                                        2016                                                     2015                                                                                             2016                                                      2015
                                                                                                               -------------------------------------------------------                     -------------------------------------------------------                                          -------------------------------------------------------                     --------------------------------------------------------
(In thousands)
--------------------------------------------------------------------
GAAP Total Revenues                                                                                               $   207,855                           $   190,046                                                $   806,247                            $   714,623  
                                                                                                               ==== ==================== ======= ====================                      ==== ==================== ======= ====================                                           ==== ==================== ======= ====================                      ===== ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                         
GAAP Gross Profit                                                                                                 $   118,251                           $   110,070                                                $   467,211                            $   406,223  
                                                                                                               ---- -------------------- ------- --------------------                      ---- -------------------- ------- --------------------                                           ---- -------------------- ------- --------------------                      ----- -------------------- ------- --------------------
Adjustments:
--------------------------------------------------------------------
Inventory step-up charges and other costs associated with the                                                                     --                                                              --                                                                                   --                                                                          246
Hydralyte acquisition (1)
Inventory step-up charges associated with Insight acquisition (2)                                                                 --                                                              --                                                                                   --                                                                        1,979
Inventory step-up charges and other costs associated with the DenTek                                                                       1,387                                           --                                                                         1,387                                            --  
acquisition (3)
                                                                                                               -------------------------------   --------------------                      -------------------------------   --------------------                                           -------------------------------   --------------------                      --------------------------------   --------------------
Total adjustments                                                                                                                          1,387                                           --                                                                         1,387                                                     2,225  
                                                                                                               ------------------------------------------------------                      ------------------------------------------------------                                           ------------------------------------------------------                      -------------------------------------------------------
Non-GAAP Adjusted Gross Margin                                                                                    $   119,638                           $   110,070                                                $   468,598                            $   408,448  
                                                                                                               ==== ==================== ======= ====================                      ==== ==================== ======= ====================                                           ==== ==================== ======= ====================                      ===== ==================== ======= ====================
Non-GAAP Adjusted Gross Margin %                                                                                                            57.6                    %                                                   57.9                    %                                                                        58.1                    %                                                    57.2                    %
                                                                                                               ======================================================                      ======================================================                                           ======================================================                      =======================================================
                                                                                                                                                                                                                                                                                                                                                                                                            
(1)   Inventory step-up charges and other costs relate to our
                         International OTC Healthcare segment
(2)                      Inventory step-up charges relate to our North American OTC
                         Healthcare segment
(3)                      Inventory step-up charges relate to our North American and
                         International OTC Healthcare segments
                          

Reconciliation of GAAP General and Administrative Expense to Non-GAAP Adjusted General and Administrative Expense and related Non-GAAP Adjusted General and Administrative Expense percentage:

                                                                                                                                                                                                             
                                                                                                                                                                      Three Months Ended                                                                                                                                                             Year Ended
                                                                                                                                                                           March 31,                                                                                                                                                                  March 31,
                                                                                                               ------------------------------------------------------------------------------------------------------------------------                                                   ------------------------------------------------------------------------------------------------------------------------
                                                                                                                                        2016                                                    2015                                                                                            2016                                                    2015
                                                                                                               ------------------------------------------------------                     ------------------------------------------------------                                          ------------------------------------------------------                     ------------------------------------------------------
(In thousands)
--------------------------------------------------------------------
GAAP General and Administrative Expense                                                                           $   20,232                           $   17,685                                                $   72,418                           $   81,273  
                                                                                                               ---- -------------------- ------ --------------------                      ---- -------------------- ------ --------------------                                           ---- -------------------- ------ --------------------                      ---- -------------------- ------ --------------------
Adjustments:
--------------------------------------------------------------------
Costs associated with CEO transition                                                                                             --                                                             --                                                                                           1,406                                                             --
Legal and professional fees associated with acquisitions                                                                                  1,096                                                                        640                                                                                           2,112                                                                     10,974
Stamp/Duty Tax on Australian acquisition                                                                                         --                                                             --                                                                                  --                                                                      2,940
Integration, transition and other costs associated with acquisitions                                                                        289                                                     920                                                                          289                                                  10,533  
                                                                                                               -----------------------------------------------------                      -----------------------------------------------------                                           -----------------------------------------------------                      -----------------------------------------------------
Total adjustments                                                                                                                         1,385                                                   1,560                                                                        3,807                                                  24,447  
                                                                                                               -----------------------------------------------------                      -----------------------------------------------------                                           -----------------------------------------------------                      -----------------------------------------------------
Non-GAAP Adjusted General and Administrative Expense                                                              $   18,847                           $   16,125                                                $   68,611                           $   56,826  
                                                                                                               ==== ==================== ====== ====================                      ==== ==================== ====== ====================                                           ==== ==================== ====== ====================                      ==== ==================== ====== ====================
Non-GAAP Adjusted General and Administrative Expense Percentage                                                                             9.1                    %                                                   8.5                    %                                                                        8.5                    %                                                   8.0                    %
                                                                                                               =====================================================                      =====================================================                                           =====================================================                      =====================================================
                                                                                                                                                                                                                                                                                                                                                                                                       

Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA and related Non-GAAP Adjusted EBITDA Margin:

                                                                                                                                                                                                                 
                                                                                                                                                                          Three Months Ended                                                                                                                                                              Year Ended
                                                                                                                                                                               March 31,                                                                                                                                                                   March 31,
                                                                                                                   ------------------------------------------------------------------------------------------------------------------------                                                   --------------------------------------------------------------------------------------------------------------------------
                                                                                                                                            2016                                                    2015                                                                                            2016                                                     2015
                                                                                                                   ------------------------------------------------------                     ------------------------------------------------------                                          -------------------------------------------------------                     -------------------------------------------------------
(In thousands)
------------------------------------------------------------------------
GAAP Net Income                                                                                                       $   13,936                                              $   23,772                                                                   $    99,907                                              $    78,260
Interest expense, net                                                                                                                        23,147                                                                     23,796                                                                                           85,160                                                                      81,234
Provision for income taxes                                                                                                                   10,667                                                                     13,677                                                                                           57,278                                                                      49,198
Depreciation and amortization                                                                                                                 6,198                                                   5,773                                                                        23,676                                                   17,740  
                                                                                                                   -----------------------------------------------------                      -----------------------------------------------------                                           ------------------------------------------------------                      ------------------------------------------------------
Non-GAAP EBITDA:                                                                                                                             53,948                                                  67,018                                                                       266,021                                                  226,432  
                                                                                                                   -----------------------------------------------------                      -----------------------------------------------------                                           ------------------------------------------------------                      ------------------------------------------------------
Adjustments:
------------------------------------------------------------------------
Inventory step-up charges and other costs associated with the                                                                        --                                                             --                                                                                   --                                                                         246
Hydralyte acquisition (1)
Inventory step-up charges associated with Insight acquisition (2)                                                                    --                                                             --                                                                                   --                                                                       1,979
Inventory step-up charges and other costs associated with the DenTek                                                                          1,387                                                             --                                                                                            1,387                                                              --
acquisition (3)
Costs associated with CEO transition (4)                                                                                             --                                                             --                                                                                            1,406                                                              --
Legal and professional fees associated with acquisitions (4)                                                                                  1,096                                                                        640                                                                                            2,112                                                                      10,974
Stamp/Duty Tax on Australian acquisition (4)                                                                                         --                                                             --                                                                                   --                                                                       2,940
Integration, transition and other costs associated with acquisitions (4)                                                                        289                                                                        920                                                                                              289                                                                      10,533
Gain on sale of asset                                                                                                                --                                                             --                                                                                   --                                                                      (1,133 )
Loss on extinguishment of debt                                                                                                               17,519                                          --                                                                        17,970                                           --  
                                                                                                                   -----------------------------------------------------                      -----------------------------------------------------                                           ------------------------------------------------------                      ------------------------------------------------------
Total adjustments                                                                                                                            20,291                                                   1,560                                                                        23,164                                                   25,539  
                                                                                                                   -----------------------------------------------------                      -----------------------------------------------------                                           ------------------------------------------------------                      ------------------------------------------------------
Non-GAAP Adjusted EBITDA                                                                                              $   74,239                           $   68,578                                                $   289,185                           $   251,971  
                                                                                                                   ==== ==================== ====== ====================                      ==== ==================== ====== ====================                                           ==== ==================== ======= ====================                      ==== ==================== ======= ====================
Non-GAAP Adjusted EBITDA Margin                                                                                                                35.7                    %                                                  36.1                    %                                                                        35.9                    %                                                   35.3                    %
                                                                                                                   =====================================================                      =====================================================                                           ======================================================                      ======================================================
                                                                                                                                                                                                                                                                                                                                                                                                             
(1)    Inventory step-up charges and other costs relate to our
                          International OTC Healthcare segment
(2)                       Inventory step-up charges relate to our North American OTC
                          Healthcare segment
(3)                       Inventory step-up charges relate to our North American and
                          International OTC Healthcare segments
(4)                       Adjustments relate to G&A expenses
                          

Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income and related Adjusted Earnings Per Share:

                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                         Three Months Ended March 31,                                                                                                                                                                                                                                                            Year Ended March 31,
                                                                                                                   ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                            2016                                                 2016                                                   2015                                                 2015                                                                                           2016                                                  2016                                                   2015                                                 2015
                                                                                                                                                                                               Adjusted                                                                                                                       Adjusted                                                                                                                                             Adjusted                                                                                                                       Adjusted
                                                                                                                                                                                                  EPS                                                                                                                            EPS                                                                                                                                                  EPS                                                                                                                            EPS
                                                                                                                   --------------------------------------------------    ------------------------------------------------                         --------------------------------------------------    ------------------------------------------------                                              ---------------------------------------------------    ------------------------------------------------                         --------------------------------------------------    ------------------------------------------------
(In thousands)
------------------------------------------------------------------------
GAAP Net Income                                                                                                       $   13,936      $   0.26                           $   23,772      $   0.45                                                $    99,907      $   1.88                           $   78,260      $   1.49  
                                                                                                                   ---- -------------------- ------ -------------------- ---- -------------------- ---- --------------------                      ---- -------------------- ------ -------------------- ---- -------------------- ---- --------------------                                           ---- -------------------- ------- -------------------- ---- -------------------- ---- --------------------                      ---- -------------------- ------ -------------------- ---- -------------------- ---- --------------------
Adjustments:
------------------------------------------------------------------------
Inventory step-up charges and other costs associated the Hydralyte                                                                   --                                      --                                                             --                                      --                                                                                   --                                      --                                                                        246                                      --
acquisition (1)
Inventory step-up charges associated with Insight acquisition (2)                                                                    --                                      --                                                             --                                      --                                                                                   --                                      --                                                                      1,979                                                0.04
Inventory step-up charges and other costs associated with the DenTek                                                                          1,387                                                0.03                                                             --                                      --                                                                                            1,387                                                0.03                                                             --                                      --
acquisition (3)
Costs associated with CEO transition (4)                                                                                             --                                      --                                                             --                                      --                                                                                            1,406                                                0.02                                                             --                                      --
Legal and professional fees associated with acquisitions (4)                                                                                  1,096                                                0.02                                                                        640                                                0.01                                                                                            2,112                                                0.04                                                                     10,974                                                0.21
Stamp/Duty Tax on Australian acquisition(4)                                                                                          --                                      --                                                             --                                      --                                                                                   --                                      --                                                                      2,940                                                0.05
Integration, transition and other costs associated with acquisitions (4)                                                                        289                                                0.01                                                                        920                                                0.02                                                                                              289                                                0.01                                                                     10,533                                                0.20
Accelerated amortization of debt origination costs                                                                                   --                                      --                                                             --                                      --                                                                                   --                                      --                                                                        218                                      --
Gain on sale of asset                                                                                                                --                                      --                                                             --                                      --                                                                                   --                                      --                                                                     (1,133 )                                             (0.02 )
Loss on extinguishment of debt                                                                                                               17,519                                                0.33                                                             --                                      --                                                                                           17,970                                                0.34                                                             --                                      --
Tax impact of adjustments                                                                                                                    (6,294 )                                             (0.13 )                                                                     (549 )                                             (0.01 )                                                                                         (7,608 )                                             (0.15 )                                                                   (5,968 )                                             (0.11 )
                                                                                                                   ----------------------------------------------------- ---------------------------------------------------                      ----------------------------------------------------- ---------------------------------------------------                                           ------------------------------------------------------ ---------------------------------------------------                      ----------------------------------------------------- ---------------------------------------------------
Total adjustments                                                                                                                            13,997                             0.26                                                   1,011                             0.02                                                                        15,556                             0.29                                                  19,789                             0.37  
                                                                                                                   ----------------------------------------------------- ---------------------------------------------------                      ----------------------------------------------------- ---------------------------------------------------                                           ------------------------------------------------------ ---------------------------------------------------                      ----------------------------------------------------- ---------------------------------------------------
Non-GAAP Adjusted Net Income and Adjusted EPS                                                                         $   27,933      $   0.52                           $   24,783      $   0.47                                                $   115,463      $   2.17                           $   98,049      $   1.86  
                                                                                                                   ==== ==================== ====== ==================== ==== ==================== ==== ====================                      ==== ==================== ====== ==================== ==== ==================== ==== ====================                                           ==== ==================== ======= ==================== ==== ==================== ==== ====================                      ==== ==================== ====== ==================== ==== ==================== ==== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                             
(1)    Inventory step-up charges and other costs relate to our
                          International OTC Healthcare segment
(2)                       Inventory step-up charges relate to our North American OTC
                          Healthcare segment
(3)                       Inventory step-up charges relate to our North American and
                          International OTC Healthcare segments
(4)                       Adjustments relate to G&A expenses
                          

Reconciliation of GAAP Net Income to Non-GAAP Free Cash Flow and Non-GAAP Adjusted Free Cash Flow:

                                                                                                                                                                                                       
                                                                                                                                                                 Three Months Ended                                                                                                                                                            Year Ended
                                                                                                                                                                      March 31,                                                                                                                                                                 March 31,
                                                                                                           ----------------------------------------------------------------------------------------------------------------------                                                   ------------------------------------------------------------------------------------------------------------------------
                                                                                                                                   2016                                                   2015                                                                                           2016                                                    2015
                                                                                                           ----------------------------------------------------                     ------------------------------------------------------                                          -----------------------------------------------------                     -------------------------------------------------------
(In thousands)
----------------------------------------------------------------
GAAP Net Income                                                                                             $   13,936                           $   23,772                                              $    99,907                           $    78,260  
                                                                                                           -- -------------------- ------ --------------------                      ---- -------------------- ------ --------------------                                           -- -------------------- ------- --------------------                      ---- -------------------- ------- --------------------
Adjustments:
----------------------------------------------------------------
Adjustments to reconcile net income to net cash provided by                                                                        34,206                                                                     22,048                                                                                         96,221                                                                      64,668
operating activities as shown in the Statement of Cash Flows
Changes in operating assets and liabilities, net of effects from                                                                  (10,243 )                                                                    6,293                                                                     (21,778 )                                                                    13,327  
acquisitions as shown in the Statement of Cash Flows
                                                                                                           ----------------------------   --------------------                      ------------------------------   --------------------                                           -----------------------------   --------------------                      -------------------------------   --------------------
Total adjustments                                                                                                                  23,963                                                  28,341                                                                      74,443                                                   77,995  
                                                                                                           ---------------------------------------------------                      -----------------------------------------------------                                           ----------------------------------------------------                      ------------------------------------------------------
GAAP Net cash provided by operating activities                                                                                     37,899                                                                     52,113                                                                                        174,350                                                                     156,255
Purchases of property and equipment                                                                                                (1,028 )                                                                   (2,401 )                                                                                       (3,568 )                                                                    (6,101 )
                                                                                                           ---------------------------------------------------                      -----------------------------------------------------                                           ----------------------------------------------------                      ------------------------------------------------------
Non-GAAP Free Cash Flow                                                                                                            36,871                                                                     49,712                                                                                        170,782                                                                     150,154
Premium payment on extinguishment of 2012 Senior Notes                                                                             10,158                                                             --                                                                                         10,158                                                              --
Integration, transition and other payments associated with                                                                          1,665                                                     362                                                                       2,461                                                   13,563  
acquisitions
                                                                                                           ----------------------------   --------------------                      ------------------------------   --------------------                                           -----------------------------   --------------------                      -------------------------------   --------------------
Adjusted Non-GAAP Free Cash Flow                                                                            $   48,694                           $   50,074                                              $   183,401                           $   163,717  
                                                                                                           == ==================== ====== ====================                      ==== ==================== ====== ====================                                           == ==================== ======= ====================                      ==== ==================== ======= ====================
                                                                                                                                                                                                                                                                                                           

Outlook for Fiscal Year 2017:

Reconciliation of Projected GAAP EPS to Projected Non-GAAP Adjusted EPS:

                                            
                                                                                                                            2017 Projected EPS
                                                                                   ----------------------------------------------------------------------------------------------------
                                                                                                           Low                                     High
                                                                                   ---------------------------------------------------------------------- -----------------------------
Projected FY’17 GAAP EPS                                                            $   2.22      $   2.28
                                                                                   -- -------------------- ---- -------------------- -------------------- -- -------------------- ----
Adjustments:                                                                                                                          
Costs associated with DenTek integration                                                                   0.08                             0.08
                                                                                   ------------------------------------------------- -------------------- -----------------------------
Total adjustments                                                                                          0.08                             0.08
                                                                                   ------------------------------------------------- -------------------- -----------------------------
Projected Non-GAAP Adjusted EPS                                                     $   2.30      $   2.36
                                                                                   == ==================== ==== ==================== ==================== == ==================== ====
                                                                                                                                           

Reconciliation of Projected GAAP Net cash provided by operating activities to Projected Non-GAAP Free Cash Flow:

                                                                  
                                                                                                                               2017
                                                                                                                             Projected
                                                                                                                             Free Cash
                                                                                                                               Flow
                                                                                                         ---------------------------------------------
(In millions)
--------------------------------------------------------------
Projected FY’17 GAAP Net cash provided by operating activities                                            $   190
Additions to property and equipment for cash                                                                                      (8 )
                                                                                                         ------------------------------------------------
Projected Non-GAAP Free Cash Flow                                                                                                182
Payments associated with acquisitions                                                                                              3  
                                                                                                         ------------------------------------------------
Adjusted Non-GAAP Projected Free Cash Flow                                                                $   185  
                                                                                                         == ==================== === ====================
                                                                                                                                      

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20160512005216r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20160512005216/en/

SOURCE: Prestige Brands Holdings, Inc.

Prestige Brands Holdings, Inc. 
Dean Siegal, 914-524-6819 
or 
John Mills, 646-277-1254


Register |  Password |  Feedback |  Copyright |  Usage Agreement |  Privacy Policy |  Advertising |  About Us |  Contact Us |  FAQ 

Past performance is not indicative of future results

StockSelector.com, the StockSelector.com logo, and News Selects are trademarks of StockSelector.com.
Copyright © 1998 - 2019 StockSelector.com. All rights reserved.