Prestige Brands Holdings, Inc. (NYSE: PBH) today reported results for the fourth fiscal quarter and fiscal year ended March 31, 2010.
Revenues for the fourth fiscal quarter were $71.4 million, which were $2.8 million, or 4% greater than the fourth quarter of fiscal 2009. These results reflect revenue increases in the over-the-counter healthcare and household cleaning products segments, and a decline in the personal care products segment. Contributing to the over-the-counter healthcare results was an increase in other revenues which reflects royalty revenue received as a result of a legal settlement.
Reported net income for the fourth fiscal quarter was $3.3 million, or $0.07 per diluted share, compared to a loss of $211.1 million or ($4.22) per diluted share in the prior year comparable quarter. Excluding charges for the impairment of intangible assets and loss on extinguishment of debt, net income (adjusted) would have been $7.4 million or $0.15 per diluted share during the 2010 fourth quarter compared to $9.0 million or $0.18 per diluted share in the prior year comparable period. Net income (adjusted) is a "non-GAAP financial measure." A table is included with the financial statements at the end of this news release which reconciles net income (adjusted) to net income, the most directly comparable measure presented in accordance with generally accepted accounting principles.
The decline in net income (adjusted) from 2009 to 2010 was primarily due to increased advertising and promotion (A&P) and general and administrative (G&A) expenses.
Commenting on the results, Matthew Mannelly, President and CEO said, "We are pleased with our revenue growth for the fourth quarter. Our results reflect our commitment to investing in, and growing our core OTC brands. Our focus will continue to be against these core brands as we build upon the fourth quarter momentum in fiscal year 2011. In addition, we successfully completed our debt refinancing which we expect to provide us with ample liquidity through 2018, and additional borrowing capacity should an appropriate acquisition opportunity arise."
Results by Segment for Fourth Fiscal Quarter
Over-The-Counter Healthcare
Net revenues for the OTC segment were $42.6 million, $2.8 million or 7% greater than the prior year comparable period. Net sales were $39.5 million, 1% below last year's net sales of $39.8 million. Increases in sales of Clear Eyes®, Murine®, Compound W®, Dermoplast® and The Doctor's® NightGuard™ were offset by sales declines in Chloraseptic®, Little Remedies®, and the Allergen Block products. Other revenue increased compared to the prior year due to the favorable outcome of a legal dispute.
Household Cleaning Products
This segment reported net revenues of $27.0 million, $300 thousand greater than the prior year comparable period. Sales increases in the Spic and Span® and Chore Boy® brands were offset by a slight decline in the Comet® brand.
Personal Care Products
Net revenues for the personal care segment were $1.8 million, $300 thousand or 14% below last year's fourth fiscal quarter. The sales decline was primarily due to decreases in sales of Cutex®.
Fiscal Year 2010
The Company reported total revenues of $302.0 million for the fiscal year ended March 31, 2010, slightly below fiscal 2009 total revenues of $303.1 million. Reported net income of $32.1 million, or $0.64 per diluted share for 2010, compared to a loss of $186.8 million, or ($3.74) per diluted share in 2009. Excluding charges for the impairment of intangible assets and loss on extinguishment of debt, and the effects of an increase in deferred tax liabilities related to the divestiture of the shampoo brands, net income (adjusted) was $37.2 million or $0.74 per diluted share in 2010, compared to $33.3 million or $0.67 per diluted share during 2009. Net income (adjusted) is a "non-GAAP financial measure." A table is included with the financial statements at the end of this news release which reconciles net income (adjusted) to net income, the most directly comparable measure presented in accordance with generally accepted accounting principles.
Free Cash Flow
Free cash flow is a "non-GAAP financial measure" and is presented here because management believes it is a commonly used measure of liquidity, indicative of cash available for debt repayment and acquisitions. The company defines "free cash flow" as operating cash flow minus capital expenditures.
The company's free cash flow for the fourth quarter ended March 31, 2010 was $8.7 million, a decrease of 34% from free cash flow of $13.2 million in the fourth fiscal quarter of 2009. The decrease in free cash flow is largely a result of payment of interest incurred by early retirement of certain debt in connection with the company's recent refinancing and an increase in corporate tax receivables. For fiscal year 2010, free cash flow totaled $58.7 million, composed of operating cash flow of $59.4 million minus capital expenditures of $0.7 million. This compared to free cash flow of $66.2 million for fiscal year 2009, composed of operating cash flow of $66.7 million less capital expenditures of $0.5 million.
Review highlights advances in flexible optoelectronics for cardiac healthcare