[
X ]
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
|
For
the quarterly period ended
June 30,
2008
|
|
OR
|
[ ]
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
|
For
the transition period from ____ to
_____
|
|
Commission
File Number: 001-32433
|
Delaware
|
20-1297589
|
|
(State
or other jurisdiction of
incorporation
or organization)
|
(I.R.S.
Employer Identification No.)
|
90
North Broadway
Irvington,
New York 10533
|
(Address
of Principal Executive Offices, including zip code)
|
(914)
524-6810
|
(Registrant’s
telephone number, including area
code)
|
Large accelerated filer o | Accelerated filer x | Non-accelerated filer o | Smaller reporting company o |
Yes o | No x |
PART
I.
|
FINANCIAL
INFORMATION
|
|
Item
1.
|
Consolidated
Financial Statements
|
|
Consolidated
Statements of Operations – three months ended
|
||
June
30, 2008 and 2007 (unaudited)
|
2
|
|
Consolidated
Balance Sheets – June 30, 2008 and March 31, 2008
(unaudited)
|
3
|
|
Consolidated
Statement of Changes in Stockholders’ Equity and
|
||
Comprehensive
Income – three months ended June 30, 2008 (unaudited)
|
4
|
|
Consolidated
Statements of Cash Flows – three months ended
|
||
June
30, 2008 and 2007 (unaudited)
|
5
|
|
Notes
to Unaudited Consolidated Financial Statements
|
6
|
|
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition
|
|
and
Results of Operations
|
24
|
|
Item
3.
|
Quantitative
and Qualitative Disclosure About Market Risk
|
38
|
Item
4.
|
Controls
and Procedures
|
38
|
PART
II.
|
OTHER
INFORMATION
|
|
Item
1.
|
Legal
Proceedings
|
39
|
Item
1A.
|
Risk
Factors
|
39
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
39
|
Item
5.
|
Other
Information
|
40
|
Item
6.
|
Exhibits
|
40
|
Signatures
|
41
|
PART
I
|
FINANCIAL
INFORMATION
|
Item
1.
|
FINANCIAL
STATEMENTS
|
Three
Months Ended June 30
|
||||||||
(In
thousands, except share data)
|
2008
|
2007
|
||||||
Revenues
|
||||||||
Net
sales
|
$ | 72,916 | $ | 78,041 | ||||
Other
revenues
|
618 | 570 | ||||||
Total
revenues
|
73,534 | 78,611 | ||||||
Costs
of Sales
|
||||||||
Costs
of sales
|
34,272 | 37,322 | ||||||
Gross
profit
|
39,262 | 41,289 | ||||||
Operating
Expenses
|
||||||||
Advertising
and promotion
|
7,319 | 7,786 | ||||||
General
and administrative
|
7,973 | 7,646 | ||||||
Depreciation
and amortization
|
2,756 | 2,751 | ||||||
Total
operating expenses
|
18,048 | 18,183 | ||||||
Operating
income
|
21,214 | 23,106 | ||||||
Other
(income) expense
|
||||||||
Interest
income
|
(73 | ) | (187 | ) | ||||
Interest
expense
|
8,756 | 9,874 | ||||||
Total
other (income) expense
|
8,683 | 9,687 | ||||||
Income
before income taxes
|
12,531 | 13,419 | ||||||
Provision
for income taxes
|
4,750 | 5,099 | ||||||
Net
income
|
$ | 7,781 | $ | 8,320 | ||||
Basic
earnings per share
|
$ | 0.16 | $ | 0.17 | ||||
Diluted
earnings per share
|
$ | 0.16 | $ | 0.17 | ||||
Weighted
average shares outstanding:
|
||||||||
Basic
|
49,880 | 49,660 | ||||||
Diluted
|
50,035 | 50,038 |
Assets
|
June
30, 2008
|
March
31, 2008
|
||||||
Current
assets
|
||||||||
Cash
and cash equivalents
|
$ | 6,370 | $ | 6,078 | ||||
Accounts
receivable
|
38,325 | 44,219 | ||||||
Inventories
|
28,811 | 29,696 | ||||||
Deferred
income tax assets
|
3,006 | 3,066 | ||||||
Prepaid
expenses and other current assets
|
4,004 | 2,316 | ||||||
Total
current assets
|
80,516 | 85,375 | ||||||
Property
and equipment
|
1,365 | 1,433 | ||||||
Goodwill
|
308,915 | 308,915 | ||||||
Intangible
assets
|
644,056 | 646,683 | ||||||
Other
long-term assets
|
7,316 | 6,750 | ||||||
Total
Assets
|
$ | 1,042,168 | $ | 1,049,156 | ||||
Liabilities
and Stockholders’ Equity
|
||||||||
Current
liabilities
|
||||||||
Accounts
payable
|
$ | 17,935 | $ | 20,539 | ||||
Accrued
interest payable
|
2,604 | 5,772 | ||||||
Income
taxes payable
|
1,762 | -- | ||||||
Other
accrued liabilities
|
6,328 | 8,030 | ||||||
Current
portion of long-term debt
|
3,550 | 3,550 | ||||||
Total
current liabilities
|
32,179 | 37,891 | ||||||
Long-term
debt
|
392,675 | 407,675 | ||||||
Other
long-term liabilities
|
2,377 | 2,377 | ||||||
Deferred
income tax liabilities
|
125,781 | 122,140 | ||||||
Total
Liabilities
|
553,012 | 570,083 | ||||||
Commitments
and Contingencies – Note 14
|
||||||||
Stockholders’
Equity
|
||||||||
Preferred
stock - $0.01 par value
|
||||||||
Authorized – 5,000
shares
|
||||||||
Issued and outstanding –
None
|
-- | -- | ||||||
Common
stock - $0.01 par value
|
||||||||
Authorized – 250,000
shares
|
||||||||
Issued – 50,060 shares at June 30
and March 31, 2008
|
501 | 501 | ||||||
Additional
paid-in capital
|
380,993 | 380,364 | ||||||
Treasury
stock, at cost – 101 shares and 59 shares at
June
30 and March 31, 2008, respectively
|
(57 | ) | (47 | ) | ||||
Accumulated
other comprehensive income
|
684 | (999 | ) | |||||
Retained
earnings
|
107,035 | 99,254 | ||||||
Total
stockholders’ equity
|
489,156 | 479,073 | ||||||
Total
Liabilities and Stockholders’ Equity
|
$ | 1,042,168 | $ | 1,049,156 |
Common
Stock
Par
Shares
Value
|
Additional
Paid-in
Capital
|
Treasury
Stock
Shares
Amount
|
Accumulated
Other
Comprehensive
Income
|
Retained
Earnings
|
Totals
|
|||||||||||||||||||||||||||
(In
thousands)
|
||||||||||||||||||||||||||||||||
Balances
- March 31, 2008
|
50,060 | $ | 501 | $ | 380,364 | 59 | $ | (47 | ) | $ | (999 | ) | $ | 99,254 | $ | 479,073 | ||||||||||||||||
Stock-based
compensation
|
-- | -- | 629 | -- | -- | -- | -- | 629 | ||||||||||||||||||||||||
Purchase
of common stock for treasury
|
-- | -- | -- | 42 | (10 | ) | -- | -- | (10 | ) | ||||||||||||||||||||||
Components
of comprehensive income:
|
||||||||||||||||||||||||||||||||
Net
income
|
-- | -- | -- | -- | -- | -- | 7,781 | 7,781 | ||||||||||||||||||||||||
Amortization
of interest rate caps reclassified into earnings, net of income tax
expense of $32
|
-- | -- | -- | -- | -- | 53 | -- | 53 | ||||||||||||||||||||||||
Unrealized
gain on interest rate caps, net of income tax expense of
$1,000
|
-- | -- | -- | -- | -- | 1,630 | -- | 1,630 | ||||||||||||||||||||||||
Total
comprehensive income
|
-- | -- | -- | -- | -- | -- | -- | 9,464 | ||||||||||||||||||||||||
Balances
– June 30, 2008
|
50,060 | $ | 501 | $ | 380,993 | 101 | $ | (57 | ) | $ | 684 | $ | 107,035 | $ | 489,156 |
Three
Months Ended June 30
|
||||||||
(In
thousands)
|
2008
|
2007
|
||||||
Operating
Activities
|
||||||||
Net
income
|
$ | 7,781 | $ | 8,320 | ||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Depreciation
and amortization
|
2,756 | 2,751 | ||||||
Deferred
income taxes
|
2,669 | 2,934 | ||||||
Amortization
of deferred financing costs
|
622 | 780 | ||||||
Stock-based
compensation
|
629 | 460 | ||||||
Changes
in operating assets and liabilities
|
||||||||
Accounts
receivable
|
5,894 | (1,948 | ) | |||||
Inventories
|
885 | 1,663 | ||||||
Prepaid
expenses and other current assets
|
(1,688 | ) | (483 | ) | ||||
Accounts
payable
|
(1,077 | ) | (2,911 | ) | ||||
Income
taxes payable
|
1,762 | 1,144 | ||||||
Accrued
liabilities
|
(4,870 | ) | (4,302 | ) | ||||
Net
cash provided by operating activities
|
15,363 | 8,408 | ||||||
Investing
Activities
|
||||||||
Purchases
of equipment
|
(61 | ) | (111 | ) | ||||
Net
cash used for investing activities
|
(61 | ) | (111 | ) | ||||
Financing
Activities
|
||||||||
Repayment
of long-term debt
|
(15,000 | ) | (15,887 | ) | ||||
Purchase
of common stock for treasury
|
(10 | ) | (4 | ) | ||||
Net
cash used for financing activities
|
(15,010 | ) | (15,891 | ) | ||||
Increase
(Decrease) in cash
|
292 | (7,594 | ) | |||||
Cash
- beginning of period
|
6,078 | 13,758 | ||||||
Cash
- end of period
|
$ | 6,370 | $ | 6,164 | ||||
Interest
paid
|
$ | 11,302 | $ | 12,036 | ||||
Income
taxes paid
|
$ | 440 | $ | 551 | ||||
See
accompanying notes.
|
1.
|
Business
and Basis of Presentation
|
Nature
of Business
|
Basis
of Presentation
|
Cash
and Cash Equivalents
|
Accounts
Receivable
|
Inventories
|
Property
and Equipment
|
Years
|
|
Machinery
|
5
|
Computer
equipment
|
3
|
Furniture
and fixtures
|
7
|
Leasehold
improvements
|
5
|
Goodwill
|
Intangible
Assets
|
Revenue
Recognition
|
Costs
of Sales
|
Advertising
and Promotion Costs
|
Stock-based
Compensation
|
Income
Taxes
|
Derivative
Instruments
|
Recently
Issued Accounting Standards
|
Accounts
Receivable
|
June
30,
2008
|
March
31,
2008
|
|||||||
Accounts
receivable
|
$ | 37,430 | $ | 44,918 | ||||
Other
receivables
|
2,508 | 1,378 | ||||||
39,938 | 46,296 | |||||||
Less
allowances for discounts, returns and
uncollectible
accounts
|
(1,613 | ) | (2,077 | ) | ||||
$ | 38,325 | $ | 44,219 |
Inventories
|
June
30,
2008
|
March
31,
2008
|
|||||||
Packaging
and raw materials
|
$ | 2,134 | $ | 2,463 | ||||
Finished
goods
|
26,677 | 27,233 | ||||||
$ | 28,811 | $ | 29,696 |
4.
|
Property
and Equipment
|
June
30,
2008
|
March
31,
2008
|
|||||||
Machinery
|
$ | 1,538 | $ | 1,516 | ||||
Computer
equipment
|
666 | 627 | ||||||
Furniture
and fixtures
|
205 | 205 | ||||||
Leasehold
improvements
|
344 | 344 | ||||||
2,753 | 2,692 | |||||||
Accumulated
depreciation
|
(1,388 | ) | (1,259 | ) | ||||
$ | 1,365 | $ | 1,433 |
5.
|
Goodwill
|
Over-the-
Counter
Healthcare
|
Household
Cleaning
|
Personal
Care
|
Consolidated
|
|||||||||||||
Balance
– March 31, 2008
|
$ | 233,615 | $ | 72,549 | $ | 2,751 | $ | 308,915 | ||||||||
Period
Activity
|
-- | -- | -- | -- | ||||||||||||
Balance
– June 30, 2008
|
$ | 233,615 | $ | 72,549 | $ | 2,751 | $ | 308,915 |
6.
|
Intangible
Assets
|
Indefinite
Lived
Trademarks
|
Finite
Lived
Trademarks
|
Non
Compete
Agreement
|
Totals
|
|||||||||||||
Carrying
Amounts
|
||||||||||||||||
Balance
– March 31, 2008
|
$ | 544,963 | $ | 139,503 | $ | 196 | $ | 684,662 | ||||||||
Period
Activity
|
-- | -- | -- | -- | ||||||||||||
Balance
– June 30, 2008
|
$ | 544,963 | $ | 139,503 | $ | 196 | $ | 684,662 | ||||||||
Accumulated
Amortization
|
||||||||||||||||
Balance
– March 31, 2008
|
$ | -- | $ | 37,838 | $ | 141 | $ | 37,979 | ||||||||
Period
Activity
|
-- | 2,616 | 11 | 2,627 | ||||||||||||
Balance
– June 30, 2008
|
$ | -- | $ | 40,454 | $ | 152 | $ | 40,606 |
Year Ending June
30
|
||||
2009
|
$ | 10,145 | ||
2010
|
9,089 | |||
2011
|
9,073 | |||
2012
|
9,073 | |||
2013
|
9,073 | |||
Thereafter
|
52,640 | |||
$ | 99,093 |
7.
|
Other
Accrued Liabilities
|
June
30,
2008
|
March
31,
2008
|
|||||||
Accrued
marketing costs
|
$ | 3,999 | $ | 4,136 | ||||
Accrued
payroll
|
1,423 | 2,845 | ||||||
Accrued
commissions
|
307 | 464 | ||||||
Other
|
599 | 585 | ||||||
$ | 6,328 | $ | 8,030 |
8.
|
Long-Term
Debt
|
June
30,
2008
|
March
31,
2008
|
|||||||
Senior
revolving credit facility (“Revolving Credit Facility”), which expires on
April 6, 2009 and is available for maximum borrowings of up to $60.0
million. The Revolving Credit Facility bears interest at the
Company’s option at either the prime rate plus a variable margin or LIBOR
plus a variable margin. The variable margins range from 0.75%
to 2.50% and at June 30, 2008, the interest rate on the Revolving Credit
Facility was 6.0% per annum. The Company is also required to
pay a variable commitment fee on the unused portion of the Revolving
Credit Facility. At June 30, 2008, the commitment fee was 0.50%
of the unused line. The Revolving Credit Facility is
collateralized by substantially all of the Company’s
assets.
|
$ | -- | $ | -- | ||||
Senior
secured term loan facility (“Tranche B Term Loan Facility”) that bears
interest at the Company’s option at either the prime rate plus a margin of
1.25% or LIBOR plus a margin of 2.25%. At June 30,
2008
, the
average interest rate on the Tranche B Term Loan Facility was
6.89%. Principal payments of $887,500 plus accrued interest are
payable quarterly. Current amounts outstanding under the
Tranche B Term Loan Facility mature on April 6, 2011 and are
collateralized by substantially all of the Company’s
assets.
|
270,225 | 285,225 | ||||||
Senior
Subordinated Notes that bear interest at 9.25% which is payable on April
15
th
and October 15
th
of each year. The Senior Subordinated Notes mature on April 15,
2012; however, the Company may redeem some or all of the Senior
Subordinated Notes at redemption prices set forth in the indenture
governing the Senior Subordinated Notes prior thereto. The
Senior Subordinated Notes are unconditionally guaranteed by Prestige
Brands Holdings, Inc., and its domestic wholly-owned subsidiaries other
than Prestige Brands, Inc., the issuer. Each of these
guarantees is joint and several. There are no significant
restrictions on the ability of any of the guarantors to obtain funds from
their subsidiaries.
|
126,000 | 126,000 | ||||||
396,225 | 411,225 | |||||||
Current
portion of long-term debt
|
(3,550 | ) | (3,550 | ) | ||||
$ | 392,675 | $ | 407,675 |
Year Ending June
30
|
||||
2009
|
$ | 3,550 | ||
2010
|
3,550 | |||
2011
|
263,125 | |||
2012
|
126,000 | |||
$ | 396,225 |
9.
|
Fair
Value Measurements
|
Notional
Amount
|
Interest
Rate
Cap
Percentage
|
Expiration
Date
|
|||||
(In
millions)
|
|||||||
$ | 50.0 | 3.25 | % |
May
31, 2006
|
|||
80.0 | 3.50 |
May
30, 2007
|
|||||
50.0 | 3.75 |
May
30, 2008
|
Level 1 | -- | Quoted market prices for identical instruments in active markets, | |
Level
2
|
--
|
Quoted
prices for similar instruments in active markets, as well as quoted prices
for identical or similar instruments in markets that are not considered
active, and
|
Level
3
|
--
|
Unobservable
inputs developed by the Company using estimates and assumptions reflective
of those that would be utilized by a market
participant.
|
|
Fair
Value Measurements at June 30, 2008
|
|||||||||||||||
(In
Thousands)
Description
|
June
30,
2008
|
Quoted
Prices
in
Active
Markets
for
Identical
Assets
(Level
1)
|
Significant
Other
Observable
Inputs
(Level
2)
|
Significant
Unobservable
Inputs
(Level
3)
|
||||||||||||
Interest
Rate Swap
|
$ | 1,100.0 | $ | -- | $ | 1,100.0 | $ | -- |
10.
|
Stockholders’
Equity
|
11.
|
Earnings
Per Share
|
Three
Months Ended June 30
|
||||||||
2008
|
2007
|
|||||||
Numerator
|
||||||||
Net
income
|
$ | 7,781 | $ | 8,320 | ||||
Denominator
|
||||||||
Denominator
for basic earnings per share – weighted average shares
|
49,880 | 49,660 | ||||||
Dilutive
effect of unvested restricted common stock, options and stock appreciation
rights issued to employees and directors
|
155 | 378 | ||||||
Denominator
for diluted earnings per share
|
50,035 | 50,038 | ||||||
Earnings
per Common Share:
|
||||||||
Basic
|
$ | 0.16 | $ | 0.17 | ||||
Diluted
|
$ | 0.16 | $ | 0.17 |
12.
|
Share-Based
Compensation
|
Restricted
Shares
|
Shares
(000)
|
Weighted-Average
Grant-Date
Fair
Value
|
||||||
Nonvested
at March 31, 2007
|
294.4 | $ | 11.05 | |||||
Granted
|
264.0 | 12.52 | ||||||
Vested
|
-- | -- | ||||||
Forfeited
|
(17.2 | ) | 11.19 | |||||
Nonvested
at June 30, 2007
|
541.2 | $ | 11.76 | |||||
Nonvested
at March 31, 2008
|
484.7 | $ | 11.78 | |||||
Granted
|
269.7 | 10.91 | ||||||
Vested
|
-- | -- | ||||||
Forfeited
|
(1.4 | ) | 10.91 | |||||
Nonvested
at June 30, 2008
|
753.0 | $ | 11.47 |
Three
Month Period Ended June 30
|
||||||||
2008
|
2007
|
|||||||
Expected
volatility
|
43.3 | % | 33.2 | % | ||||
Expected
dividends
|
-- | -- | ||||||
Expected
term in years
|
6.0 | 6.0 | ||||||
Risk-free
rate
|
3.2 | % | 4.5 | % |
Options
|
Shares
(000)
|
Weighted-Average
Exercise
Price
|
Weighted-
Average
Remaining
Contractual
Term
|
Aggregate
Intrinsic
Value
(000)
|
||||||||||||
Outstanding
at March 31, 2007
|
-- | $ | -- | -- | $ | -- | ||||||||||
Granted
|
255.1 | 12.86 | 10.0 | 30.6 | ||||||||||||
Exercised
|
-- | -- | -- | -- | ||||||||||||
Forfeited
or expired
|
-- | -- | -- | -- | ||||||||||||
Outstanding
at June 30, 2007
|
255.1 | $ | 12.86 | 10.0 | $ | 30.6 | ||||||||||
Outstanding
at March 31, 2008
|
253.5 | 12.86 | 9.2 | $ | -- | |||||||||||
Granted
|
413.3 | 10.91 | 10.0 | -- | ||||||||||||
Exercised
|
-- | -- | -- | |||||||||||||
Forfeited
or expired
|
-- | -- | -- | |||||||||||||
Outstanding
at June 30, 2008
|
666.8 | $ | 11.65 | 9.4 | $ | -- | ||||||||||
Exercisable
at June 30, 2008
|
-- | $ | -- | -- | $ | -- |
SARS
|
Shares
(000)
|
Grant
Date
Stock
Price
|
Weighted-
Average
Remaining
Contractual
Term
|
Aggregate
Intrinsic
Value
(000)
|
||||||||||||
Outstanding
at March 31, 2007
|
16.1 | $ | 9.97 | 2.0 | $ | 30.3 | ||||||||||
Granted
|
-- | -- | -- | -- | ||||||||||||
Forfeited
or expired
|
-- | -- | -- | -- | ||||||||||||
Outstanding
at June 30, 2007
|
16.1 | $ | 9.97 | 1.75 | $ | 48.5 | ||||||||||
Outstanding
at March 31, 2008
|
16.1 | $ | 9.97 | 1.0 | $ | -- | ||||||||||
Granted
|
-- | -- | -- | -- | ||||||||||||
Forfeited
or expired
|
(1.2 | ) | 9.97 | 1.0 | -- | |||||||||||
Outstanding
at June 30, 2008
|
14.9 | $ | 9.97 | 0.75 | $ | 10.3 | ||||||||||
Exercisable
at March 31, 2008
|
-- | $ | -- | -- | $ | -- |
13.
|
Income
Taxes
|
Commitments
and Contingencies
|
DenTek
Litigation
|
Facilities
|
Equipment
|
Total
|
||||||||||
Year Ending June 30,
|
||||||||||||
2009
|
$ | 598 | $ | 95 | $ | 693 | ||||||
2010
|
572 | 82 | 654 | |||||||||
2011
|
542 | 43 | 585 | |||||||||
2012
|
559 | 24 | 583 | |||||||||
2013
|
577 | -- | 577 | |||||||||
Thereafter
|
646 | -- | 646 | |||||||||
$ | 3,494 | $ | 244 | $ | 3,738 |
Concentrations
of Risk
|
16.
|
Business
Segments
|
Three
Months Ended June 30, 2008
|
||||||||||||||||
Over-the-
Counter
Healthcare
|
Household
Cleaning
|
Personal
Care
|
Consolidated
|
|||||||||||||
Net
sales
|
$ | 39,246 | $ | 28,404 | $ | 5,266 | $ | 72,916 | ||||||||
Other
revenues
|
-- | 618 | -- | 618 | ||||||||||||
Total
revenues
|
39,246 | 29,022 | 5,266 | 73,534 | ||||||||||||
Cost
of sales
|
13,208 | 17,923 | 3,141 | 34,272 | ||||||||||||
Gross
profit
|
26,038 | 11,099 | 2,125 | 39,262 | ||||||||||||
Advertising
and promotion
|
5,037 | 2,070 | 212 | 7,319 | ||||||||||||
Contribution
margin
|
$ | 21,001 | $ | 9,029 | $ | 1,913 | 31,943 | |||||||||
Other
operating expenses
|
10,729 | |||||||||||||||
Operating
income
|
21,214 | |||||||||||||||
Other
(income) expense
|
8,683 | |||||||||||||||
Provision
for income taxes
|
4,750 | |||||||||||||||
Net
income
|
$ | 7,781 |
Three
Months Ended June 30, 2007
|
||||||||||||||||
Over-the-
Counter
|
Household
|
Personal
|
||||||||||||||
Healthcare
|
Cleaning
|
Care
|
Consolidated
|
|||||||||||||
Net
sales
|
$ | 42,426 | $ | 29,345 | $ | 6,270 | $ | 78,041 | ||||||||
Other
revenues
|
-- | 542 | 28 | 570 | ||||||||||||
Total
revenues
|
42,426 | 29,887 | 6,298 | 78,611 | ||||||||||||
Cost
of sales
|
15,386 | 18,393 | 3,543 | 37,322 | ||||||||||||
Gross
profit
|
27,040 | 11,494 | 2,755 | 41,289 | ||||||||||||
Advertising
and promotion
|
5,881 | 1,628 | 277 | 7,786 | ||||||||||||
Contribution
margin
|
$ | 21,159 | $ | 9,866 | $ | 2,478 | 33,503 | |||||||||
Other
operating expenses
|
10,397 | |||||||||||||||
Operating
income
|
23,106 | |||||||||||||||
Other
(income) expense
|
9,687 | |||||||||||||||
Provision
for income taxes
|
5,099 | |||||||||||||||
Net
income
|
$ | 8,320 |
Over-the-
Counter
|
Household
|
Personal
|
||||||||||||||
Healthcare
|
Cleaning
|
Care
|
Consolidated
|
|||||||||||||
Goodwill
|
$ | 233,615 | $ | 72,549 | $ | 2,751 | $ | 308,915 | ||||||||
Intangible
assets
|
||||||||||||||||
Indefinite
lived
|
374,070 | 170,893 | -- | 544,963 | ||||||||||||
Finite
lived
|
85,337 | 4 | 13,752 | 99,093 | ||||||||||||
459,407 | 170,897 | 13,752 | 644,056 | |||||||||||||
$ | 693,022 | $ | 243,446 | $ | 16,503 | $ | 952,971 |
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
|
Three
Month Period Ended June 30, 2008 compared to
the
|
|
Three
Month Period Ended June 30, 2007
|
2008
Revenues
|
%
|
2007
Revenues
|
%
|
Increase
(Decrease)
|
%
|
|||||||||||||||||||
OTC
Healthcare
|
$ | 39,246 | 53.3 | $ | 42,426 | 54.0 | $ | (3,180 | ) | (7.5 | ) | |||||||||||||
Household
Cleaning
|
29,022 | 39.5 | 29,887 | 38.0 | (865 | ) | (2.9 | ) | ||||||||||||||||
Personal
Care
|
5,266 | 7.2 | 6,298 | 8.0 | (1,032 | ) | (16.4 | ) | ||||||||||||||||
$ | 73,534 | 100.0 | $ | 78,611 | 100.0 | $ | (5,077 | ) | (6.5 | ) |
2008
Gross
Profit
|
%
|
2007
Gross
Profit
|
%
|
Increase
(Decrease)
|
%
|
|||||||||||||||||||
OTC
Healthcare
|
$ | 26,038 | 66.3 | $ | 27,040 | 63.7 | $ | (1,002 | ) | (3.7 | ) | |||||||||||||
Household
Cleaning
|
11,099 | 38.2 | 11,494 | 38.5 | (395 | ) | (3.4 | ) | ||||||||||||||||
Personal
Care
|
2,125 | 40.4 | 2,755 | 43.7 | (630 | ) | (22.9 | ) | ||||||||||||||||
$ | 39,262 | 53.4 | $ | 41,289 | 52.5 | $ | (2,027 | ) | (4.9 | ) |
2008
Contribution
Margin
|
%
|
2007
Contribution
Margin
|
%
|
Increase
(Decrease)
|
%
|
|||||||||||||||||||
OTC
Healthcare
|
$ | 21,001 | 53.5 | $ | 21,159 | 49.9 | $ | (158 | ) | (0.7 | ) | |||||||||||||
Household
Cleaning
|
9,029 | 31.1 | 9,866 | 33.0 | (837 | ) | (8.5 | ) | ||||||||||||||||
Personal
Care
|
1,913 | 36.3 | 2,478 | 39.3 | (565 | ) | (22.8 | ) | ||||||||||||||||
$ | 31,943 | 43.4 | $ | 33,503 | 42.6 | $ | (1,560 | ) | (4.7 | ) |
Three
Months Ended June 30
|
||||||||
(In
thousands)
|
2008
|
2007
|
||||||
Cash
provided by (used for):
|
||||||||
Operating
Activities
|
$ | 15,363 | $ | 8,408 | ||||
Investing
Activities
|
(61 | ) | (111 | ) | ||||
Financing
Activities
|
(15,010 | ) | (15,891 | ) |
·
|
$270.2
million of borrowings under the Tranche B Term Loan Facility,
and
|
·
|
$126.0
million of 9.25% Senior Subordinated Notes due
2012.
|
Notional
Amount
|
Interest
Rate
Cap
Percentage
|
Expiration
Date
|
|||||
(In
millions)
|
|||||||
$ | 50.0 | 3.25 | % |
May
31, 2006
|
|||
80.0 | 3.50 |
May
30, 2007
|
|||||
50.0 | 3.75 |
May
30, 2008
|
·
|
Have
a leverage ratio of less than 4.5 to 1.0 for the quarter ended June 30,
2008, decreasing
|
over time to 3.75 to 1.0 for the quarter ending September 30, 2010, and remaining level thereafter, | |
·
|
Have
an interest coverage ratio of greater than 2.75 to 1.0 for the quarter
ended June 30, 2008, increasing over time to 3.25 to 1.0 for the quarter
ending March 31, 2010, and remaining level thereafter,
and
|
·
|
Have
a fixed charge coverage ratio of greater than 1.5 to 1.0 for the quarter
ended June 30, 2008, and for each quarter thereafter until the quarter
ending March 31, 2011.
|
Payments
Due by Period
|
||||||||||||||||||||||||
(In
Millions)
|
Less than
|
1 to 3
|
4 to 5
|
After 5
|
||||||||||||||||||||
Contractual
Obligations
|
Total
|
1 Year
|
Years
|
Years
|
Years
|
|||||||||||||||||||
Long-term
debt
|
$ | 396.2 | $ | 3.6 | $ | 266.6 | $ | 126.0 | $ | -- | ||||||||||||||
Interest
on long-term debt
(1)
|
95.0 | 30.4 | 55.3 | 9.3 | -- | |||||||||||||||||||
Purchase
obligations
(2)
|
70.6 | 39.5 | 19.7 | 4.3 | 7.1 | |||||||||||||||||||
Operating
leases
|
3.7 | 0.7 | 1.2 | 1.2 | 0.6 | |||||||||||||||||||
Total
contractual cash obligations
|
$ | 565.5 | $ | 74.2 | $ | 342.8 | $ | 140.8 | $ | 7.7 |
(1)
|
Represents
the estimated interest obligations on the outstanding balances of the
Revolving Credit Facility, Tranche B Term Loan Facility and Senior
Subordinated Notes, together, assuming scheduled principal payments (based
on the terms of the loan agreements) were made and assuming a weighted
average interest rate of 7.64%. Estimated interest obligations
would be different under different assumptions regarding interest rates or
timing of principal payments. If interest rates on borrowings
with variable rates increased by 1%, interest expense would increase
approximately $2.7 million in the first year. However, given
the protection afforded by the interest rate swap agreement, the impact of
a one percentage point increase would be limited to $1.2
million.
|
(2)
|
Purchase
obligations consist of legally binding commitments for inventory
requirements and marketing and advertising expenditures to be utilized
during the normal course of our operations. Activity costs for molds
and equipment to be paid, based solely on a per unit basis without any
deadlines for final payment, have been excluded from the table because we
are unable to determine the time period over which such activity costs
will be paid.
|
Critical
Accounting Policies and Estimates
|
Over-the-
Counter
Healthcare
|
Household
Cleaning
|
Personal
Care
|
Consolidated
|
|||||||||||||
Goodwill
|
$ | 233,615 | $ | 72,549 | $ | 2,751 | $ | 308,915 | ||||||||
Intangible
assets
|
||||||||||||||||
Indefinite
lived
|
374,070 | 170,893 | -- | 544,963 | ||||||||||||
Finite
lived
|
85,337 | 4 | 13,752 | 99,093 | ||||||||||||
459,407 | 170,897 | 13,752 | 644,056 | |||||||||||||
$ | 693,022 | $ | 243,446 | $ | 16,503 | $ | 952,971 |
·
|
Brand
History
|
·
|
Market
Position
|
·
|
Recent
and Projected Sales Growth
|
·
|
History
of and Potential for Product
Extensions
|
·
|
Reviews
period-to-period sales and profitability by
brand,
|
·
|
Analyzes
industry trends and projects brand growth
rates,
|
·
|
Prepares
annual sales forecasts,
|
·
|
Evaluates
advertising effectiveness,
|
·
|
Analyzes
gross margins,
|
·
|
Reviews
contractual benefits or
limitations,
|
·
|
Monitors
competitors’ advertising spend and product
innovation,
|
·
|
Prepares
projections to measure brand viability over the estimated useful life of
the intangible asset, and
|
·
|
Considers
the regulatory environment, as well as industry
litigation.
|
·
|
Type
of instrument (i.e.: restricted shares vs. an option, warrant or
performance shares),
|
·
|
Strike
price of the instrument,
|
·
|
Market
price of the Company’s common stock on the date of
grant,
|
·
|
Discount
rates,
|
·
|
Duration
of the instrument, and
|
·
|
Volatility
of the Company’s common stock in the public
market.
|
·
|
Rules
and regulations promulgated by regulatory
agencies,
|
·
|
Sufficiency
of the evidence in support of our
position,
|
·
|
Anticipated
costs to support our position, and
|
·
|
Likelihood
of a positive outcome.
|
·
|
General
economic conditions affecting our products and their respective
markets,
|
·
|
Our
ability to increase organic growth via new product introductions or line
extensions,
|
·
|
The
high level of competition in our industry and
markets,
|
·
|
Our
ability to invest in research and
development,
|
·
|
Our
dependence on a limited number of customers for a large portion of our
sales,
|
·
|
Disruptions
in our distribution center,
|
·
|
Acquisitions
or other strategic transactions diverting managerial resources, or
incurrence of additional liabilities or integration problems associated
with such transactions,
|
·
|
Changing
consumer trends or pricing pressures which may cause us to lower our
prices,
|
·
|
Increases
in supplier prices,
|
·
|
Increases
in transportation fees and fuel
charges,
|
·
|
Changes
in our senior management team,
|
·
|
Our
ability to protect our intellectual property
rights,
|
·
|
Our
dependency on the reputation of our brand
names,
|
·
|
Shortages
of supply of sourced goods or interruptions in the manufacturing of our
products,
|
·
|
Our
level of debt, and ability to service our
debt,
|
·
|
Any
adverse judgment rendered in any pending litigation or
arbitration,
|
·
|
Our
ability to obtain additional financing,
and
|
·
|
The
restrictions imposed by our Senior Credit Facility and Indenture on our
operations.
|
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Notional
Amount
|
Interest
Rate
Cap
Percentage
|
Expiration
Date
|
|||||
(In
millions)
|
|||||||
$ | 50.0 | 3.25 | % |
May
31, 2006
|
|||
80.0 | 3.50 |
May
30, 2007
|
|||||
50.0 | 3.75 |
May
30, 2008
|
ITEM 4. | CONTROLS AND PROCEDURES |
OTHER
INFORMATION
|
ITEM
1.
|
LEGAL
PROCEEDINGS
|
ITEM 1A. | RISK FACTORS |
ITEM
2.
|
UNREGISTERED
SALES OF EQUITY SECURITIES AND USE OF
PROCEEDS
|
Company
Purchases of Equity Securities
|
||||||||||||||||
Period
|
(a)
Total
Number
of
Shares Purchased
|
(b)
Average
Price
Paid Per Share
|
(c)
Total
Number
of
Shares Purchased as Part of Publicly Announced Plans or
Programs
|
(d)
Maximum
Number
(or approximate dollar value) of Shares that May Yet Be
Purchased
Under
the Plans
or
Programs
|
||||||||||||
4/1/08
- 4/30/08
|
41,964 | $ | 0.24 | -- | -- | |||||||||||
5/1/08
- 5/31/08
|
-- | -- | -- | -- | ||||||||||||
6/1/08
- 6/30/08
|
-- | -- | -- | -- | ||||||||||||
Total
|
41,964 | $ | 0.24 | -- | -- |
ITEM
5.
|
OTHER
INFORMATION
|
None
|
ITEM 6. | EXHIBITS |
Prestige Brands Holdings,
Inc.
|
|||
Registrant
|
Date:
August 11, 2008
|
By:
|
/s/ PETER J. ANDERSON | |
Peter J. Anderson | |||
Chief Financial Officer | |||
(Principal Financial Officer and | |||
Duly Authorized Officer) |
10.1
|
Supply
Agreement, dated May 15, 2008, by and between Fitzpatrick Bros., Inc. and
The Spic and Span Company.*
|
31.1
|
Certification
of Principal Executive Officer of Prestige Brands Holdings, Inc. pursuant
to Rule 13a-14(a) of the Securities Exchange Act of 1934.
|
31.2
|
Certification
of Principal Financial Officer of Prestige Brands Holdings, Inc. pursuant
to Rule 13a-14(a) of the Securities Exchange Act of 1934.
|
32.1
|
Certification
of Principal Executive Officer of Prestige Brands Holdings, Inc. pursuant
to Rule 13a-14(b) and Section 1350 of Chapter 63 of Title 18 of the United
States Code.
|
32.2
|
Certification
of Principal Financial Officer of Prestige Brands Holdings, Inc. pursuant
to Rule 13a-14(b) and Section 1350 of Chapter 63 of Title 18 of the United
States Code.
|
*
|
Certain
confidential portions have been omitted pursuant to a confidential
treatment request separately filed with the Securities and Exchange
Commission.
|
SUPPLY
AGREEMENT
|
|
ARTICLE
4 - CONSTRUCTION OF THE FACILITY AND CAPITAL
RECOVERY
|
ARTICLE
12 - TERM AND TERMINATION
|
|
(a)
Should
any claim arise between the Parties hereto with respect to this Agreement
(the “Claim”), the Parties shall first attempt to resolve such Claim by
entering into good faith negotiations by or among their appropriate
employees or officers. The negotiations will commence as soon
as practicable after either Party has received notice from the other Party
of such Claim, but no later than ten (10) calendar days after such
receipt, and will terminate thirty (30) calendar days after such
commencement. During the negotiations, the Parties will not
have the right to any discovery.
|
|
(b)
Any
Claim which has not been resolved pursuant to good faith negotiations
contemplated above will be determined by arbitration. Any controversy,
dispute or Claim arising from or relating to this Agreement that cannot be
settled amicably shall be determined by arbitration in accordance with
Section 3 of this Article 14. The rules of the American
Arbitration Association (“AAA”) for arbitration of commercial disputes, as
such rules may be in effect at the time of the arbitration, shall apply
except where the subject matter of such rules are provided in this
Agreement and where such occurs this
|
Agreement shall be paramount and apply. The laws of the State of New York shall govern the arbitration of any Claim pursuant to Section 3 of this Article 14. | |
|
(c)
Prior
to the initiation of arbitration, the aggrieved Party shall give the other
Party a written notice, in accordance with this Agreement, describing the
Claim and the amount as to which it intends to initiate
action. A demand for arbitration may be initiated only if the
Parties have not amicably resolved the Claim as set forth in Section 3(a)
of this Article 14.
|
|
(d)
Where
the Claim is for an amount equal to at least Five Hundred Thousand Dollars
($500,000), the Claim shall be resolved by an oral hearing in the Borough
of Manhattan in the City of New York before a panel of three (3)
arbitrators. There shall be a stenographic record of the
proceedings held before the
arbitrators.
|
|
(e)
Where a
Claim exists requiring three (3) arbitrators, Supplier shall appoint one
(1) arbitrator and Buyer will appoint one (1) arbitrator within
thirty (30) days following service of the written demand for
arbitration. The two arbitrators shall select a third
arbitrator within forty-five (45) days after their
appointment. If the arbitrators selected by the Parties are
unable or fail to agree on a third arbitrator, the AAA shall, in its sole
discretion, designate the arbitrator. At least one (1) of the
arbitrators shall be an attorney actively engaged in the practice of law
for at least ten (10) years and familiar with procurement
agreements.
|
|
(f)
Where
the Claim requires three (3) arbitrators, the decision of the arbitrators
shall be made by majority vote and be accompanied by a reasoned
opinion.
|
|
(g)
Where
the Claim involves a controversy of Fifty Thousand Dollars ($50,000) or
less, Supplier and Buyer shall mutually select a single arbitrator within
fifteen (15) days after service of a demand for arbitration subject to the
following: (a) in the event an arbitrator cannot be mutually selected,
then the arbitrator shall be selected by the AAA; (b) the parties shall
submit their positions in writing on the Claim within thirty (30) days
after the appointment of the arbitrator; (c) the arbitrator shall issue a
decision that shall be reasoned and shall be served as a final order
within thirty (30) days after the written
submission.
|
|
(h)
Where
the Claim involves a controversy of more than Fifty Thousand Dollars
($50,000), but less than Five Hundred Thousand Dollars ($500,000),
Supplier and Buyer shall mutually select a single arbitrator within
fifteen (15) days after service of a demand for arbitration subject to the
following: (a) in the event an arbitrator cannot be mutually selected,
then the arbitrator shall be selected by the AAA within thirty (30) days;
(b) the parties shall submit their positions in writing and include a list
of witnesses within thirty (30) days; (c) there shall be an oral hearing
by phone or a hearing by mutual agreement including a video conference
hearing or an oral hearing attended by the Parties within thirty (30) days
of the written submissions; and (d) the arbitrator shall issue a decision
|
that shall be reasoned and that shall be served as a final order within thirty (30) days after the hearing. | |
|
(i)
Either
Supplier or Buyer, before or during arbitration, may apply to a court
having jurisdiction of the subject matter and the Parties for a temporary
restraining order or preliminary injunction where such emergency relief is
necessary to protect its interests prior to institution of, or pending
completion of, arbitration proceedings. Either Party may seek
such emergency relief, and not by way of limitation, in order to: (a)
compel the other Party to continue to perform under the terms of this
Agreement, both prior to and during any arbitration procedure in
accordance with this Agreement; (b) compel the other Party to arbitrate
any dispute as provided in this Section 3 of Article 14; or (c) to require
specific performance of any provision of this Agreement. Such
obligations may be specifically enforced in any court having jurisdiction
of the subject matter and the
Parties.
|
|
(j)
Unless
otherwise agreed by the parties, no arbitration shall be consolidated with
any other proceeding, nor shall it include parties other than Supplier and
Buyer except for other Persons substantially involved in a common question
of law or fact and whose presence is necessary to resolve the controversy
or dispute. Reasonable expenses of the arbitration shall be
borne equally by the Parties. Each Party shall bear the
expenses of its counsel and other
experts.
|
|
(k)
The
arbitrators shall have no power to consider or award consequential,
punitive or exemplary damages, whether statutory or under common
law.
|
|
(l)
The
decision of the arbitrator(s) shall be final and binding upon the Parties
and shall be accompanied by a reasoned opinion. Judgment upon
an arbitrator or arbitrators’ award may be entered in any competent
court. Unless otherwise agreed, the Parties shall continue to
perform under this Agreement before and/or during any arbitration
proceeding.
|
If to Supplier: |
Fitzpatrick Bros.,
Inc.
|
|
625 North Sacramento Boulevard | ||
Chicago, Illinois 60612 | ||
Fax: (773) 722-5133 | ||
Attention: William J. O’Connor | ||
If to Buyer: | The Spic and Span Company | |
90 North Broadway | ||
Irvington, New York 10533 | ||
Fax: (914) 524-6814 | ||
Attention: Senior Vice President - Operations | ||
With a copy to: | The Spic and Span Company | |
90 North Broadway | ||
Irvington, New York 10533 | ||
Fax: (914) 524-7488 | ||
Attention: Legal Department | ||
Comet ® |
Comet ® Powder |
Comet ® Lemon Powder |
Comet ® Orange Powder |
Comet ® Lavender Powder |
1.
|
I
have reviewed this Quarterly Report on Form 10-Q of Prestige Brands
Holdings, Inc.;
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
4.
|
The
registrant’s other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and
have:
|
(a) |
|
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
(b) |
|
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
(c) |
|
Evaluated
the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation;
and
|
(d) |
|
Disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant’s internal control over financial
reporting; and
|
5.
|
The
registrant’s other certifying officer(s) and I have disclosed, based on
our most recent evaluation of internal control over financial reporting,
to the registrant’s auditors and the audit committee of the registrant’s
board of directors (or persons performing the equivalent
functions):
|
(a) |
|
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information;
and
|
(b) |
|
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant’s internal control
over financial reporting.
|
Date:
August 11, 2008
|
/s/ Mark Pettie |
|
Mark
Pettie
|
||
Chief
Executive Officer
|
1.
|
I
have reviewed this Quarterly Report on Form 10-Q of Prestige Brands
Holdings, Inc.;
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
4.
|
The
registrant’s other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and
have:
|
(a) |
|
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
(b) |
|
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
(c) |
|
Evaluated
the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation;
and
|
(d) |
|
Disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant’s internal control over financial
reporting; and
|
5.
|
The
registrant’s other certifying officer(s) and I have disclosed, based on
our most recent evaluation of internal control over financial reporting,
to the registrant’s auditors and the audit committee of the registrant’s
board of directors (or persons performing the equivalent
functions):
|
(a) |
|
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information;
and
|
(b) |
|
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant’s internal control
over financial reporting.
|
Date:
August 11, 2008
|
/s/ Peter J. Anderson |
|
Peter
J. Anderson
|
||
Chief
Financial Officer
|
/s/
Mark
Pettie
|
||
Name: |
Mark
Pettie
|
|
Title: |
Chief
Executive Officer
|
|
Date: |
August
11, 2008
|
/s/
Peter J. Anderson
|
||
Name: |
Peter
J. Anderson
|
|
Title: |
Chief
Financial Officer
|
|
Date: |
August
11, 2008
|