☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Missouri | 43-1863181 | |||||||||||||
(State or other jurisdiction of incorporation or organization) | (I. R. S. Employer Identification No.) | |||||||||||||
6 Research Drive | (203) | 944-5500 | ||||||||||||
Shelton, | CT | 06484 | (Registrant’s telephone number, including area code) | |||||||||||
(Address of principal executive offices and zip code) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, par value $0.01 per share | EPC | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||||||||||
Non-accelerated filer | ☐ | (Do not check if a smaller reporting company) | Smaller reporting company | ☐ | ||||||||||
Emerging growth company | ☐ |
PART I. | FINANCIAL INFORMATION | |||||||
Item 1. | Financial Statements. | |||||||
Condensed Consolidated Statements of Earnings and Comprehensive Income for the three months ended December 31, 2021 and 2020. | ||||||||
Condensed Consolidated Balance Sheets as of December 31, 2021 and September 30, 2021. | ||||||||
Condensed Consolidated Statements of Cash Flows for the three months ended December 31, 2021 and 2020. | ||||||||
Condensed Consolidated Statements of Changes in Shareholders’ Equity for the three months ended December 31, 2021 and 2020. | ||||||||
Notes to Condensed Consolidated Financial Statements. | ||||||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. | |||||||
Item 3. | Quantitative and Qualitative Disclosures About Market Risk. | |||||||
Item 4. | Controls and Procedures. | |||||||
PART II. | OTHER INFORMATION | |||||||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. | |||||||
Item 6. | Exhibits. | |||||||
SIGNATURE |
Three Months Ended
December 31, |
|||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Net sales | $ | 463.3 | $ | 451.1 | |||||||||||||||||||
Cost of products sold | 273.4 | 257.8 | |||||||||||||||||||||
Gross profit | 189.9 | 193.3 | |||||||||||||||||||||
Selling, general and administrative expense | 96.9 | 93.1 | |||||||||||||||||||||
Advertising and sales promotion expense | 46.2 | 41.2 | |||||||||||||||||||||
Research and development expense | 12.8 | 13.7 | |||||||||||||||||||||
Restructuring charges | 2.2 | 3.7 | |||||||||||||||||||||
Operating income | 31.8 | 41.6 | |||||||||||||||||||||
Interest expense associated with debt | 17.3 | 17.4 | |||||||||||||||||||||
Other income, net | (1.7) | (1.0) | |||||||||||||||||||||
Earnings before income taxes | 16.2 | 25.2 | |||||||||||||||||||||
Income tax provision | 5.0 | 7.5 | |||||||||||||||||||||
Net earnings | $ | 11.2 | $ | 17.7 | |||||||||||||||||||
Earnings per share: | |||||||||||||||||||||||
Basic net earnings per share | $ | 0.21 | $ | 0.33 | |||||||||||||||||||
Diluted net earnings per share | $ | 0.20 | $ | 0.32 | |||||||||||||||||||
Statements of Comprehensive Income: | |||||||||||||||||||||||
Net earnings | $ | 11.2 | $ | 17.7 | |||||||||||||||||||
Other comprehensive (loss) income, net of tax | |||||||||||||||||||||||
Foreign currency translation adjustments | (6.9) | 33.7 | |||||||||||||||||||||
Pension and postretirement activity, net of tax of $0.0 and $(0.8) | — | (2.0) | |||||||||||||||||||||
Deferred gain (loss) on hedging activity, net of tax of $0.1 and $(0.8)
|
0.4 | (1.8) | |||||||||||||||||||||
Total other comprehensive (loss) income, net of tax | (6.5) | 29.9 | |||||||||||||||||||||
Total comprehensive income | $ | 4.7 | $ | 47.6 |
December 31,
2021 |
September 30,
2021 |
||||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 239.8 | $ | 479.2 | |||||||
Trade receivables, less allowance for doubtful accounts of $7.0 and $6.9 | 154.4 | 150.7 | |||||||||
Inventories | 407.5 | 345.7 | |||||||||
Other current assets | 165.2 | 160.1 | |||||||||
Total current assets | 966.9 | 1,135.7 | |||||||||
Property, plant and equipment, net | 356.6 | 362.6 | |||||||||
Goodwill | 1,342.7 | 1,162.8 | |||||||||
Other intangible assets, net | 1,035.0 | 906.4 | |||||||||
Other assets | 105.9 | 107.1 | |||||||||
Total assets | $ | 3,807.1 | $ | 3,674.6 | |||||||
Liabilities and Shareholders’ Equity | |||||||||||
Current liabilities | |||||||||||
Notes payable | $ | 27.4 | $ | 26.5 | |||||||
Accounts payable | 217.8 | 209.5 | |||||||||
Other current liabilities | 238.7 | 300.8 | |||||||||
Total current liabilities | 483.9 | 536.8 | |||||||||
Long-term debt | 1,432.7 | 1,234.2 | |||||||||
Deferred income tax liabilities | 150.1 | 129.0 | |||||||||
Other liabilities | 188.1 | 190.3 | |||||||||
Total liabilities | 2,254.8 | 2,090.3 | |||||||||
Shareholders’ equity | |||||||||||
Preferred shares, $0.01 par value, 10,000,000 authorized; none issued or outstanding | — | — | |||||||||
Common shares, $0.01 par value, 300,000,000 authorized; 65,251,989 issued; 54,194,831 and 54,369,714 outstanding | 0.7 | 0.7 | |||||||||
Additional paid-in capital | 1,593.7 | 1,631.1 | |||||||||
Retained earnings | 868.5 | 865.7 | |||||||||
Common shares in treasury at cost, 11,057,158 and 10,882,275 | (767.2) | (776.3) | |||||||||
Accumulated other comprehensive loss | (143.4) | (136.9) | |||||||||
Total shareholders’ equity | 1,552.3 | 1,584.3 | |||||||||
Total liabilities and shareholders’ equity | $ | 3,807.1 | $ | 3,674.6 |
Three Months Ended
December 31, |
|||||||||||
2021 | 2020 | ||||||||||
Cash Flow from Operating Activities | |||||||||||
Net earnings | $ | 11.2 | $ | 17.7 | |||||||
Depreciation and amortization | 21.4 | 22.2 | |||||||||
Share-based compensation expense | 5.5 | 5.3 | |||||||||
Loss on sale of assets | 0.3 | 0.2 | |||||||||
Deferred compensation payments | (0.5) | (0.2) | |||||||||
Deferred income taxes | (0.1) | — | |||||||||
Other, net | 1.7 | 1.0 | |||||||||
Changes in operating assets and liabilities | (118.5) | (128.7) | |||||||||
Net cash used by operating activities | $ | (79.0) | $ | (82.5) | |||||||
Cash Flow from Investing Activities | |||||||||||
Capital expenditures | (9.4) | (10.2) | |||||||||
Acquisition of Billie, net of cash acquired | (308.8) | — | |||||||||
Proceeds from sale of Infant and Pet Care business | 5.0 | 7.5 | |||||||||
Acquisition of Cremo | — | (0.3) | |||||||||
Collection of deferred purchase price on accounts receivable sold | 0.8 | 1.5 | |||||||||
Other, net | (0.3) | (0.8) | |||||||||
Net cash used by investing activities | $ | (312.7) | $ | (2.3) | |||||||
Cash Flow from Financing Activities | |||||||||||
Cash proceeds from debt with original maturities greater than 90 days | 198.0 | — | |||||||||
Net increase in debt with original maturities of 90 days or less | 1.4 | 2.5 | |||||||||
Dividends to common shareholders | (8.5) | — | |||||||||
Repurchase of shares | (24.5) | (9.2) | |||||||||
Net financing (outflow) inflow from the Accounts Receivable Facility | (1.6) | 4.2 | |||||||||
Employee shares withheld for taxes | (9.7) | (3.0) | |||||||||
Other, net | 0.4 | — | |||||||||
Net cash from (used by) financing activities | $ | 155.5 | $ | (5.5) | |||||||
Effect of exchange rate changes on cash | (3.2) | 6.4 | |||||||||
Net decrease in cash and cash equivalents | (239.4) | (83.9) | |||||||||
Cash and cash equivalents, beginning of period | 479.2 | 364.7 | |||||||||
Cash and cash equivalents, end of period | $ | 239.8 | $ | 280.8 |
Common Shares | Treasury Shares | ||||||||||||||||||||||||||||||||||||||||||||||
Number | Par Value | Number | Amount | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | 65.2 | $ | 0.7 | (10.9) | $ | (776.3) | $ | 1,631.1 | $ | 865.7 | $ | (136.9) | $ | 1,584.3 | |||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | — | 11.2 | — | 11.2 | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | (6.9) | (6.9) | |||||||||||||||||||||||||||||||||||||||
Deferred gain on hedging activity | — | — | — | — | — | — | 0.4 | 0.4 | |||||||||||||||||||||||||||||||||||||||
Dividends declared to common shareholders | — | — | — | — | — | (8.4) | — | (8.4) | |||||||||||||||||||||||||||||||||||||||
Repurchase of shares | — | — | (0.5) | (24.5) | — | — | — | (24.5) | |||||||||||||||||||||||||||||||||||||||
Activity under share plans | — | — | 0.3 | 33.6 | (37.4) | — | — | (3.8) | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 65.2 | $ | 0.7 | (11.1) | $ | (767.2) | $ | 1,593.7 | $ | 868.5 | $ | (143.4) | $ | 1,552.3 |
Common Shares | Treasury Shares | ||||||||||||||||||||||||||||||||||||||||||||||
Number | Par Value | Number | Amount | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | 65.2 | $ | 0.7 | (10.9) | $ | (790.4) | $ | 1,631.8 | $ | 782.4 | $ | (191.6) | $ | 1,432.9 | |||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | — | 17.7 | — | 17.7 | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | 33.7 | 33.7 | |||||||||||||||||||||||||||||||||||||||
Pension and postretirement activity | — | — | — | — | — | — | (2.0) | (2.0) | |||||||||||||||||||||||||||||||||||||||
Deferred loss on hedging activity | — | — | — | — | — | — | (1.8) | (1.8) | |||||||||||||||||||||||||||||||||||||||
Dividends declared to common shareholders | — | — | — | — | — | (8.5) | — | (8.5) | |||||||||||||||||||||||||||||||||||||||
Repurchase of shares | — | — | (0.3) | (9.2) | — | — | — | (9.2) | |||||||||||||||||||||||||||||||||||||||
Activity under share plans | — | — | 0.2 | 15.4 | (13.0) | — | — | 2.4 | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 65.2 | $ | 0.7 | $ | (11.0) | $ | (784.2) | $ | 1,618.8 | $ | 791.6 | $ | (161.7) | $ | 1,465.2 |
Current assets | 16.9 | ||||
Goodwill | 181.0 | ||||
Intangible assets | 136.0 | ||||
Other assets, including property, plant and equipment, net | 3.2 | ||||
Current liabilities | (6.8) | ||||
Deferred tax liabilities | (21.5) | ||||
$ | 308.8 |
Three Months Ended
December 31, |
|||||||||||
2021 | 2020 | ||||||||||
Proforma net sales | $ | 473.3 | $ | 467.3 | |||||||
Proforma net earnings | 14.8 | 10.2 |
Three Months Ended December 31, 2021 | |||||
Restructuring Charges | |||||
Severance and related benefit costs | 1.3 | ||||
Consulting, project implementation and management, and other exit costs | 0.9 | ||||
Total restructuring | $ | 2.2 |
Three Months Ended December 31, 2020 | |||||||||||||||||||||||||||||
Project Fuel | |||||||||||||||||||||||||||||
Severance and related benefit costs | $ | 2.3 | |||||||||||||||||||||||||||
Asset impairment and accelerated depreciation | 0.1 | ||||||||||||||||||||||||||||
Consulting, project implementation and management, and other exit costs | 2.0 | ||||||||||||||||||||||||||||
Total restructuring | $ | 4.4 |
Utilized | |||||||||||||||||||||||||||||||||||
October 1, 2021 |
Charge to
Income |
Cash | Non-Cash |
December 31,
2021 |
|||||||||||||||||||||||||||||||
Restructuring | |||||||||||||||||||||||||||||||||||
Severance and related benefit costs | $ | 1.9 | $ | 1.3 | $ | (2.2) | $ | — | $ | 1.0 | |||||||||||||||||||||||||
Consulting, project implementation and management, and other exit costs | 3.6 | 0.9 | (3.0) | — | 1.5 | ||||||||||||||||||||||||||||||
Total restructuring | $ | 5.5 | $ | 2.2 | $ | (5.2) | $ | — | $ | 2.5 |
Three Months Ended
December 31, |
|||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Basic weighted-average shares outstanding | 54.4 | 54.4 | |||||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||
RSE and PRSE awards | 0.6 | 0.4 | |||||||||||||||||||||
Total dilutive securities | 0.6 | 0.4 | |||||||||||||||||||||
Diluted weighted-average shares outstanding | 55.0 | 54.8 |
Wet
Shave |
Sun and Skin
Care |
Feminine
Care |
Total | ||||||||||||||||||||
Gross balance at October 1, 2021 | $ | 967.5 | $ | 357.6 | $ | 208.7 | $ | 1,533.8 | |||||||||||||||
Accumulated goodwill impairment | (369.0) | (2.0) | — | (371.0) | |||||||||||||||||||
Net balance at October 1, 2021 | $ | 598.5 | $ | 355.6 | $ | 208.7 | $ | 1,162.8 | |||||||||||||||
Changes in the three-month period ended December 31, 2021 | |||||||||||||||||||||||
Billie acquisition | 181.0 | — | — | 181.0 | |||||||||||||||||||
Cumulative translation adjustment | (1.4) | 0.1 | 0.2 | (1.1) | |||||||||||||||||||
Gross balance at December 31, 2021 | $ | 1,147.1 | $ | 357.7 | $ | 208.9 | $ | 1,713.7 | |||||||||||||||
Accumulated goodwill impairment | (369.0) | (2.0) | — | (371.0) | |||||||||||||||||||
Net balance at December 31, 2021 | $ | 778.1 | $ | 355.7 | $ | 208.9 | $ | 1,342.7 |
December 31, 2021 | September 30, 2021 | ||||||||||||||||||||||||||||||||||
Carrying
Amount |
Accumulated
Amortization |
Net |
Carrying Amount |
Accumulated
Amortization |
Net | ||||||||||||||||||||||||||||||
Indefinite lived | |||||||||||||||||||||||||||||||||||
Trade names and brands | $ | 599.4 | $ | — | $ | 599.4 | $ | 600.8 | $ | — | $ | 600.8 | |||||||||||||||||||||||
Amortizable | |||||||||||||||||||||||||||||||||||
Trade names and brands | $ | 339.9 | $ | 61.1 | $ | 278.8 | $ | 256.2 | $ | 57.7 | $ | 198.5 | |||||||||||||||||||||||
Technology and patents | 78.9 | 75.7 | 3.2 | 79.1 | 75.8 | 3.3 | |||||||||||||||||||||||||||||
Customer related and other | 273.5 | 119.9 | 153.6 | 221.2 | 117.4 | 103.8 | |||||||||||||||||||||||||||||
Total amortizable intangible assets | $ | 692.3 | $ | 256.7 | $ | 435.6 | $ | 556.5 | $ | 250.9 | $ | 305.6 |
December 31,
2021 |
September 30,
2021 |
||||||||||
Inventories | |||||||||||
Raw materials and supplies | $ | 65.2 | $ | 61.3 | |||||||
Work in process | 85.7 | 83.4 | |||||||||
Finished products | 256.6 | 201.0 | |||||||||
Total inventories | $ | 407.5 | $ | 345.7 | |||||||
Other Current Assets | |||||||||||
Miscellaneous receivables | $ | 31.2 | $ | 30.3 | |||||||
Inventory returns receivable | 0.7 | 0.9 | |||||||||
Prepaid expenses | 77.8 | 67.3 | |||||||||
Value added tax collectible from customers | 17.2 | 19.6 | |||||||||
Income taxes receivable | 30.1 | 29.1 | |||||||||
Other | 8.2 | 12.9 | |||||||||
Total other current assets | $ | 165.2 | $ | 160.1 | |||||||
Property, Plant and Equipment | |||||||||||
Land | $ | 19.0 | $ | 19.2 | |||||||
Buildings | 144.5 | 144.5 | |||||||||
Machinery and equipment | 1,050.6 | 1,049.0 | |||||||||
Capitalized software costs | 56.7 | 57.0 | |||||||||
Construction in progress | 48.1 | 44.0 | |||||||||
Total gross property, plant and equipment | 1,318.9 | 1,313.7 | |||||||||
Accumulated depreciation and amortization | (962.3) | (951.1) | |||||||||
Total property, plant and equipment, net | $ | 356.6 | $ | 362.6 | |||||||
Other Current Liabilities | |||||||||||
Accrued advertising, sales promotion and allowances | $ | 36.4 | $ | 33.8 | |||||||
Accrued trade allowances | 28.4 | 34.0 | |||||||||
Accrued salaries, vacations and incentive compensation | 27.9 | 66.4 | |||||||||
Income taxes payable | 7.2 | 9.8 | |||||||||
Returns reserve | 41.9 | 52.7 | |||||||||
Restructuring reserve | 2.5 | 5.5 | |||||||||
Value added tax payable | 5.8 | 4.6 | |||||||||
Deferred compensation | 6.5 | 5.9 | |||||||||
Short term lease obligation | 11.6 | 11.0 | |||||||||
Customer advance payments | 2.3 | 0.6 | |||||||||
Dividends payable | 8.2 | 8.2 | |||||||||
Other | 60.0 | 68.3 | |||||||||
Total other current liabilities | $ | 238.7 | $ | 300.8 | |||||||
Other Liabilities | |||||||||||
Pensions and other retirement benefits | $ | 55.0 | $ | 55.4 | |||||||
Deferred compensation | 22.4 | 22.7 | |||||||||
Long term lease obligation | 44.9 | 46.9 | |||||||||
Other non-current liabilities | 65.8 | 65.3 | |||||||||
Total other liabilities | $ | 188.1 | $ | 190.3 |
December 31,
2021 |
September 30,
2021 |
|||||||||||||
Assets | Classification | |||||||||||||
Right of use assets | Other assets | $ | 56.0 | $ | 57.7 | |||||||||
Liabilities | ||||||||||||||
Current lease liabilities | Other current liabilities | $ | 11.6 | $ | 11.0 | |||||||||
Long-term lease liabilities | Other liabilities | 44.9 | 46.9 | |||||||||||
Total lease liabilities | $ | 56.5 | $ | 57.9 | ||||||||||
Other information | ||||||||||||||
Weighted-average remaining lease term (years) | 10 | 10 | ||||||||||||
Weighted-average incremental borrowing rate | 6.4 | % | 6.3 | % |
Three Months Ended December 31, 2021 | Three Months Ended December 31, 2020 | ||||||||||
Statement of Earnings | |||||||||||
Lease cost (1)
|
$ | 3.5 | $ | 3.9 | |||||||
Other information | |||||||||||
Leased assets obtained in exchange for new lease liabilities | $ | 0.5 | $ | 3.9 | |||||||
Cash paid for amounts included in the measurement of lease liabilities | $ | 3.6 | $ | 4.0 |
Lease liability repayments | December 31, 2021 | ||||
Remainder of fiscal 2022 | $ | 10.5 | |||
2023 | 11.1 | ||||
2024 | 9.0 | ||||
2025 | 8.1 | ||||
2026 | 6.7 | ||||
2027 and thereafter | 37.1 | ||||
Total future minimum lease commitments | 82.5 | ||||
Less: Imputed interest | (26.0) | ||||
Present value of lease liabilities | $ | 56.5 |
December 31,
2021 |
September 30,
2021 |
||||||||||
Senior notes, fixed interest rate of 5.500%, due 2028 | $ | 750.0 | $ | 750.0 | |||||||
Senior notes, fixed interest rate of 4.125%, due 2029 | 500.0 | 500.0 | |||||||||
U.S. revolving credit facility due 2025 | 198.0 | — | |||||||||
Total long-term debt, including current maturities | 1,448.0 | 1,250.0 | |||||||||
Less unamortized debt issuance costs and discount (1)
|
15.3 | 15.8 | |||||||||
Total long-term debt | $ | 1,432.7 | $ | 1,234.2 |
Three Months Ended
December 31, |
|||||||||||
2021 | 2020 | ||||||||||
Service cost | $ | 1.0 | $ | 1.1 | |||||||
Interest cost | 2.6 | 2.5 | |||||||||
Expected return on plan assets | (5.3) | (5.6) | |||||||||
Recognized net actuarial loss | 1.5 | 2.3 | |||||||||
Net periodic cost | $ | (0.2) | $ | 0.3 |
Foreign
Currency Translation Adjustments |
Pension and
Post-retirement Activity |
Hedging
Activity |
Total | ||||||||||||||||||||
Balance at October 1, 2021 | $ | (41.8) | $ | (97.3) | $ | 2.2 | $ | (136.9) | |||||||||||||||
OCI before reclassifications (1)
|
(6.9) | (1.1) | 1.2 | (6.8) | |||||||||||||||||||
Reclassifications to earnings | — | 1.1 | (0.8) | 0.3 | |||||||||||||||||||
Balance at December 31, 2021 | $ | (48.7) | $ | (97.3) | $ | 2.6 | $ | (143.4) |
Foreign
Currency Translation Adjustments |
Pension and
Post-retirement Activity |
Hedging
Activity |
Total | ||||||||||||||||||||
Balance at October 1, 2020 | $ | (47.4) | $ | (142.1) | $ | (2.1) | $ | (191.6) | |||||||||||||||
OCI before reclassifications (1)
|
33.7 | (3.7) | (2.8) | 27.2 | |||||||||||||||||||
Reclassifications to earnings | — | 1.7 | 1.0 | 2.7 | |||||||||||||||||||
Balance at December 31, 2020 | $ | (13.7) | $ | (144.1) | $ | (3.9) | $ | (161.7) |
Three Months Ended
December 31, |
Affected Line Item in the
Condensed Consolidated Statements of Earnings |
|||||||||||||||||||
Details of AOCI Components | 2021 | 2020 | ||||||||||||||||||
Gain / (Loss) on cash flow hedges | ||||||||||||||||||||
Foreign exchange contracts | $ | 1.3 | $ | (1.4) | Other income, net | |||||||||||||||
1.3 | (1.4) | |||||||||||||||||||
0.5 | (0.4) | Income tax provision | ||||||||||||||||||
0.8 | (1.0) | |||||||||||||||||||
Amortization of defined benefit pension and postretirement items | ||||||||||||||||||||
Actuarial losses | $ | (1.5) | $ | (2.3) | (1) | |||||||||||||||
(1.5) | (2.3) | |||||||||||||||||||
(0.4) | (0.6) | Income tax provision | ||||||||||||||||||
(1.1) | (1.7) | |||||||||||||||||||
Total reclassifications for the period | $ | (0.3) | $ | (2.7) |
Fair Value of Asset (Liability) (1)
|
|||||||||||
December 31,
2021 |
September 30,
2021 |
||||||||||
Derivatives designated as cash flow hedging relationships: | |||||||||||
Foreign currency contracts | $ | 3.8 | $ | 3.3 | |||||||
Derivatives not designated as cash flow hedging relationships: | |||||||||||
Foreign currency contracts | $ | 0.7 | $ | 0.5 |
Three Months Ended
December 31, |
|||||||||||
2021 | 2020 | ||||||||||
Derivatives designated as cash flow hedging relationships: | |||||||||||
Foreign currency contracts | |||||||||||
Gain (loss) recognized in OCI (1)
|
$ | 1.8 | $ | (4.0) | |||||||
Gain (loss) reclassified from AOCI into income (1) (2)
|
1.3 | (1.4) | |||||||||
Derivatives not designated as cash flow hedging relationships: | |||||||||||
Foreign currency contracts | |||||||||||
Gain (loss) recognized in income (2)
|
$ | 1.1 | $ | (1.1) |
At December 31, 2021 | At September 30, 2021 | ||||||||||||||||||||||
Assets (1)
|
Liabilities (2)
|
Assets (1)
|
Liabilities (2)
|
||||||||||||||||||||
Foreign currency contracts | |||||||||||||||||||||||
Gross amounts of recognized assets (liabilities) | $ | 4.7 | $ | (0.1) | $ | 3.9 | $ | (0.2) | |||||||||||||||
Gross amounts offset in the balance sheet | (0.1) | — | (0.1) | 0.1 | |||||||||||||||||||
Net amounts of assets (liabilities) presented in the balance sheet | $ | 4.6 | $ | (0.1) | $ | 3.8 | $ | (0.1) |
December 31,
2021 |
September 30,
2021 |
||||||||||
Liabilities at estimated fair value: | |||||||||||
Deferred compensation | $ | (28.9) | $ | (28.4) | |||||||
Derivatives - foreign currency contracts | 4.5 | 3.7 | |||||||||
Net liabilities at estimated fair value | $ | (24.4) | $ | (24.7) |
Three Months Ended
December 31, |
|||||||||||
2021 | 2020 | ||||||||||
Net Sales | |||||||||||
Wet Shave | $ | 286.1 | $ | 279.1 | |||||||
Sun and Skin Care | 104.8 | 103.0 | |||||||||
Feminine Care | 72.4 | 69.0 | |||||||||
Total net sales | $ | 463.3 | $ | 451.1 | |||||||
Segment Profit | |||||||||||
Wet Shave | $ | 51.5 | $ | 52.6 | |||||||
Sun and Skin Care | 3.7 | 5.2 | |||||||||
Feminine Care | 8.4 | 8.8 | |||||||||
Total segment profit | 63.6 | 66.6 | |||||||||
General corporate and other expenses | (10.8) | (12.1) | |||||||||
Restructuring and related costs | (2.2) | (4.4) | |||||||||
Acquisition and integration costs (1)
|
(6.0) | (3.0) | |||||||||
VAT settlement costs (2)
|
(3.4) | — | |||||||||
Sun Care reformulation costs (3)
|
(3.3) | — | |||||||||
Amortization of intangibles | (6.1) | (5.5) | |||||||||
Interest and other expense, net | (15.6) | (16.4) | |||||||||
Total earnings before income taxes | $ | 16.2 | $ | 25.2 |
Three Months Ended
December 31, |
|||||||||||
2021 | 2020 | ||||||||||
Net Sales to Customers | |||||||||||
United States | $ | 262.5 | $ | 250.8 | |||||||
International | 200.8 | 200.3 | |||||||||
Total net sales | $ | 463.3 | $ | 451.1 |
Three Months Ended
December 31, |
|||||||||||
2021 | 2020 | ||||||||||
Razors and blades | $ | 255.7 | $ | 246.3 | |||||||
Tampons, pads, and liners | 72.4 | 69.0 | |||||||||
Sun care products | 40.2 | 28.8 | |||||||||
Grooming products | 46.3 | 43.1 | |||||||||
Wipes and other skin care | 18.3 | 31.1 | |||||||||
Shaving gels and creams | 30.4 | 32.8 | |||||||||
Total net sales | $ | 463.3 | $ | 451.1 |
Three Months Ended December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||
Gross Profit | SG&A | Operating Income |
EBIT(1)
|
Income taxes | Net Earnings | Diluted EPS | |||||||||||||||||||||||||||||||||||
GAAP — Reported | $ | 189.9 | $ | 96.9 | $ | 31.8 | $ | 16.2 | $ | 5.0 | $ | 11.2 | $ | 0.20 | |||||||||||||||||||||||||||
Restructuring and related costs | — | — | 2.2 | 2.2 | 0.5 | 1.7 | 0.03 | ||||||||||||||||||||||||||||||||||
Acquisition and integration costs | 0.3 | 5.7 | 6.0 | 6.0 | 0.3 | 5.7 | 0.11 | ||||||||||||||||||||||||||||||||||
Value-added tax settlement costs | — | 3.4 | 3.4 | 3.4 | 1.1 | 2.3 | 0.04 | ||||||||||||||||||||||||||||||||||
Sun Care reformulation costs | 3.3 | — | 3.3 | 3.3 | 1.0 | 2.3 | 0.04 | ||||||||||||||||||||||||||||||||||
Total Adjusted Non-GAAP | $ | 193.5 | $ | 87.8 | $ | 46.7 | $ | 31.1 | $ | 7.9 | $ | 23.2 | $ | 0.42 | |||||||||||||||||||||||||||
GAAP as a percent of net sales | 41.0 | % | 20.9 | % | 6.9 | % | GAAP effective tax rate | 30.9 | % | ||||||||||||||||||||||||||||||||
Adjusted as a percent of net sales | 41.8 | % | 19.0 | % | 10.1 | % | Adjusted effective tax rate | 25.3 | % |
Three Months Ended December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||
Gross Profit | SG&A | Operating Income |
EBIT(1)
|
Income taxes | Net Earnings | Diluted EPS | |||||||||||||||||||||||||||||||||||
GAAP — Reported | $ | 193.3 | $ | 93.1 | $ | 41.6 | $ | 25.2 | $ | 7.5 | $ | 17.7 | $ | 0.32 | |||||||||||||||||||||||||||
Restructuring and related costs | 0.1 | 0.6 | 4.4 | 4.4 | 1.1 | 3.3 | 0.07 | ||||||||||||||||||||||||||||||||||
Acquisition and integration costs | 1.3 | 1.7 | 3.0 | 3.0 | 0.7 | 2.3 | 0.04 | ||||||||||||||||||||||||||||||||||
Total Adjusted Non-GAAP | $ | 194.7 | $ | 90.8 | $ | 49.0 | $ | 32.6 | $ | 9.3 | $ | 23.3 | $ | 0.43 | |||||||||||||||||||||||||||
GAAP as a percent of net sales | 42.9 | % | 20.6 | % | 9.2 | % | GAAP effective tax rate | 29.7 | % | ||||||||||||||||||||||||||||||||
Adjusted as a percent of net sales | 43.2 | % | 20.1 | % | 10.9 | % | Adjusted effective tax rate | 28.4 | % |
Net Sales - Total Company | |||||||||||
Period Ended December 31, 2021 | |||||||||||
Q1 | % Chg | ||||||||||
Net sales - fiscal 2021 | $ | 451.1 | |||||||||
Organic | 11.3 | 2.5 | % | ||||||||
Impact of Billie acquisition, net | 6.8 | 1.5 | % | ||||||||
Impact of currency | (5.9) | (1.3) | % | ||||||||
Net sales - fiscal 2022 | $ | 463.3 | 2.7 | % |
Three Months Ended December 31, 2021 | Three Months Ended December 31, 2020 | ||||||||||||||||||||||||||||||||||
Reported |
Adjustments (1)
|
Adjusted
(Non-GAAP) |
Reported |
Adjustments (1)
|
Adjusted
(Non-GAAP) |
||||||||||||||||||||||||||||||
Earnings before income taxes
|
$ | 16.2 | $ | 14.9 | $ | 31.1 | $ | 25.2 | $ | 7.4 | $ | 32.6 | |||||||||||||||||||||||
Income tax provision | 5.0 | 2.9 | 7.9 | 7.5 | 1.8 | 9.3 | |||||||||||||||||||||||||||||
Net earnings
|
$ | 11.2 | $ | 12.0 | $ | 23.2 | $ | 17.7 | $ | 5.6 | $ | 23.3 | |||||||||||||||||||||||
Effective tax rate | 30.9 | % | 29.7 | % | |||||||||||||||||||||||||||||||
Adjusted effective tax rate | 25.3 | % | 28.4 | % |
Net Sales - Wet Shave | |||||||||||
Quarter Ended December 31, 2021 | |||||||||||
Q1 | % Chg | ||||||||||
Net sales - fiscal 2021 | $ | 279.1 | |||||||||
Organic | 6.0 | 2.1 | % | ||||||||
Impact of Billie acquisition, net | 6.8 | 2.4 | % | ||||||||
Impact of currency | (5.8) | (2.0) | % | ||||||||
Net sales - fiscal 2022 | $ | 286.1 | 2.5 | % |
Segment Profit - Wet Shave | |||||||||||
Quarter Ended December 31, 2021 | |||||||||||
Q1 | % Chg | ||||||||||
Segment profit - fiscal 2021 | $ | 52.6 | |||||||||
Organic | 3.2 | 6.1 | % | ||||||||
Impact of Billie acquisition, net | (2.4) | (4.6) | % | ||||||||
Impact of currency | (1.9) | (3.6) | % | ||||||||
Segment profit - fiscal 2022 | $ | 51.5 | (2.1) | % |
Net Sales - Sun and Skin Care | |||||||||||
Quarter Ended December 31, 2021 | |||||||||||
Q1 | % Chg | ||||||||||
Net sales - fiscal 2021 | $ | 103.0 | |||||||||
Organic | 2.0 | 1.9 | % | ||||||||
Impact of currency | (0.2) | (0.2) | % | ||||||||
Net sales - fiscal 2022 | $ | 104.8 | 1.7 | % |
Segment Profit - Sun and Skin Care | |||||||||||
Quarter Ended December 31, 2021 | |||||||||||
Q1 | % Chg | ||||||||||
Segment profit - fiscal 2021 | $ | 5.2 | |||||||||
Organic | (1.3) | (25.0) | % | ||||||||
Impact of currency | (0.2) | (3.8) | % | ||||||||
Segment profit -fiscal 2022 | $ | 3.7 | (28.8) | % |
Net Sales - Feminine Care | |||||||||||
Quarter Ended December 31, 2021 | |||||||||||
Q1 | % Chg | ||||||||||
Net sales - fiscal 2021 | $ | 69.0 | |||||||||
Organic | 3.3 | 4.8 | % | ||||||||
Impact of currency | 0.1 | 0.1 | % | ||||||||
Net sales - fiscal 2022 | $ | 72.4 | 4.9 | % |
Segment Profit - Feminine Care | |||||||||||
Quarter Ended December 31, 2021 | |||||||||||
Q1 | %Chg | ||||||||||
Segment profit -fiscal 2021 | $ | 8.8 | |||||||||
Organic | (0.5) | (5.6) | % | ||||||||
Impact of currency | 0.1 | 1.1 | % | ||||||||
Segment profit - fiscal 2022 | $ | 8.4 | (4.5) | % |
Quarter Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
Corporate expenses | $ | 10.8 | $ | 12.1 | |||||||
Restructuring and related costs | 2.2 | 4.4 | |||||||||
Acquisition and integration costs | 6.0 | 3.0 | |||||||||
Value-added tax settlement costs | 3.4 | — | |||||||||
Sun Care reformulation costs | 3.3 | — | |||||||||
General corporate and other expenses | $ | 25.7 | $ | 19.5 | |||||||
% of net sales | 5.5 | % | 4.3 | % |
Three Months Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
Net cash (used by) from: | |||||||||||
Operating activities | $ | (79.0) | $ | (82.5) | |||||||
Investing activities | (312.7) | (2.3) | |||||||||
Financing activities | 155.5 | (5.5) | |||||||||
Effect of exchange rate changes on cash | (3.2) | 6.4 | |||||||||
Net decrease in cash and cash equivalents | $ | (239.4) | $ | (83.9) |
Period |
Total Number of
Shares Purchased (1) (2)
|
Average Price Paid
per share (3)
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2)
|
Maximum Number that May Yet Be Purchased Under the Plans or Programs | ||||||||||||||||||||||
October 1 to 31, 2021 | — | $ | — | — | 9,750,000 | |||||||||||||||||||||
November 1 to 30, 2021 | 473,022 | 43.40 | 249,000 | 9,501,000 | ||||||||||||||||||||||
December 1 to 31, 2021 | 308,963 | 44.13 | 308,963 | 9,192,037 |
Exhibit Number | Exhibit | ||||
3.1 | |||||
3.2 | |||||
3.3 | |||||
10.1 | |||||
10.2 | |||||
10.3 | |||||
10.4 | |||||
31.1 | |||||
31.2 | |||||
32.1 | |||||
32.2 | |||||
101 | The following materials from the Edgewell Personal Care Company Quarterly Report on Form 10-Q formatted in inline eXtensible Business Reporting Language (“iXBRL”): (i) the Condensed Consolidated Statements of Earnings and Comprehensive Income for the three months ended December 31,, 2021 and 2020, (ii) the Condensed Consolidated Balance Sheets at December 31, 2021 and September 30, 2021, (iii) the Condensed Consolidated Statements of Cash Flows for the three months ended December 31, 2021 and 2020, (iv) the Condensed Consolidated Statements of Shareholder’s Equity for the three months ended December 31, 2021 and 2020 and (v) Notes to Condensed Consolidated Financial Statements. The financial information contained in the XBRL-related documents is “unaudited” and “unreviewed.” |
EDGEWELL PERSONAL CARE COMPANY | |||||||||||
Registrant | |||||||||||
By: | /s/ Daniel J. Sullivan | ||||||||||
Daniel J. Sullivan | |||||||||||
Chief Financial Officer | |||||||||||
Date: | February 8, 2022 |
/s/ Rod R. Little | ||
Rod R. Little | ||
Chief Executive Officer | ||
(principal executive officer) |
/s/ Daniel J. Sullivan | ||
Daniel J. Sullivan | ||
Chief Financial Officer | ||
(principal financial officer) |
/s/ Rod R. Little | ||
Rod R. Little | ||
Chief Executive Officer |
/s/ Daniel J. Sullivan | ||
Daniel J. Sullivan | ||
Chief Financial Officer |