[ X ]
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the quarterly period ended December 31, 2016
|
OR
|
[ ]
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from ____ to _____
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Commission File Number: 001-32433
|
Delaware
|
|
20-1297589
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(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
660 White Plains Road
Tarrytown, New York 10591
|
(Address of principal executive offices) (Zip Code)
|
|
(914) 524-6800
|
(Registrant's telephone number, including area code)
|
|
(Former name, former address and former fiscal year, if changed since last report)
|
Large accelerated filer
x
|
|
|
Accelerated filer
o
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Non-accelerated filer
o
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(Do not check if a smaller reporting company)
|
|
Smaller reporting company
o
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PART I.
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FINANCIAL INFORMATION
|
|
|
|
|
Item 1.
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Financial Statements
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|
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Consolidated Statements of Income and Comprehensive Income for the three and nine months ended December 31, 2016 and 2015 (unaudited)
|
|
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Consolidated Balance Sheets as of December 31, 2016 (unaudited) and March 31, 2016
|
|
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Consolidated Statements of Cash Flows for the nine months ended December 31, 2016 and 2015 (unaudited)
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|
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Notes to Consolidated Financial Statements (unaudited)
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|
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Item 2.
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Management's Discussion and Analysis of Financial Condition and Results of Operations
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Item 3.
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Quantitative and Qualitative Disclosures About Market Risk
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Item 4.
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Controls and Procedures
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PART II.
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OTHER INFORMATION
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|
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Item 1A.
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Risk Factors
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Item 6.
|
Exhibits
|
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Signatures
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PART I
|
FINANCIAL INFORMATION
|
ITEM 1.
|
FINANCIAL STATEMENTS
|
|
Three Months Ended December 31,
|
|
Nine Months Ended December 31,
|
||||||||||||
(In thousands, except per share data)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Net sales
|
$
|
216,732
|
|
|
$
|
199,485
|
|
|
$
|
640,519
|
|
|
$
|
596,034
|
|
Other revenues
|
31
|
|
|
710
|
|
|
871
|
|
|
2,358
|
|
||||
Total revenues
|
216,763
|
|
|
200,195
|
|
|
641,390
|
|
|
598,392
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Cost of Sales
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of sales (exclusive of depreciation shown below)
|
92,216
|
|
|
83,411
|
|
|
271,287
|
|
|
249,432
|
|
||||
Gross profit
|
124,547
|
|
|
116,784
|
|
|
370,103
|
|
|
348,960
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||
Advertising and promotion
|
30,682
|
|
|
29,935
|
|
|
86,909
|
|
|
84,250
|
|
||||
General and administrative
|
22,131
|
|
|
18,135
|
|
|
60,383
|
|
|
52,186
|
|
||||
Depreciation and amortization
|
5,852
|
|
|
6,071
|
|
|
18,700
|
|
|
17,478
|
|
||||
(Gain) loss on divestitures
|
(3,405
|
)
|
|
—
|
|
|
51,552
|
|
|
—
|
|
||||
Total operating expenses
|
55,260
|
|
|
54,141
|
|
|
217,544
|
|
|
153,914
|
|
||||
Operating income
|
69,287
|
|
|
62,643
|
|
|
152,559
|
|
|
195,046
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Other (income) expense
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income
|
(46
|
)
|
|
(31
|
)
|
|
(149
|
)
|
|
(91
|
)
|
||||
Interest expense
|
18,600
|
|
|
19,493
|
|
|
60,660
|
|
|
62,104
|
|
||||
Loss on extinguishment of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
451
|
|
||||
Total other expense
|
18,554
|
|
|
19,462
|
|
|
60,511
|
|
|
62,464
|
|
||||
Income before income taxes
|
50,733
|
|
|
43,181
|
|
|
92,048
|
|
|
132,582
|
|
||||
Provision for income taxes
|
19,092
|
|
|
15,186
|
|
|
33,743
|
|
|
46,611
|
|
||||
Net income
|
$
|
31,641
|
|
|
$
|
27,995
|
|
|
$
|
58,305
|
|
|
$
|
85,971
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
$
|
0.60
|
|
|
$
|
0.53
|
|
|
$
|
1.10
|
|
|
$
|
1.63
|
|
Diluted
|
$
|
0.59
|
|
|
$
|
0.53
|
|
|
$
|
1.09
|
|
|
$
|
1.62
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
52,999
|
|
|
52,824
|
|
|
52,960
|
|
|
52,727
|
|
||||
Diluted
|
53,359
|
|
|
53,203
|
|
|
53,339
|
|
|
53,106
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Comprehensive income, net of tax:
|
|
|
|
|
|
|
|
||||||||
Currency translation adjustments
|
(8,736
|
)
|
|
4,922
|
|
|
(11,857
|
)
|
|
(6,562
|
)
|
||||
Total other comprehensive (loss) income
|
(8,736
|
)
|
|
4,922
|
|
|
(11,857
|
)
|
|
(6,562
|
)
|
||||
Comprehensive income
|
$
|
22,905
|
|
|
$
|
32,917
|
|
|
$
|
46,448
|
|
|
$
|
79,409
|
|
(In thousands)
|
December 31,
2016 |
|
March 31,
2016 |
||||
Assets
|
|
|
|
||||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
63,289
|
|
|
$
|
27,230
|
|
Accounts receivable, net
|
104,388
|
|
|
95,247
|
|
||
Inventories
|
100,926
|
|
|
91,263
|
|
||
Deferred income tax assets
|
12,602
|
|
|
10,108
|
|
||
Prepaid expenses and other current assets
|
10,005
|
|
|
25,165
|
|
||
Total current assets
|
291,210
|
|
|
249,013
|
|
||
|
|
|
|
||||
Property and equipment, net
|
12,865
|
|
|
15,540
|
|
||
Goodwill
|
345,485
|
|
|
360,191
|
|
||
Intangible assets, net
|
2,156,378
|
|
|
2,322,723
|
|
||
Other long-term assets
|
4,914
|
|
|
1,324
|
|
||
Total Assets
|
$
|
2,810,852
|
|
|
$
|
2,948,791
|
|
|
|
|
|
||||
Liabilities and Stockholders' Equity
|
|
|
|
|
|
||
Current liabilities
|
|
|
|
|
|
||
Accounts payable
|
$
|
45,250
|
|
|
$
|
38,296
|
|
Accrued interest payable
|
8,399
|
|
|
8,664
|
|
||
Other accrued liabilities
|
78,675
|
|
|
59,724
|
|
||
Total current liabilities
|
132,324
|
|
|
106,684
|
|
||
|
|
|
|
||||
Long-term debt
|
|
|
|
||||
Principal amount
|
1,437,000
|
|
|
1,652,500
|
|
||
Less unamortized debt costs
|
(21,421
|
)
|
|
(27,191
|
)
|
||
Long-term debt, net
|
1,415,579
|
|
|
1,625,309
|
|
||
|
|
|
|
||||
Deferred income tax liabilities
|
459,780
|
|
|
469,622
|
|
||
Other long-term liabilities
|
3,312
|
|
|
2,840
|
|
||
Total Liabilities
|
2,010,995
|
|
|
2,204,455
|
|
||
|
|
|
|
||||
Commitments and Contingencies — Note 17
|
|
|
|
|
|
||
|
|
|
|
||||
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 - 53,269 shares at December 31, 2016 and 53,066 shares at March 31, 2016
|
532
|
|
|
530
|
|
||
Additional paid-in capital
|
455,684
|
|
|
445,182
|
|
||
Treasury stock, at cost - 332 shares at December 31, 2016 and 306 shares at March 31, 2016
|
(6,594
|
)
|
|
(5,163
|
)
|
||
Accumulated other comprehensive loss, net of tax
|
(35,382
|
)
|
|
(23,525
|
)
|
||
Retained earnings
|
385,617
|
|
|
327,312
|
|
||
Total Stockholders' Equity
|
799,857
|
|
|
744,336
|
|
||
Total Liabilities and Stockholders' Equity
|
$
|
2,810,852
|
|
|
$
|
2,948,791
|
|
|
Nine Months Ended December 31,
|
||||||
(In thousands)
|
2016
|
|
2015
|
||||
Operating Activities
|
|
|
|
||||
Net income
|
$
|
58,305
|
|
|
$
|
85,971
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|||
Depreciation and amortization
|
18,700
|
|
|
17,478
|
|
||
Loss on divestitures and sales of property and equipment
|
51,807
|
|
|
—
|
|
||
Deferred income taxes
|
(12,530
|
)
|
|
31,591
|
|
||
Amortization of debt origination costs
|
6,129
|
|
|
5,433
|
|
||
Stock-based compensation costs
|
6,260
|
|
|
7,098
|
|
||
Loss on extinguishment of debt
|
—
|
|
|
451
|
|
||
Gain on sale or disposal of property and equipment
|
—
|
|
|
(36
|
)
|
||
Changes in operating assets and liabilities, net of effects from acquisitions:
|
|
|
|
|
|||
Accounts receivable
|
(12,374
|
)
|
|
2,453
|
|
||
Inventories
|
(16,589
|
)
|
|
(7,114
|
)
|
||
Prepaid expenses and other current assets
|
11,149
|
|
|
5,472
|
|
||
Accounts payable
|
7,168
|
|
|
(17,553
|
)
|
||
Accrued liabilities
|
22,323
|
|
|
5,207
|
|
||
Net cash provided by operating activities
|
140,348
|
|
|
136,451
|
|
||
|
|
|
|
||||
Investing Activities
|
|
|
|
|
|
||
Purchases of property and equipment
|
(1,935
|
)
|
|
(2,540
|
)
|
||
Proceeds from divestitures
|
110,717
|
|
|
—
|
|
||
Proceeds from the sales of property and equipment
|
85
|
|
|
344
|
|
||
Proceeds from Insight Pharmaceuticals working capital arbitration settlement
|
—
|
|
|
7,237
|
|
||
Proceeds from DenTek working capital arbitration settlement
|
1,419
|
|
|
—
|
|
||
Net cash provided by investing activities
|
110,286
|
|
|
5,041
|
|
||
|
|
|
|
||||
Financing Activities
|
|
|
|
|
|
||
Term loan repayments
|
(130,500
|
)
|
|
(50,000
|
)
|
||
Borrowings under revolving credit agreement
|
20,000
|
|
|
15,000
|
|
||
Repayments under revolving credit agreement
|
(105,000
|
)
|
|
(81,100
|
)
|
||
Payments of debt origination costs
|
(9
|
)
|
|
(4,211
|
)
|
||
Proceeds from exercise of stock options
|
3,444
|
|
|
6,600
|
|
||
Proceeds from restricted stock exercises
|
—
|
|
|
544
|
|
||
Excess tax benefits from share-based awards
|
800
|
|
|
1,850
|
|
||
Fair value of shares surrendered as payment of tax withholding
|
(1,431
|
)
|
|
(2,187
|
)
|
||
Net cash used in financing activities
|
(212,696
|
)
|
|
(113,504
|
)
|
||
|
|
|
|
||||
Effects of exchange rate changes on cash and cash equivalents
|
(1,879
|
)
|
|
(333
|
)
|
||
Increase in cash and cash equivalents
|
36,059
|
|
|
27,655
|
|
||
Cash and cash equivalents - beginning of period
|
27,230
|
|
|
21,318
|
|
||
Cash and cash equivalents - end of period
|
$
|
63,289
|
|
|
$
|
48,973
|
|
|
|
|
|
||||
Interest paid
|
$
|
54,615
|
|
|
$
|
58,867
|
|
Income taxes paid
|
$
|
25,127
|
|
|
$
|
9,014
|
|
|
Years
|
Machinery
|
5
|
Computer equipment and software
|
3
|
Furniture and fixtures
|
7
|
Leasehold improvements
|
*
|
(In thousands)
|
February 5, 2016
|
||
|
|
||
Cash acquired
|
$
|
1,359
|
|
Accounts receivable
|
9,187
|
|
|
Inventories
|
14,304
|
|
|
Deferred income taxes
|
3,303
|
|
|
Prepaids and other current assets
|
6,728
|
|
|
Property, plant and equipment, net
|
3,555
|
|
|
Goodwill
|
73,737
|
|
|
Intangible assets, net
|
206,700
|
|
|
Total assets acquired
|
318,873
|
|
|
|
|
||
Accounts payable
|
3,261
|
|
|
Accrued expenses
|
14,336
|
|
|
Deferred income tax liabilities - long term
|
74,352
|
|
|
Total liabilities assumed
|
91,949
|
|
|
Total purchase price
|
$
|
226,924
|
|
(In thousands)
|
July 7,
2016 |
||
Components of assets sold:
|
|
||
Inventory
|
$
|
2,380
|
|
Intangible assets, net
|
91,208
|
|
|
Goodwill
|
2,920
|
|
|
Assets sold
|
96,508
|
|
|
Total purchase price received
|
42,380
|
|
|
|
54,128
|
|
|
Costs to sell
|
2,018
|
|
|
Pre-tax loss on divestitures
|
$
|
56,146
|
|
(In thousands)
|
December 2016
|
||
Components of assets sold:
|
|
||
Inventory
|
$
|
2,998
|
|
Intangible assets, net
|
45,870
|
|
|
Goodwill
|
6,889
|
|
|
Assets sold
|
55,757
|
|
|
Total purchase price received
|
59,614
|
|
|
Pre-tax net (gain) on divestitures
|
$
|
(3,857
|
)
|
(In thousands)
|
December 31,
2016 |
|
March 31,
2016 |
||||
Components of Accounts Receivable
|
|
|
|
||||
Trade accounts receivable
|
$
|
115,967
|
|
|
$
|
105,592
|
|
Other receivables
|
289
|
|
|
1,261
|
|
||
|
116,256
|
|
|
106,853
|
|
||
Less allowances for discounts, returns and uncollectible accounts
|
(11,868
|
)
|
|
(11,606
|
)
|
||
Accounts receivable, net
|
$
|
104,388
|
|
|
$
|
95,247
|
|
(In thousands)
|
December 31,
2016 |
|
March 31,
2016 |
||||
Components of Inventories
|
|
|
|
||||
Packaging and raw materials
|
$
|
7,944
|
|
|
$
|
7,563
|
|
Finished goods
|
92,982
|
|
|
83,700
|
|
||
Inventories
|
$
|
100,926
|
|
|
$
|
91,263
|
|
(In thousands)
|
December 31,
2016 |
|
March 31,
2016 |
||||
Components of Property and Equipment
|
|
|
|
||||
Machinery
|
$
|
8,217
|
|
|
$
|
7,734
|
|
Computer equipment
|
13,238
|
|
|
12,793
|
|
||
Furniture and fixtures
|
2,504
|
|
|
2,445
|
|
||
Leasehold improvements
|
7,347
|
|
|
7,389
|
|
||
|
31,306
|
|
|
30,361
|
|
||
Accumulated depreciation
|
(18,441
|
)
|
|
(14,821
|
)
|
||
Property and equipment, net
|
$
|
12,865
|
|
|
$
|
15,540
|
|
(In thousands)
|
North American OTC
Healthcare
|
|
International OTC
Healthcare
|
|
Household
Cleaning
|
|
Consolidated
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Balance — March 31, 2016
|
$
|
330,615
|
|
|
$
|
22,776
|
|
|
$
|
6,800
|
|
|
$
|
360,191
|
|
Reductions
|
(12,601
|
)
|
|
—
|
|
|
(555
|
)
|
|
(13,156
|
)
|
||||
Effects of foreign currency exchange rates
|
—
|
|
|
(1,550
|
)
|
|
—
|
|
|
(1,550
|
)
|
||||
Balance — December 31, 2016
|
$
|
318,014
|
|
|
$
|
21,226
|
|
|
$
|
6,245
|
|
|
$
|
345,485
|
|
(In thousands)
|
Indefinite
Lived
Trademarks
|
|
Finite Lived
Trademarks and Customer Relationships |
|
Totals
|
||||||
Gross Carrying Amounts
|
|
|
|
|
|
||||||
Balance — March 31, 2016
|
$
|
2,020,046
|
|
|
$
|
417,880
|
|
|
$
|
2,437,926
|
|
Reductions
|
(77,248
|
)
|
|
(76,903
|
)
|
|
(154,151
|
)
|
|||
Effects of foreign currency exchange rates
|
(5,185
|
)
|
|
(230
|
)
|
|
(5,415
|
)
|
|||
Balance — December 31, 2016
|
1,937,613
|
|
|
340,747
|
|
|
2,278,360
|
|
|||
|
|
|
|
|
|
|
|
|
|||
Accumulated Amortization
|
|
|
|
|
|
|
|
|
|||
Balance — March 31, 2016
|
—
|
|
|
115,203
|
|
|
115,203
|
|
|||
Additions
|
—
|
|
|
14,412
|
|
|
14,412
|
|
|||
Reductions
|
—
|
|
|
(7,610
|
)
|
|
(7,610
|
)
|
|||
Effects of foreign currency exchange rates
|
—
|
|
|
(23
|
)
|
|
(23
|
)
|
|||
Balance — December 31, 2016
|
—
|
|
|
121,982
|
|
|
121,982
|
|
|||
|
|
|
|
|
|
||||||
Intangible assets, net - December 31, 2016
|
$
|
1,937,613
|
|
|
$
|
218,765
|
|
|
$
|
2,156,378
|
|
|
|
|
|
|
|
||||||
Intangible Assets, net by Reportable Segment:
|
|
|
|
|
|
||||||
North American OTC Healthcare
|
$
|
1,755,635
|
|
|
$
|
196,391
|
|
|
$
|
1,952,026
|
|
International OTC Healthcare
|
80,716
|
|
|
1,004
|
|
|
81,720
|
|
|||
Household Cleaning
|
101,262
|
|
|
21,370
|
|
|
122,632
|
|
|||
Intangible assets, net - December 31, 2016
|
$
|
1,937,613
|
|
|
$
|
218,765
|
|
|
$
|
2,156,378
|
|
(In thousands)
|
December 31,
2016 |
|
March 31,
2016 |
||||
|
|
|
|
||||
Accrued marketing costs
|
$
|
33,786
|
|
|
$
|
26,373
|
|
Accrued compensation costs
|
7,686
|
|
|
9,574
|
|
||
Accrued broker commissions
|
1,277
|
|
|
1,497
|
|
||
Income taxes payable
|
13,327
|
|
|
3,675
|
|
||
Accrued professional fees
|
3,142
|
|
|
1,787
|
|
||
Deferred rent
|
609
|
|
|
836
|
|
||
Accrued production costs
|
5,216
|
|
|
3,324
|
|
||
Accrued lease termination costs
|
351
|
|
|
448
|
|
||
Income tax related payable
|
6,354
|
|
|
6,354
|
|
||
Other accrued liabilities
|
6,927
|
|
|
5,856
|
|
||
|
$
|
78,675
|
|
|
$
|
59,724
|
|
(In thousands, except percentages)
|
|
December 31,
2016 |
|
March 31,
2016 |
||||
2016 Senior Notes bearing interest at 6.375%, with interest payable on March 1 and September 1 of each year. The 2016 Senior Notes mature on March 1, 2024.
|
|
$
|
350,000
|
|
|
$
|
350,000
|
|
2013 Senior Notes bearing interest at 5.375%, with interest payable on June 15 and December 15 of each year. The 2013 Senior Notes mature on December 15, 2021.
|
|
400,000
|
|
|
400,000
|
|
||
2012 Term B-3 Loans bearing interest at the Borrower's option at either a base rate with a floor of 1.75% plus applicable margin or LIBOR with a floor of 0.75% plus applicable margin, due on September 3, 2021.
|
|
687,000
|
|
|
817,500
|
|
||
2012 ABL Revolver bearing interest at the Borrower's option at either a base rate plus applicable margin or LIBOR plus applicable margin. Any unpaid balance is due on June 9, 2020.
|
|
—
|
|
|
85,000
|
|
||
Total long-term debt (including current portion)
|
|
1,437,000
|
|
|
1,652,500
|
|
||
Current portion of long-term debt
|
|
—
|
|
|
—
|
|
||
Long-term debt
|
|
1,437,000
|
|
|
1,652,500
|
|
||
Less: unamortized debt costs
|
|
(21,421
|
)
|
|
(27,191
|
)
|
||
Long-term debt, net
|
|
$
|
1,415,579
|
|
|
$
|
1,625,309
|
|
|
|
December 31, 2016
|
|
March 31, 2016
|
||||||||||||
(In thousands)
|
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
||||||||
2016 Senior Notes
|
|
$
|
350,000
|
|
|
$
|
367,500
|
|
|
$
|
350,000
|
|
|
$
|
363,125
|
|
2013 Senior Notes
|
|
400,000
|
|
|
413,000
|
|
|
400,000
|
|
|
408,000
|
|
||||
Term B-3 Loans
|
|
687,000
|
|
|
692,153
|
|
|
817,500
|
|
|
818,522
|
|
||||
2012 ABL Revolver
|
|
—
|
|
|
—
|
|
|
85,000
|
|
|
85,000
|
|
|
December 31,
|
|
March 31,
|
||||
(In thousands)
|
2016
|
|
2016
|
||||
Components of Accumulated Other Comprehensive Loss
|
|
|
|
||||
Cumulative translation adjustment
|
$
|
(35,382
|
)
|
|
$
|
(23,525
|
)
|
Accumulated other comprehensive loss, net of tax
|
$
|
(35,382
|
)
|
|
$
|
(23,525
|
)
|
|
|
Three Months Ended December 31,
|
|
Nine Months Ended December 31,
|
||||||||||||
(In thousands, except per share data)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Numerator
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
|
$
|
31,641
|
|
|
$
|
27,995
|
|
|
$
|
58,305
|
|
|
$
|
85,971
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Denominator
|
|
|
|
|
|
|
|
|
|
|
||||||
Denominator for basic earnings per share — weighted average shares outstanding
|
|
52,999
|
|
|
52,824
|
|
|
52,960
|
|
|
52,727
|
|
||||
Dilutive effect of unvested restricted stock units and options issued to employees and directors
|
|
360
|
|
|
379
|
|
|
379
|
|
|
379
|
|
||||
Denominator for diluted earnings per share
|
|
53,359
|
|
|
53,203
|
|
|
53,339
|
|
|
53,106
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Earnings per Common Share:
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic net earnings per share
|
|
$
|
0.60
|
|
|
$
|
0.53
|
|
|
$
|
1.10
|
|
|
$
|
1.63
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Diluted net earnings per share
|
|
$
|
0.59
|
|
|
$
|
0.53
|
|
|
$
|
1.09
|
|
|
$
|
1.62
|
|
Restricted Stock Units
|
|
Shares
(in thousands)
|
|
Weighted-
Average
Grant-Date
Fair Value
|
|||
Nine months ended December 31, 2015
|
|
|
|
|
|||
Vested and nonvested at March 31, 2015
|
|
362.3
|
|
|
$
|
22.74
|
|
Granted
|
|
266.1
|
|
|
42.41
|
|
|
Vested and issued
|
|
(153.6
|
)
|
|
18.16
|
|
|
Forfeited
|
|
(1.4
|
)
|
|
33.50
|
|
|
Vested and nonvested at December 31, 2015
|
|
473.4
|
|
|
35.25
|
|
|
Vested at December 31, 2015
|
|
69.8
|
|
|
14.76
|
|
|
|
|
|
|
|
|
|
|
Nine months ended December 31, 2016
|
|
|
|
|
|||
Vested and nonvested at March 31, 2016
|
|
467.8
|
|
|
$
|
35.22
|
|
Granted
|
|
68.4
|
|
|
55.44
|
|
|
Vested and issued
|
|
(94.7
|
)
|
|
28.51
|
|
|
Forfeited
|
|
(91.4
|
)
|
|
41.71
|
|
|
Vested and nonvested at December 31, 2016
|
|
350.1
|
|
|
39.29
|
|
|
Vested at December 31, 2016
|
|
63.4
|
|
|
20.12
|
|
|
|
Nine months ended December 31,
|
||||||
|
|
2016
|
|
2015
|
||||
Expected volatility
|
|
37.8
|
%
|
|
40.2
|
%
|
||
Expected dividends
|
|
$
|
—
|
|
|
$
|
—
|
|
Expected term in years
|
|
6.0
|
|
|
6.0
|
|
||
Risk-free rate
|
|
1.7
|
%
|
|
1.7
|
%
|
Options
|
|
Shares
(in thousands)
|
|
Weighted-
Average
Exercise
Price
|
|
Weighted-
Average
Remaining
Contractual
Term (years)
|
|
Aggregate
Intrinsic
Value
(in thousands)
|
|||||
Nine months ended December 31, 2015
|
|
|
|
|
|
|
|
|
|||||
Outstanding at March 31, 2015
|
|
871.2
|
|
|
$
|
23.40
|
|
|
|
|
|
||
Granted
|
|
208.2
|
|
|
42.13
|
|
|
|
|
|
|||
Exercised
|
|
(336.9
|
)
|
|
18.99
|
|
|
|
|
|
|||
Forfeited or expired
|
|
(2.1
|
)
|
|
38.21
|
|
|
|
|
|
|||
Outstanding at December 31, 2015
|
|
740.4
|
|
|
30.63
|
|
|
7.9
|
|
$
|
15,325
|
|
|
Exercisable at December 31, 2015
|
|
313.5
|
|
|
21.68
|
|
|
6.7
|
|
$
|
9,341
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Nine months ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
||
Outstanding at March 31, 2016
|
|
727.7
|
|
|
$
|
30.70
|
|
|
|
|
|
||
Granted
|
|
264.3
|
|
|
55.86
|
|
|
|
|
|
|||
Exercised
|
|
(107.9
|
)
|
|
31.91
|
|
|
|
|
|
|||
Forfeited or expired
|
|
(92.2
|
)
|
|
42.62
|
|
|
|
|
|
|||
Outstanding at December 31, 2016
|
|
791.9
|
|
|
37.54
|
|
|
7.4
|
|
$
|
12,543
|
|
|
Exercisable at December 31, 2016
|
|
387.0
|
|
|
25.70
|
|
|
6.3
|
|
$
|
10,217
|
|
(In thousands)
|
|
|
|
|
|
|||||||
Year Ending March 31,
|
Facilities
|
|
Equipment
|
|
Total (a)
|
|||||||
2017 (Remaining three months ending March 31, 2017)
|
$
|
524
|
|
|
$
|
132
|
|
|
$
|
656
|
|
|
2018
|
2,029
|
|
|
443
|
|
|
2,472
|
|
||||
2019
|
2,023
|
|
|
174
|
|
|
2,197
|
|
||||
2020
|
1,848
|
|
|
86
|
|
|
1,934
|
|
||||
2021
|
903
|
|
|
7
|
|
|
910
|
|
||||
Thereafter
|
59
|
|
|
4
|
|
|
63
|
|
||||
|
$
|
7,386
|
|
|
$
|
846
|
|
|
$
|
8,232
|
|
(In thousands)
|
December 31,
2016
|
|
March 31, 2016
|
||||
Minimum lease payments
|
$
|
8,232
|
|
|
$
|
8,434
|
|
Less: Sublease rentals
|
(971
|
)
|
|
(1,165
|
)
|
||
|
$
|
7,261
|
|
|
$
|
7,269
|
|
(In thousands)
|
|
|||
Year Ending March 31,
|
Amount
|
|||
2017 (Remaining three months ending March 31, 2017)
|
258
|
|
||
2018
|
1,013
|
|
||
2019
|
982
|
|
||
2020
|
559
|
|
||
2021
|
—
|
|
||
|
$
|
2,812
|
|
|
Three Months Ended December 31, 2016
|
||||||||||||||
(In thousands)
|
North American OTC
Healthcare |
|
International OTC
Healthcare |
|
Household
Cleaning
|
|
Consolidated
|
||||||||
Gross segment revenues
|
$
|
178,097
|
|
|
$
|
18,459
|
|
|
$
|
21,000
|
|
|
$
|
217,556
|
|
Elimination of intersegment revenues
|
(824
|
)
|
|
—
|
|
|
—
|
|
|
(824
|
)
|
||||
Third-party segment revenues
|
177,273
|
|
|
18,459
|
|
|
21,000
|
|
|
216,732
|
|
||||
Other revenues
|
—
|
|
|
—
|
|
|
31
|
|
|
31
|
|
||||
Total segment revenues
|
177,273
|
|
|
18,459
|
|
|
21,031
|
|
|
216,763
|
|
||||
Cost of sales
|
68,378
|
|
|
7,678
|
|
|
16,160
|
|
|
92,216
|
|
||||
Gross profit
|
108,895
|
|
|
10,781
|
|
|
4,871
|
|
|
124,547
|
|
||||
Advertising and promotion
|
26,800
|
|
|
3,502
|
|
|
380
|
|
|
30,682
|
|
||||
Contribution margin
|
$
|
82,095
|
|
|
$
|
7,279
|
|
|
$
|
4,491
|
|
|
93,865
|
|
|
Other operating expenses*
|
|
|
|
|
|
|
|
|
24,578
|
|
|||||
Operating income
|
|
|
|
|
|
|
|
|
69,287
|
|
|||||
Other expense
|
|
|
|
|
|
|
|
|
18,554
|
|
|||||
Income before income taxes
|
|
|
|
|
|
|
50,733
|
|
|||||||
Provision for income taxes
|
|
|
|
|
|
|
|
|
19,092
|
|
|||||
Net income
|
|
|
|
|
|
|
$
|
31,641
|
|
|
Nine Months Ended December 31, 2016
|
||||||||||||||
(In thousands)
|
North American OTC
Healthcare |
|
International OTC
Healthcare |
|
Household
Cleaning
|
|
Consolidated
|
||||||||
Gross segment revenues
|
$
|
523,988
|
|
|
$
|
53,061
|
|
|
$
|
65,658
|
|
|
$
|
642,707
|
|
Elimination of intersegment revenues
|
(2,188
|
)
|
|
—
|
|
|
—
|
|
|
(2,188
|
)
|
||||
Third-party segment revenues
|
521,800
|
|
|
53,061
|
|
|
65,658
|
|
|
640,519
|
|
||||
Other revenues
|
—
|
|
|
6
|
|
|
865
|
|
|
871
|
|
||||
Total segment revenues
|
521,800
|
|
|
53,067
|
|
|
66,523
|
|
|
641,390
|
|
||||
Cost of sales
|
198,014
|
|
|
21,722
|
|
|
51,551
|
|
|
271,287
|
|
||||
Gross profit
|
323,786
|
|
|
31,345
|
|
|
14,972
|
|
|
370,103
|
|
||||
Advertising and promotion
|
76,651
|
|
|
8,870
|
|
|
1,388
|
|
|
86,909
|
|
||||
Contribution margin
|
$
|
247,135
|
|
|
$
|
22,475
|
|
|
$
|
13,584
|
|
|
283,194
|
|
|
Other operating expenses*
|
|
|
|
|
|
|
|
|
130,635
|
|
|||||
Operating income
|
|
|
|
|
|
|
|
|
152,559
|
|
|||||
Other expense
|
|
|
|
|
|
|
|
|
60,511
|
|
|||||
Income before income taxes
|
|
|
|
|
|
|
92,048
|
|
|||||||
Provision for income taxes
|
|
|
|
|
|
|
|
|
33,743
|
|
|||||
Net income
|
|
|
|
|
|
|
$
|
58,305
|
|
|
Three Months Ended December 31, 2015
|
||||||||||||||
(In thousands)
|
North American OTC
Healthcare |
|
International OTC
Healthcare |
|
Household
Cleaning
|
|
Consolidated
|
||||||||
Gross segment revenues**
|
$
|
165,287
|
|
|
$
|
13,803
|
|
|
$
|
20,623
|
|
|
$
|
199,713
|
|
Elimination of intersegment revenues
|
(228
|
)
|
|
—
|
|
|
—
|
|
|
(228
|
)
|
||||
Third-party segment revenues
|
165,059
|
|
|
13,803
|
|
|
20,623
|
|
|
199,485
|
|
||||
Other revenues**
|
—
|
|
|
9
|
|
|
701
|
|
|
710
|
|
||||
Total segment revenues
|
165,059
|
|
|
13,812
|
|
|
21,324
|
|
|
200,195
|
|
||||
Cost of sales**
|
62,655
|
|
|
4,964
|
|
|
15,792
|
|
|
83,411
|
|
||||
Gross profit
|
102,404
|
|
|
8,848
|
|
|
5,532
|
|
|
116,784
|
|
||||
Advertising and promotion
|
26,472
|
|
|
2,838
|
|
|
625
|
|
|
29,935
|
|
||||
Contribution margin
|
$
|
75,932
|
|
|
$
|
6,010
|
|
|
$
|
4,907
|
|
|
86,849
|
|
|
Other operating expenses
|
|
|
|
|
|
|
|
|
24,206
|
|
|||||
Operating income
|
|
|
|
|
|
|
|
|
62,643
|
|
|||||
Other expense
|
|
|
|
|
|
|
|
|
19,462
|
|
|||||
Income before income taxes
|
|
|
|
|
|
|
43,181
|
|
|||||||
Provision for income taxes
|
|
|
|
|
|
|
|
|
15,186
|
|
|||||
Net income
|
|
|
|
|
|
|
$
|
27,995
|
|
|
Nine Months Ended December 31, 2015
|
||||||||||||||
(In thousands)
|
North American OTC
Healthcare |
|
International OTC
Healthcare |
|
Household
Cleaning
|
|
Consolidated
|
||||||||
Gross segment revenues**
|
$
|
489,265
|
|
|
$
|
43,213
|
|
|
$
|
65,984
|
|
|
$
|
598,462
|
|
Elimination of intersegment revenues
|
(2,428
|
)
|
|
—
|
|
|
—
|
|
|
(2,428
|
)
|
||||
Third-party segment revenues
|
486,837
|
|
|
43,213
|
|
|
65,984
|
|
|
596,034
|
|
||||
Other revenues**
|
15
|
|
|
40
|
|
|
2,303
|
|
|
2,358
|
|
||||
Total segment revenues
|
486,852
|
|
|
43,253
|
|
|
68,287
|
|
|
598,392
|
|
||||
Cost of sales**
|
182,279
|
|
|
16,347
|
|
|
50,806
|
|
|
249,432
|
|
||||
Gross profit
|
304,573
|
|
|
26,906
|
|
|
17,481
|
|
|
348,960
|
|
||||
Advertising and promotion
|
74,107
|
|
|
8,338
|
|
|
1,805
|
|
|
84,250
|
|
||||
Contribution margin
|
$
|
230,466
|
|
|
$
|
18,568
|
|
|
$
|
15,676
|
|
|
264,710
|
|
|
Other operating expenses
|
|
|
|
|
|
|
|
|
69,664
|
|
|||||
Operating income
|
|
|
|
|
|
|
|
|
195,046
|
|
|||||
Other expense
|
|
|
|
|
|
|
|
|
62,464
|
|
|||||
Income before income taxes
|
|
|
|
|
|
|
132,582
|
|
|||||||
Provision for income taxes
|
|
|
|
|
|
|
|
|
46,611
|
|
|||||
Net income
|
|
|
|
|
|
|
$
|
85,971
|
|
|
Three Months Ended December 31, 2016
|
||||||||||||||
(In thousands)
|
North American OTC
Healthcare |
|
International OTC
Healthcare |
|
Household
Cleaning |
|
Consolidated
|
||||||||
Analgesics
|
$
|
32,439
|
|
|
$
|
444
|
|
|
$
|
—
|
|
|
$
|
32,883
|
|
Cough & Cold
|
29,803
|
|
|
4,166
|
|
|
—
|
|
|
33,969
|
|
||||
Women's Health
|
30,896
|
|
|
580
|
|
|
—
|
|
|
31,476
|
|
||||
Gastrointestinal
|
15,109
|
|
|
6,701
|
|
|
—
|
|
|
21,810
|
|
||||
Eye & Ear Care
|
23,571
|
|
|
2,997
|
|
|
—
|
|
|
26,568
|
|
||||
Dermatologicals
|
19,948
|
|
|
479
|
|
|
—
|
|
|
20,427
|
|
||||
Oral Care
|
24,129
|
|
|
3,083
|
|
|
—
|
|
|
27,212
|
|
||||
Other OTC
|
1,378
|
|
|
9
|
|
|
—
|
|
|
1,387
|
|
||||
Household Cleaning
|
—
|
|
|
—
|
|
|
21,031
|
|
|
21,031
|
|
||||
Total segment revenues
|
$
|
177,273
|
|
|
$
|
18,459
|
|
|
$
|
21,031
|
|
|
$
|
216,763
|
|
|
Nine Months Ended December 31, 2016
|
||||||||||||||
(In thousands)
|
North American OTC
Healthcare |
|
International OTC
Healthcare |
|
Household
Cleaning |
|
Consolidated
|
||||||||
Analgesics
|
$
|
90,558
|
|
|
$
|
1,515
|
|
|
$
|
—
|
|
|
$
|
92,073
|
|
Cough & Cold
|
68,876
|
|
|
13,718
|
|
|
—
|
|
|
82,594
|
|
||||
Women's Health
|
97,051
|
|
|
2,151
|
|
|
—
|
|
|
99,202
|
|
||||
Gastrointestinal
|
50,495
|
|
|
17,045
|
|
|
—
|
|
|
67,540
|
|
||||
Eye & Ear Care
|
72,512
|
|
|
8,782
|
|
|
—
|
|
|
81,294
|
|
||||
Dermatologicals
|
65,598
|
|
|
1,717
|
|
|
—
|
|
|
67,315
|
|
||||
Oral Care
|
72,308
|
|
|
8,120
|
|
|
—
|
|
|
80,428
|
|
||||
Other OTC
|
4,402
|
|
|
19
|
|
|
—
|
|
|
4,421
|
|
||||
Household Cleaning
|
—
|
|
|
—
|
|
|
66,523
|
|
|
66,523
|
|
||||
Total segment revenues
|
$
|
521,800
|
|
|
$
|
53,067
|
|
|
$
|
66,523
|
|
|
$
|
641,390
|
|
|
Three Months Ended December 31, 2015
|
||||||||||||||
(In thousands)
|
North American OTC
Healthcare |
|
International OTC
Healthcare |
|
Household
Cleaning |
|
Consolidated
|
||||||||
Analgesics
|
$
|
30,454
|
|
|
$
|
450
|
|
|
$
|
—
|
|
|
$
|
30,904
|
|
Cough & Cold
|
30,466
|
|
|
3,696
|
|
|
—
|
|
|
34,162
|
|
||||
Women's Health
|
33,521
|
|
|
877
|
|
|
—
|
|
|
34,398
|
|
||||
Gastrointestinal
|
17,401
|
|
|
5,517
|
|
|
—
|
|
|
22,918
|
|
||||
Eye & Ear Care
|
21,936
|
|
|
2,613
|
|
|
—
|
|
|
24,549
|
|
||||
Dermatologicals
|
19,734
|
|
|
524
|
|
|
—
|
|
|
20,258
|
|
||||
Oral Care
|
9,996
|
|
|
126
|
|
|
—
|
|
|
10,122
|
|
||||
Other OTC
|
1,551
|
|
|
9
|
|
|
—
|
|
|
1,560
|
|
||||
Household Cleaning
|
—
|
|
|
—
|
|
|
21,324
|
|
|
21,324
|
|
||||
Total segment revenues
|
$
|
165,059
|
|
|
$
|
13,812
|
|
|
$
|
21,324
|
|
|
$
|
200,195
|
|
|
Nine Months Ended December 31, 2015
|
||||||||||||||
(In thousands)
|
North American OTC
Healthcare |
|
International OTC
Healthcare |
|
Household
Cleaning |
|
Consolidated
|
||||||||
Analgesics
|
$
|
86,996
|
|
|
$
|
1,668
|
|
|
$
|
—
|
|
|
$
|
88,664
|
|
Cough & Cold
|
74,681
|
|
|
12,948
|
|
|
—
|
|
|
87,629
|
|
||||
Women's Health
|
100,036
|
|
|
2,381
|
|
|
—
|
|
|
102,417
|
|
||||
Gastrointestinal
|
56,782
|
|
|
14,667
|
|
|
—
|
|
|
71,449
|
|
||||
Eye & Ear Care
|
71,159
|
|
|
9,393
|
|
|
—
|
|
|
80,552
|
|
||||
Dermatologicals
|
63,026
|
|
|
1,669
|
|
|
—
|
|
|
64,695
|
|
||||
Oral Care
|
29,706
|
|
|
509
|
|
|
—
|
|
|
30,215
|
|
||||
Other OTC
|
4,466
|
|
|
18
|
|
|
—
|
|
|
4,484
|
|
||||
Household Cleaning
|
—
|
|
|
—
|
|
|
68,287
|
|
|
68,287
|
|
||||
Total segment revenues
|
$
|
486,852
|
|
|
$
|
43,253
|
|
|
$
|
68,287
|
|
|
$
|
598,392
|
|
December 31, 2016
(In thousands) |
North American OTC
Healthcare |
|
International OTC
Healthcare |
|
Household
Cleaning
|
|
Consolidated
|
||||||||
Goodwill
|
$
|
318,014
|
|
|
$
|
21,226
|
|
|
$
|
6,245
|
|
|
$
|
345,485
|
|
|
|
|
|
|
|
|
|
||||||||
Intangible assets
|
|
|
|
|
|
|
|
|
|||||||
Indefinite-lived
|
1,755,635
|
|
|
80,716
|
|
|
101,262
|
|
|
1,937,613
|
|
||||
Finite-lived
|
196,391
|
|
|
1,004
|
|
|
21,370
|
|
|
218,765
|
|
||||
Intangible assets, net
|
1,952,026
|
|
|
81,720
|
|
|
122,632
|
|
|
2,156,378
|
|
||||
Total
|
$
|
2,270,040
|
|
|
$
|
102,946
|
|
|
$
|
128,877
|
|
|
$
|
2,501,863
|
|
March 31, 2016
(In thousands)
|
North American OTC
Healthcare |
|
International OTC
Healthcare |
|
Household
Cleaning |
|
Consolidated
|
||||||||
Goodwill
|
$
|
330,615
|
|
|
$
|
22,776
|
|
|
$
|
6,800
|
|
|
$
|
360,191
|
|
|
|
|
|
|
|
|
|
||||||||
Intangible assets
|
|
|
|
|
|
|
|
|
|||||||
Indefinite-lived
|
1,823,873
|
|
|
85,901
|
|
|
110,272
|
|
|
2,020,046
|
|
||||
Finite-lived
|
277,762
|
|
|
2,237
|
|
|
22,678
|
|
|
302,677
|
|
||||
Intangible assets, net
|
2,101,635
|
|
|
88,138
|
|
|
132,950
|
|
|
2,322,723
|
|
||||
Total
|
$
|
2,432,250
|
|
|
$
|
110,914
|
|
|
$
|
139,750
|
|
|
$
|
2,682,914
|
|
(In thousands)
|
|
Prestige
Brands
Holdings,
Inc.
|
|
Prestige
Brands,
Inc.,
the issuer
|
|
Combined
Subsidiary
Guarantors
|
|
Combined
Non-
Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net sales
|
|
$
|
—
|
|
|
$
|
29,156
|
|
|
$
|
172,216
|
|
|
$
|
16,184
|
|
|
$
|
(824
|
)
|
|
$
|
216,732
|
|
Other revenues
|
|
—
|
|
|
76
|
|
|
31
|
|
|
329
|
|
|
(405
|
)
|
|
31
|
|
||||||
Total revenues
|
|
—
|
|
|
29,232
|
|
|
172,247
|
|
|
16,513
|
|
|
(1,229
|
)
|
|
216,763
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of sales (exclusive of depreciation shown below)
|
|
—
|
|
|
12,179
|
|
|
74,494
|
|
|
6,684
|
|
|
(1,141
|
)
|
|
92,216
|
|
||||||
Gross profit
|
|
—
|
|
|
17,053
|
|
|
97,753
|
|
|
9,829
|
|
|
(88
|
)
|
|
124,547
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Advertising and promotion
|
|
—
|
|
|
3,009
|
|
|
24,266
|
|
|
3,407
|
|
|
—
|
|
|
30,682
|
|
||||||
General and administrative
|
|
2,486
|
|
|
2,004
|
|
|
15,644
|
|
|
1,997
|
|
|
—
|
|
|
22,131
|
|
||||||
Depreciation and amortization
|
|
722
|
|
|
154
|
|
|
4,860
|
|
|
116
|
|
|
—
|
|
|
5,852
|
|
||||||
Gain on divestitures
|
|
—
|
|
|
—
|
|
|
(3,405
|
)
|
|
—
|
|
|
—
|
|
|
(3,405
|
)
|
||||||
Total operating expenses
|
|
3,208
|
|
|
5,167
|
|
|
41,365
|
|
|
5,520
|
|
|
—
|
|
|
55,260
|
|
||||||
Operating income (loss)
|
|
(3,208
|
)
|
|
11,886
|
|
|
56,388
|
|
|
4,309
|
|
|
(88
|
)
|
|
69,287
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other (income) expense
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
|
(12,056
|
)
|
|
(21,422
|
)
|
|
(1,299
|
)
|
|
(160
|
)
|
|
34,891
|
|
|
(46
|
)
|
||||||
Interest expense
|
|
8,495
|
|
|
18,598
|
|
|
25,099
|
|
|
1,299
|
|
|
(34,891
|
)
|
|
18,600
|
|
||||||
Equity in (income) loss of subsidiaries
|
|
(32,821
|
)
|
|
(23,629
|
)
|
|
(2,089
|
)
|
|
—
|
|
|
58,539
|
|
|
—
|
|
||||||
Total other expense (income)
|
|
(36,382
|
)
|
|
(26,453
|
)
|
|
21,711
|
|
|
1,139
|
|
|
58,539
|
|
|
18,554
|
|
||||||
Income (loss) before income taxes
|
|
33,174
|
|
|
38,339
|
|
|
34,677
|
|
|
3,170
|
|
|
(58,627
|
)
|
|
50,733
|
|
||||||
Provision for income taxes
|
|
1,533
|
|
|
5,087
|
|
|
11,391
|
|
|
1,081
|
|
|
—
|
|
|
19,092
|
|
||||||
Net income (loss)
|
|
$
|
31,641
|
|
|
$
|
33,252
|
|
|
$
|
23,286
|
|
|
$
|
2,089
|
|
|
$
|
(58,627
|
)
|
|
$
|
31,641
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive (loss) income, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Currency translation adjustments
|
|
(8,736
|
)
|
|
(8,736
|
)
|
|
(8,736
|
)
|
|
(8,736
|
)
|
|
26,208
|
|
|
(8,736
|
)
|
||||||
Total other comprehensive (loss) income
|
|
(8,736
|
)
|
|
(8,736
|
)
|
|
(8,736
|
)
|
|
(8,736
|
)
|
|
26,208
|
|
|
(8,736
|
)
|
||||||
Comprehensive (loss) income
|
|
$
|
22,905
|
|
|
$
|
24,516
|
|
|
$
|
14,550
|
|
|
$
|
(6,647
|
)
|
|
$
|
(32,419
|
)
|
|
$
|
22,905
|
|
(In thousands)
|
|
Prestige
Brands
Holdings,
Inc.
|
|
Prestige
Brands,
Inc.,
the issuer
|
|
Combined
Subsidiary
Guarantors
|
|
Combined
Non-
Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net sales
|
|
$
|
—
|
|
|
$
|
83,128
|
|
|
$
|
512,212
|
|
|
$
|
47,368
|
|
|
$
|
(2,189
|
)
|
|
$
|
640,519
|
|
Other revenues
|
|
—
|
|
|
223
|
|
|
865
|
|
|
1,309
|
|
|
(1,526
|
)
|
|
871
|
|
||||||
Total revenues
|
|
—
|
|
|
83,351
|
|
|
513,077
|
|
|
48,677
|
|
|
(3,715
|
)
|
|
641,390
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of sales (exclusive of depreciation shown below)
|
|
—
|
|
|
35,331
|
|
|
220,336
|
|
|
19,162
|
|
|
(3,542
|
)
|
|
271,287
|
|
||||||
Gross profit
|
|
—
|
|
|
48,020
|
|
|
292,741
|
|
|
29,515
|
|
|
(173
|
)
|
|
370,103
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Advertising and promotion
|
|
—
|
|
|
11,505
|
|
|
66,689
|
|
|
8,715
|
|
|
—
|
|
|
86,909
|
|
||||||
General and administrative
|
|
6,224
|
|
|
5,954
|
|
|
43,260
|
|
|
4,945
|
|
|
—
|
|
|
60,383
|
|
||||||
Depreciation and amortization
|
|
2,474
|
|
|
456
|
|
|
15,410
|
|
|
360
|
|
|
—
|
|
|
18,700
|
|
||||||
Loss on divestitures
|
|
—
|
|
|
—
|
|
|
51,552
|
|
|
—
|
|
|
—
|
|
|
51,552
|
|
||||||
Total operating expenses
|
|
8,698
|
|
|
17,915
|
|
|
176,911
|
|
|
14,020
|
|
|
—
|
|
|
217,544
|
|
||||||
Operating income (loss)
|
|
(8,698
|
)
|
|
30,105
|
|
|
115,830
|
|
|
15,495
|
|
|
(173
|
)
|
|
152,559
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other (income) expense
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
|
(36,100
|
)
|
|
(64,143
|
)
|
|
(3,865
|
)
|
|
(475
|
)
|
|
104,434
|
|
|
(149
|
)
|
||||||
Interest expense
|
|
25,437
|
|
|
60,654
|
|
|
75,138
|
|
|
3,865
|
|
|
(104,434
|
)
|
|
60,660
|
|
||||||
Equity in (income) loss of subsidiaries
|
|
(59,111
|
)
|
|
(37,390
|
)
|
|
(8,766
|
)
|
|
—
|
|
|
105,267
|
|
|
—
|
|
||||||
Total other expense (income)
|
|
(69,774
|
)
|
|
(40,879
|
)
|
|
62,507
|
|
|
3,390
|
|
|
105,267
|
|
|
60,511
|
|
||||||
Income (loss) before income taxes
|
|
61,076
|
|
|
70,984
|
|
|
53,323
|
|
|
12,105
|
|
|
(105,440
|
)
|
|
92,048
|
|
||||||
Provision for income taxes
|
|
2,771
|
|
|
11,791
|
|
|
15,842
|
|
|
3,339
|
|
|
—
|
|
|
33,743
|
|
||||||
Net income (loss)
|
|
$
|
58,305
|
|
|
$
|
59,193
|
|
|
$
|
37,481
|
|
|
$
|
8,766
|
|
|
$
|
(105,440
|
)
|
|
$
|
58,305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive (loss) income, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Currency translation adjustments
|
|
(11,857
|
)
|
|
(11,857
|
)
|
|
(11,857
|
)
|
|
(11,857
|
)
|
|
35,571
|
|
|
(11,857
|
)
|
||||||
Total other comprehensive (loss) income
|
|
(11,857
|
)
|
|
(11,857
|
)
|
|
(11,857
|
)
|
|
(11,857
|
)
|
|
35,571
|
|
|
(11,857
|
)
|
||||||
Comprehensive (loss) income
|
|
$
|
46,448
|
|
|
$
|
47,336
|
|
|
$
|
25,624
|
|
|
$
|
(3,091
|
)
|
|
$
|
(69,869
|
)
|
|
$
|
46,448
|
|
(In thousands)
|
|
Prestige
Brands
Holdings,
Inc.
|
|
Prestige
Brands, Inc., the issuer |
|
Combined
Subsidiary
Guarantors
|
|
Combined
Non-
Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net sales
|
|
$
|
—
|
|
|
$
|
27,598
|
|
|
$
|
159,783
|
|
|
$
|
12,332
|
|
|
$
|
(228
|
)
|
|
$
|
199,485
|
|
Other revenues
|
|
—
|
|
|
98
|
|
|
700
|
|
|
356
|
|
|
(444
|
)
|
|
710
|
|
||||||
Total revenues
|
|
—
|
|
|
27,696
|
|
|
160,483
|
|
|
12,688
|
|
|
(672
|
)
|
|
200,195
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of sales (exclusive of depreciation shown below)
|
|
—
|
|
|
11,796
|
|
|
68,148
|
|
|
4,448
|
|
|
(981
|
)
|
|
83,411
|
|
||||||
Gross profit
|
|
—
|
|
|
15,900
|
|
|
92,335
|
|
|
8,240
|
|
|
309
|
|
|
116,784
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Advertising and promotion
|
|
—
|
|
|
1,881
|
|
|
25,251
|
|
|
2,803
|
|
|
—
|
|
|
29,935
|
|
||||||
General and administrative
|
|
1,370
|
|
|
1,789
|
|
|
13,463
|
|
|
1,513
|
|
|
—
|
|
|
18,135
|
|
||||||
Depreciation and amortization
|
|
1,013
|
|
|
151
|
|
|
4,794
|
|
|
113
|
|
|
—
|
|
|
6,071
|
|
||||||
Total operating expenses
|
|
2,383
|
|
|
3,821
|
|
|
43,508
|
|
|
4,429
|
|
|
—
|
|
|
54,141
|
|
||||||
Operating income (loss)
|
|
(2,383
|
)
|
|
12,079
|
|
|
48,827
|
|
|
3,811
|
|
|
309
|
|
|
62,643
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other (income) expense
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
|
(12,141
|
)
|
|
(21,569
|
)
|
|
(1,124
|
)
|
|
(128
|
)
|
|
34,931
|
|
|
(31
|
)
|
||||||
Interest expense
|
|
8,602
|
|
|
19,443
|
|
|
25,255
|
|
|
1,124
|
|
|
(34,931
|
)
|
|
19,493
|
|
||||||
Equity in (income) loss of subsidiaries
|
|
(27,711
|
)
|
|
(15,898
|
)
|
|
(2,033
|
)
|
|
—
|
|
|
45,642
|
|
|
—
|
|
||||||
Total other (income) expense
|
|
(31,250
|
)
|
|
(18,024
|
)
|
|
22,098
|
|
|
996
|
|
|
45,642
|
|
|
19,462
|
|
||||||
Income (loss) before income taxes
|
|
28,867
|
|
|
30,103
|
|
|
26,729
|
|
|
2,815
|
|
|
(45,333
|
)
|
|
43,181
|
|
||||||
Provision for income taxes
|
|
872
|
|
|
4,950
|
|
|
8,582
|
|
|
782
|
|
|
—
|
|
|
15,186
|
|
||||||
Net income (loss)
|
|
$
|
27,995
|
|
|
$
|
25,153
|
|
|
$
|
18,147
|
|
|
$
|
2,033
|
|
|
$
|
(45,333
|
)
|
|
$
|
27,995
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive (loss) income, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Currency translation adjustments
|
|
4,922
|
|
|
4,922
|
|
|
4,922
|
|
|
4,922
|
|
|
(14,766
|
)
|
|
4,922
|
|
||||||
Total other comprehensive (loss) income
|
|
4,922
|
|
|
4,922
|
|
|
4,922
|
|
|
4,922
|
|
|
(14,766
|
)
|
|
4,922
|
|
||||||
Comprehensive income (loss)
|
|
$
|
32,917
|
|
|
$
|
30,075
|
|
|
$
|
23,069
|
|
|
$
|
6,955
|
|
|
$
|
(60,099
|
)
|
|
$
|
32,917
|
|
(In thousands)
|
|
Prestige
Brands
Holdings,
Inc.
|
|
Prestige
Brands, Inc., the issuer |
|
Combined
Subsidiary
Guarantors
|
|
Combined
Non-
Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net sales
|
|
$
|
—
|
|
|
$
|
83,438
|
|
|
$
|
477,079
|
|
|
$
|
37,945
|
|
|
$
|
(2,428
|
)
|
|
$
|
596,034
|
|
Other revenues
|
|
—
|
|
|
273
|
|
|
2,317
|
|
|
1,397
|
|
|
(1,629
|
)
|
|
2,358
|
|
||||||
Total revenues
|
|
—
|
|
|
83,711
|
|
|
479,396
|
|
|
39,342
|
|
|
(4,057
|
)
|
|
598,392
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of sales (exclusive of depreciation shown below)
|
|
—
|
|
|
33,105
|
|
|
206,646
|
|
|
13,808
|
|
|
(4,127
|
)
|
|
249,432
|
|
||||||
Gross profit
|
|
—
|
|
|
50,606
|
|
|
272,750
|
|
|
25,534
|
|
|
70
|
|
|
348,960
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Advertising and promotion
|
|
—
|
|
|
7,602
|
|
|
68,412
|
|
|
8,236
|
|
|
—
|
|
|
84,250
|
|
||||||
General and administrative
|
|
3,884
|
|
|
5,644
|
|
|
38,326
|
|
|
4,332
|
|
|
—
|
|
|
52,186
|
|
||||||
Depreciation and amortization
|
|
3,032
|
|
|
444
|
|
|
13,686
|
|
|
316
|
|
|
—
|
|
|
17,478
|
|
||||||
Total operating expenses
|
|
6,916
|
|
|
13,690
|
|
|
120,424
|
|
|
12,884
|
|
|
—
|
|
|
153,914
|
|
||||||
Operating income (loss)
|
|
(6,916
|
)
|
|
36,916
|
|
|
152,326
|
|
|
12,650
|
|
|
70
|
|
|
195,046
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other (income) expense
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
|
(36,351
|
)
|
|
(64,584
|
)
|
|
(3,513
|
)
|
|
(366
|
)
|
|
104,723
|
|
|
(91
|
)
|
||||||
Interest expense
|
|
26,056
|
|
|
61,654
|
|
|
75,604
|
|
|
3,513
|
|
|
(104,723
|
)
|
|
62,104
|
|
||||||
Loss on extinguishment of debt
|
|
—
|
|
|
451
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
451
|
|
||||||
Equity in (income) loss of subsidiaries
|
|
(84,458
|
)
|
|
(52,599
|
)
|
|
(6,868
|
)
|
|
—
|
|
|
143,925
|
|
|
—
|
|
||||||
Total other (income) expense
|
|
(94,753
|
)
|
|
(55,078
|
)
|
|
65,223
|
|
|
3,147
|
|
|
143,925
|
|
|
62,464
|
|
||||||
Income (loss) before income taxes
|
|
87,837
|
|
|
91,994
|
|
|
87,103
|
|
|
9,503
|
|
|
(143,855
|
)
|
|
132,582
|
|
||||||
Provision for income taxes
|
|
1,866
|
|
|
13,867
|
|
|
28,243
|
|
|
2,635
|
|
|
—
|
|
|
46,611
|
|
||||||
Net income (loss)
|
|
$
|
85,971
|
|
|
$
|
78,127
|
|
|
$
|
58,860
|
|
|
$
|
6,868
|
|
|
$
|
(143,855
|
)
|
|
$
|
85,971
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive (loss) income, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Currency translation adjustments
|
|
(6,562
|
)
|
|
(6,562
|
)
|
|
(6,562
|
)
|
|
(6,562
|
)
|
|
19,686
|
|
|
(6,562
|
)
|
||||||
Total other comprehensive (loss) income
|
|
(6,562
|
)
|
|
(6,562
|
)
|
|
(6,562
|
)
|
|
(6,562
|
)
|
|
19,686
|
|
|
(6,562
|
)
|
||||||
Comprehensive income (loss)
|
|
$
|
79,409
|
|
|
$
|
71,565
|
|
|
$
|
52,298
|
|
|
$
|
306
|
|
|
$
|
(124,169
|
)
|
|
$
|
79,409
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(In thousands)
|
|
Prestige
Brands
Holdings,
Inc.
|
|
Prestige
Brands, Inc., the issuer |
|
Combined
Subsidiary
Guarantors
|
|
Combined
Non-
Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
|
$
|
36,821
|
|
|
$
|
—
|
|
|
$
|
202
|
|
|
$
|
26,266
|
|
|
$
|
—
|
|
|
$
|
63,289
|
|
Accounts receivable, net
|
|
—
|
|
|
12,291
|
|
|
79,927
|
|
|
12,170
|
|
|
—
|
|
|
104,388
|
|
||||||
Inventories
|
|
—
|
|
|
16,758
|
|
|
75,522
|
|
|
9,351
|
|
|
(705
|
)
|
|
100,926
|
|
||||||
Deferred income tax assets
|
|
2,372
|
|
|
918
|
|
|
8,624
|
|
|
688
|
|
|
—
|
|
|
12,602
|
|
||||||
Prepaid expenses and other current assets
|
|
1,611
|
|
|
158
|
|
|
7,464
|
|
|
772
|
|
|
—
|
|
|
10,005
|
|
||||||
Total current assets
|
|
40,804
|
|
|
30,125
|
|
|
171,739
|
|
|
49,247
|
|
|
(705
|
)
|
|
291,210
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property and equipment, net
|
|
7,595
|
|
|
315
|
|
|
4,478
|
|
|
477
|
|
|
—
|
|
|
12,865
|
|
||||||
Goodwill
|
|
—
|
|
|
66,007
|
|
|
258,252
|
|
|
21,226
|
|
|
—
|
|
|
345,485
|
|
||||||
Intangible assets, net
|
|
—
|
|
|
191,387
|
|
|
1,882,242
|
|
|
82,749
|
|
|
—
|
|
|
2,156,378
|
|
||||||
Other long-term assets
|
|
2,500
|
|
|
2,414
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,914
|
|
||||||
Intercompany receivables
|
|
1,451,328
|
|
|
2,518,756
|
|
|
1,670,364
|
|
|
14,432
|
|
|
(5,654,880
|
)
|
|
—
|
|
||||||
Investment in subsidiary
|
|
1,690,523
|
|
|
1,553,251
|
|
|
76,662
|
|
|
—
|
|
|
(3,320,436
|
)
|
|
—
|
|
||||||
Total Assets
|
|
$
|
3,192,750
|
|
|
$
|
4,362,255
|
|
|
$
|
4,063,737
|
|
|
$
|
168,131
|
|
|
$
|
(8,976,021
|
)
|
|
$
|
2,810,852
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts payable
|
|
$
|
2,822
|
|
|
$
|
9,418
|
|
|
$
|
29,964
|
|
|
$
|
3,046
|
|
|
$
|
—
|
|
|
$
|
45,250
|
|
Accrued interest payable
|
|
—
|
|
|
8,399
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,399
|
|
||||||
Other accrued liabilities
|
|
13,722
|
|
|
2,721
|
|
|
55,162
|
|
|
7,070
|
|
|
—
|
|
|
78,675
|
|
||||||
Total current liabilities
|
|
16,544
|
|
|
20,538
|
|
|
85,126
|
|
|
10,116
|
|
|
—
|
|
|
132,324
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term debt
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Principal amount
|
|
—
|
|
|
1,437,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,437,000
|
|
||||||
Less unamortized debt costs
|
|
—
|
|
|
(21,421
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(21,421
|
)
|
||||||
Long-term debt, net
|
|
—
|
|
|
1,415,579
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,415,579
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deferred income tax liabilities
|
|
—
|
|
|
61,047
|
|
|
398,380
|
|
|
353
|
|
|
—
|
|
|
459,780
|
|
||||||
Other long-term liabilities
|
|
—
|
|
|
—
|
|
|
3,264
|
|
|
48
|
|
|
—
|
|
|
3,312
|
|
||||||
Intercompany payables
|
|
2,376,349
|
|
|
1,249,872
|
|
|
1,945,431
|
|
|
83,228
|
|
|
(5,654,880
|
)
|
|
—
|
|
||||||
Total Liabilities
|
|
2,392,893
|
|
|
2,747,036
|
|
|
2,432,201
|
|
|
93,745
|
|
|
(5,654,880
|
)
|
|
2,010,995
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Common stock
|
|
532
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
532
|
|
||||||
Additional paid-in capital
|
|
455,684
|
|
|
1,280,947
|
|
|
1,359,921
|
|
|
78,774
|
|
|
(2,719,642
|
)
|
|
455,684
|
|
||||||
Treasury stock, at cost
|
|
(6,594
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,594
|
)
|
||||||
Accumulated other comprehensive (loss) income, net of tax
|
|
(35,382
|
)
|
|
(35,382
|
)
|
|
(35,382
|
)
|
|
(35,382
|
)
|
|
106,146
|
|
|
(35,382
|
)
|
||||||
Retained earnings (accumulated deficit)
|
|
385,617
|
|
|
369,654
|
|
|
306,997
|
|
|
30,994
|
|
|
(707,645
|
)
|
|
385,617
|
|
||||||
Total Stockholders' Equity
|
|
799,857
|
|
|
1,615,219
|
|
|
1,631,536
|
|
|
74,386
|
|
|
(3,321,141
|
)
|
|
799,857
|
|
||||||
Total Liabilities and Stockholders' Equity
|
|
$
|
3,192,750
|
|
|
$
|
4,362,255
|
|
|
$
|
4,063,737
|
|
|
$
|
168,131
|
|
|
$
|
(8,976,021
|
)
|
|
$
|
2,810,852
|
|
(In thousands)
|
|
Prestige
Brands
Holdings,
Inc.
|
|
Prestige
Brands, Inc., the issuer |
|
Combined
Subsidiary
Guarantors
|
|
Combined
Non-
Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
|
$
|
4,440
|
|
|
$
|
—
|
|
|
$
|
2,899
|
|
|
$
|
19,891
|
|
|
$
|
—
|
|
|
$
|
27,230
|
|
Accounts receivable, net
|
|
—
|
|
|
12,025
|
|
|
74,446
|
|
|
8,776
|
|
|
—
|
|
|
95,247
|
|
||||||
Inventories
|
|
—
|
|
|
9,411
|
|
|
72,296
|
|
|
10,088
|
|
|
(532
|
)
|
|
91,263
|
|
||||||
Deferred income tax assets
|
|
316
|
|
|
681
|
|
|
8,293
|
|
|
818
|
|
|
—
|
|
|
10,108
|
|
||||||
Prepaid expenses and other current assets
|
|
15,311
|
|
|
257
|
|
|
8,379
|
|
|
1,218
|
|
|
—
|
|
|
25,165
|
|
||||||
Total current assets
|
|
20,067
|
|
|
22,374
|
|
|
166,313
|
|
|
40,791
|
|
|
(532
|
)
|
|
249,013
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property and equipment, net
|
|
9,166
|
|
|
210
|
|
|
5,528
|
|
|
636
|
|
|
—
|
|
|
15,540
|
|
||||||
Goodwill
|
|
—
|
|
|
66,007
|
|
|
271,409
|
|
|
22,775
|
|
|
—
|
|
|
360,191
|
|
||||||
Intangible assets, net
|
|
—
|
|
|
191,789
|
|
|
2,042,640
|
|
|
88,294
|
|
|
—
|
|
|
2,322,723
|
|
||||||
Other long-term assets
|
|
—
|
|
|
1,324
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,324
|
|
||||||
Intercompany receivables
|
|
1,457,011
|
|
|
2,703,192
|
|
|
1,083,488
|
|
|
10,738
|
|
|
(5,254,429
|
)
|
|
—
|
|
||||||
Investment in subsidiary
|
|
1,641,477
|
|
|
1,527,718
|
|
|
81,545
|
|
|
—
|
|
|
(3,250,740
|
)
|
|
—
|
|
||||||
Total Assets
|
|
$
|
3,127,721
|
|
|
$
|
4,512,614
|
|
|
$
|
3,650,923
|
|
|
$
|
163,234
|
|
|
$
|
(8,505,701
|
)
|
|
$
|
2,948,791
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts payable
|
|
$
|
2,914
|
|
|
$
|
7,643
|
|
|
$
|
24,437
|
|
|
$
|
3,302
|
|
|
$
|
—
|
|
|
$
|
38,296
|
|
Accrued interest payable
|
|
—
|
|
|
8,664
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,664
|
|
||||||
Other accrued liabilities
|
|
12,285
|
|
|
1,714
|
|
|
38,734
|
|
|
6,991
|
|
|
—
|
|
|
59,724
|
|
||||||
Total current liabilities
|
|
15,199
|
|
|
18,021
|
|
|
63,171
|
|
|
10,293
|
|
|
—
|
|
|
106,684
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term debt
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Principal amount
|
|
—
|
|
|
1,652,500
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,652,500
|
|
||||||
Less unamortized debt costs
|
|
—
|
|
|
(27,191
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(27,191
|
)
|
||||||
Long-term debt, net
|
|
—
|
|
|
1,625,309
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,625,309
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deferred income tax liabilities
|
|
—
|
|
|
60,317
|
|
|
408,893
|
|
|
412
|
|
|
—
|
|
|
469,622
|
|
||||||
Other long-term liabilities
|
|
—
|
|
|
—
|
|
|
2,682
|
|
|
158
|
|
|
—
|
|
|
2,840
|
|
||||||
Intercompany payables
|
|
2,368,186
|
|
|
1,241,084
|
|
|
1,570,265
|
|
|
74,894
|
|
|
(5,254,429
|
)
|
|
—
|
|
||||||
Total Liabilities
|
|
2,383,385
|
|
|
2,944,731
|
|
|
2,045,011
|
|
|
85,757
|
|
|
(5,254,429
|
)
|
|
2,204,455
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Common stock
|
|
530
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
530
|
|
||||||
Additional paid-in capital
|
|
445,182
|
|
|
1,280,947
|
|
|
1,359,921
|
|
|
78,774
|
|
|
(2,719,642
|
)
|
|
445,182
|
|
||||||
Treasury stock, at cost
|
|
(5,163
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,163
|
)
|
||||||
Accumulated other comprehensive income (loss), net of tax
|
|
(23,525
|
)
|
|
(23,525
|
)
|
|
(23,525
|
)
|
|
(23,525
|
)
|
|
70,575
|
|
|
(23,525
|
)
|
||||||
Retained earnings (accumulated deficit)
|
|
327,312
|
|
|
310,461
|
|
|
269,516
|
|
|
22,228
|
|
|
(602,205
|
)
|
|
327,312
|
|
||||||
Total Stockholders' Equity
|
|
744,336
|
|
|
1,567,883
|
|
|
1,605,912
|
|
|
77,477
|
|
|
(3,251,272
|
)
|
|
744,336
|
|
||||||
Total Liabilities and Stockholders' Equity
|
|
$
|
3,127,721
|
|
|
$
|
4,512,614
|
|
|
$
|
3,650,923
|
|
|
$
|
163,234
|
|
|
$
|
(8,505,701
|
)
|
|
$
|
2,948,791
|
|
(In thousands)
|
|
Prestige
Brands
Holdings,
Inc.
|
|
Prestige
Brands, Inc., the issuer |
|
Combined
Subsidiary
Guarantors
|
|
Combined
Non-
Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss)
|
|
$
|
58,305
|
|
|
$
|
59,193
|
|
|
$
|
37,481
|
|
|
$
|
8,766
|
|
|
$
|
(105,440
|
)
|
|
$
|
58,305
|
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Depreciation and amortization
|
|
2,474
|
|
|
456
|
|
|
15,410
|
|
|
360
|
|
|
—
|
|
|
18,700
|
|
||||||
Loss on divestitures and sales of property and equipment
|
|
|
|
|
—
|
|
|
51,807
|
|
|
—
|
|
|
—
|
|
|
51,807
|
|
||||||
Deferred income taxes
|
|
(2,056
|
)
|
|
493
|
|
|
(11,101
|
)
|
|
134
|
|
|
—
|
|
|
(12,530
|
)
|
||||||
Amortization of debt origination costs
|
|
—
|
|
|
6,129
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,129
|
|
||||||
Stock-based compensation costs
|
|
6,260
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,260
|
|
||||||
Equity in income of subsidiaries
|
|
(59,111
|
)
|
|
(37,390
|
)
|
|
(8,766
|
)
|
|
—
|
|
|
105,267
|
|
|
—
|
|
||||||
Changes in operating assets and liabilities, net of effects from acquisitions:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts receivable
|
|
—
|
|
|
(266
|
)
|
|
(5,481
|
)
|
|
(6,627
|
)
|
|
—
|
|
|
(12,374
|
)
|
||||||
Inventories
|
|
—
|
|
|
(7,347
|
)
|
|
(9,409
|
)
|
|
(6
|
)
|
|
173
|
|
|
(16,589
|
)
|
||||||
Prepaid expenses and other current assets
|
|
11,200
|
|
|
99
|
|
|
(525
|
)
|
|
375
|
|
|
—
|
|
|
11,149
|
|
||||||
Accounts payable
|
|
(118
|
)
|
|
1,775
|
|
|
5,981
|
|
|
(470
|
)
|
|
—
|
|
|
7,168
|
|
||||||
Accrued liabilities
|
|
1,437
|
|
|
742
|
|
|
20,995
|
|
|
(851
|
)
|
|
—
|
|
|
22,323
|
|
||||||
Net cash provided by operating activities
|
|
18,391
|
|
|
23,884
|
|
|
96,392
|
|
|
1,681
|
|
|
—
|
|
|
140,348
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Purchases of property and equipment
|
|
(890
|
)
|
|
(158
|
)
|
|
(785
|
)
|
|
(102
|
)
|
|
—
|
|
|
(1,935
|
)
|
||||||
Proceeds from divestitures
|
|
—
|
|
|
—
|
|
|
110,717
|
|
|
—
|
|
|
—
|
|
|
110,717
|
|
||||||
Proceeds from the sales of property and equipment
|
|
—
|
|
|
—
|
|
|
85
|
|
|
—
|
|
|
—
|
|
|
85
|
|
||||||
Proceeds from DenTek working capital arbitration settlement
|
|
—
|
|
|
—
|
|
|
1,419
|
|
|
—
|
|
|
—
|
|
|
1,419
|
|
||||||
Net cash provided by (used in) investing activities
|
|
(890
|
)
|
|
(158
|
)
|
|
111,436
|
|
|
(102
|
)
|
|
—
|
|
|
110,286
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Term loan repayments
|
|
—
|
|
|
(130,500
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(130,500
|
)
|
||||||
Borrowings under revolving credit agreement
|
|
—
|
|
|
20,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,000
|
|
||||||
Repayments under revolving credit agreement
|
|
—
|
|
|
(105,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(105,000
|
)
|
||||||
Payments of debt origination costs
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
||||||
Proceeds from exercise of stock options
|
|
3,444
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,444
|
|
||||||
Excess tax benefits from share-based awards
|
|
800
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
800
|
|
||||||
Fair value of shares surrendered as payment of tax withholding
|
|
(1,431
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,431
|
)
|
||||||
Intercompany activity, net
|
|
12,067
|
|
|
191,783
|
|
|
(210,525
|
)
|
|
6,675
|
|
|
—
|
|
|
—
|
|
||||||
Net cash (used in) provided by financing activities
|
|
14,880
|
|
|
(23,726
|
)
|
|
(210,525
|
)
|
|
6,675
|
|
|
—
|
|
|
(212,696
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Effect of exchange rate changes on cash and cash equivalents
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,879
|
)
|
|
—
|
|
|
(1,879
|
)
|
||||||
Increase (decrease) in cash and cash equivalents
|
|
32,381
|
|
|
—
|
|
|
(2,697
|
)
|
|
6,375
|
|
|
—
|
|
|
36,059
|
|
||||||
Cash and cash equivalents - beginning of period
|
|
4,440
|
|
|
—
|
|
|
2,899
|
|
|
19,891
|
|
|
—
|
|
|
27,230
|
|
||||||
Cash and cash equivalents - end of period
|
|
$
|
36,821
|
|
|
$
|
—
|
|
|
$
|
202
|
|
|
$
|
26,266
|
|
|
$
|
—
|
|
|
$
|
63,289
|
|
(In thousands)
|
|
Prestige Brands Holdings, Inc.
|
|
Prestige
Brands, Inc., the issuer |
|
Combined Subsidiary Guarantors
|
|
Combined Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss)
|
|
$
|
85,971
|
|
|
$
|
78,127
|
|
|
$
|
58,860
|
|
|
$
|
6,868
|
|
|
$
|
(143,855
|
)
|
|
$
|
85,971
|
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Depreciation and amortization
|
|
3,032
|
|
|
444
|
|
|
13,686
|
|
|
316
|
|
|
—
|
|
|
17,478
|
|
||||||
Deferred income taxes
|
|
148
|
|
|
164
|
|
|
31,301
|
|
|
(22
|
)
|
|
—
|
|
|
31,591
|
|
||||||
Amortization of debt origination costs
|
|
—
|
|
|
5,433
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,433
|
|
||||||
Stock-based compensation costs
|
|
7,057
|
|
|
—
|
|
|
—
|
|
|
41
|
|
|
—
|
|
|
7,098
|
|
||||||
Loss on extinguishment of debt
|
|
—
|
|
|
451
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
451
|
|
||||||
Gain on sale or disposal of property and equipment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(36
|
)
|
|
—
|
|
|
(36
|
)
|
||||||
Equity in income of subsidiaries
|
|
(84,458
|
)
|
|
(52,599
|
)
|
|
(6,868
|
)
|
|
—
|
|
|
143,925
|
|
|
—
|
|
||||||
Changes in operating assets and liabilities, net of effects from acquisitions:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts receivable
|
|
—
|
|
|
1,158
|
|
|
2,188
|
|
|
(893
|
)
|
|
—
|
|
|
2,453
|
|
||||||
Inventories
|
|
—
|
|
|
(2,519
|
)
|
|
(3,014
|
)
|
|
(1,511
|
)
|
|
(70
|
)
|
|
(7,114
|
)
|
||||||
Prepaid expenses and other current assets
|
|
3,557
|
|
|
(305
|
)
|
|
2,752
|
|
|
(532
|
)
|
|
—
|
|
|
5,472
|
|
||||||
Accounts payable
|
|
(33
|
)
|
|
(1,161
|
)
|
|
(14,613
|
)
|
|
(1,746
|
)
|
|
—
|
|
|
(17,553
|
)
|
||||||
Accrued liabilities
|
|
(102
|
)
|
|
(1,636
|
)
|
|
5,439
|
|
|
1,506
|
|
|
—
|
|
|
5,207
|
|
||||||
Net cash provided by operating activities
|
|
15,172
|
|
|
27,557
|
|
|
89,731
|
|
|
3,991
|
|
|
—
|
|
|
136,451
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Purchases of property and equipment
|
|
(1,741
|
)
|
|
(93
|
)
|
|
(212
|
)
|
|
(494
|
)
|
|
—
|
|
|
(2,540
|
)
|
||||||
Proceeds from the sale of property and equipment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
344
|
|
|
—
|
|
|
344
|
|
||||||
Proceeds from Insight Pharmaceuticals working capital arbitration settlement
|
|
—
|
|
|
—
|
|
|
7,237
|
|
|
—
|
|
|
—
|
|
|
7,237
|
|
||||||
Net cash provided by (used in) investing activities
|
|
(1,741
|
)
|
|
(93
|
)
|
|
7,025
|
|
|
(150
|
)
|
|
—
|
|
|
5,041
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Term loan repayments
|
|
—
|
|
|
(50,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(50,000
|
)
|
||||||
Borrowings under revolving credit agreement
|
|
—
|
|
|
15,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,000
|
|
||||||
Repayments under revolving credit agreement
|
|
—
|
|
|
(81,100
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(81,100
|
)
|
||||||
Payments of debt origination costs
|
|
—
|
|
|
(4,211
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,211
|
)
|
||||||
Proceeds from exercise of stock options
|
|
6,600
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,600
|
|
||||||
Proceeds from restricted stock exercises
|
|
544
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
544
|
|
||||||
Excess tax benefits from share-based awards
|
|
1,850
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,850
|
|
||||||
Fair value of shares surrendered as payment of tax withholding
|
|
(2,187
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,187
|
)
|
||||||
Intercompany activity, net
|
|
2,127
|
|
|
92,847
|
|
|
(96,756
|
)
|
|
1,782
|
|
|
—
|
|
|
—
|
|
||||||
Net cash (used in) provided by financing activities
|
|
8,934
|
|
|
(27,464
|
)
|
|
(96,756
|
)
|
|
1,782
|
|
|
—
|
|
|
(113,504
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Effect of exchange rate changes on cash and cash equivalents
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(333
|
)
|
|
—
|
|
|
(333
|
)
|
||||||
Increase in cash and cash equivalents
|
|
22,365
|
|
|
—
|
|
|
—
|
|
|
5,290
|
|
|
—
|
|
|
27,655
|
|
||||||
Cash and cash equivalents - beginning of period
|
|
11,387
|
|
|
—
|
|
|
—
|
|
|
9,931
|
|
|
—
|
|
|
21,318
|
|
||||||
Cash and cash equivalents - end of period
|
|
$
|
33,752
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15,221
|
|
|
$
|
—
|
|
|
$
|
48,973
|
|
ITEM 2.
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
See also “Cautionary Statement Regarding Forward-Looking Statements” on page
65
of this Quarterly Report on Form 10-Q.
|
(In thousands)
|
February 5, 2016
|
||
|
|
||
Cash acquired
|
$
|
1,359
|
|
Accounts receivable
|
9,187
|
|
|
Inventories
|
14,304
|
|
|
Deferred income taxes
|
3,303
|
|
|
Prepaids and other current assets
|
6,728
|
|
|
Property, plant and equipment, net
|
3,555
|
|
|
Goodwill
|
73,737
|
|
|
Intangible assets, net
|
206,700
|
|
|
Total assets acquired
|
318,873
|
|
|
|
|
||
Accounts payable
|
3,261
|
|
|
Accrued expenses
|
14,336
|
|
|
Deferred income tax liabilities - long term
|
74,352
|
|
|
Total liabilities assumed
|
91,949
|
|
|
Total purchase price
|
$
|
226,924
|
|
(In thousands)
|
July 7,
2016 |
||
Components of assets sold:
|
|
||
Inventory
|
$
|
2,380
|
|
Intangible assets, net
|
91,208
|
|
|
Goodwill
|
2,920
|
|
|
Assets sold
|
96,508
|
|
|
Total purchase price received
|
42,380
|
|
|
|
54,128
|
|
|
Costs to sell
|
2,018
|
|
|
Pre-tax loss on divestitures
|
$
|
56,146
|
|
(In thousands)
|
December 2016
|
||
Components of assets sold:
|
|
||
Inventory
|
$
|
2,998
|
|
Intangible assets, net
|
45,870
|
|
|
Goodwill
|
6,889
|
|
|
Assets sold
|
55,757
|
|
|
Total purchase price received
|
59,614
|
|
|
Pre-tax net (gain) on divestitures
|
$
|
(3,857
|
)
|
|
Three Months Ended December 31,
|
||||||||||||
|
|
|
|
|
Increase (Decrease)
|
||||||||
(In thousands)
|
2016
|
%
|
2015*
|
%
|
Amount
|
%
|
|||||||
North American OTC Healthcare
|
|
|
|
|
|
||||||||
Analgesics
|
$
|
32,439
|
|
15.0
|
$
|
30,454
|
|
15.2
|
$
|
1,985
|
|
6.5
|
|
Cough & Cold
|
29,803
|
|
13.7
|
30,466
|
|
15.2
|
(663
|
)
|
(2.2
|
)
|
|||
Women's Health
|
30,896
|
|
14.3
|
33,521
|
|
16.7
|
(2,625
|
)
|
(7.8
|
)
|
|||
Gastrointestinal
|
15,109
|
|
7.0
|
17,401
|
|
8.7
|
(2,292
|
)
|
(13.2
|
)
|
|||
Eye & Ear Care
|
23,571
|
|
10.9
|
21,936
|
|
10.9
|
1,635
|
|
7.5
|
|
|||
Dermatologicals
|
19,948
|
|
9.2
|
19,734
|
|
9.9
|
214
|
|
1.1
|
|
|||
Oral Care
|
24,129
|
|
11.1
|
9,996
|
|
5.0
|
14,133
|
|
(nm)
|
|
|||
Other OTC
|
1,378
|
|
0.6
|
1,551
|
|
0.8
|
(173
|
)
|
(11.2
|
)
|
|||
Total North American OTC Healthcare
|
177,273
|
|
81.8
|
165,059
|
|
82.4
|
12,214
|
|
7.4
|
|
|||
|
|
|
|
|
|
|
|||||||
International OTC Healthcare
|
|
|
|
|
|
||||||||
Analgesics
|
444
|
|
0.2
|
450
|
|
0.2
|
(6
|
)
|
(1.3
|
)
|
|||
Cough & Cold
|
4,166
|
|
1.9
|
3,696
|
|
1.8
|
470
|
|
12.7
|
|
|||
Women's Health
|
580
|
|
0.3
|
877
|
|
0.4
|
(297
|
)
|
(33.9
|
)
|
|||
Gastrointestinal
|
6,701
|
|
3.1
|
5,517
|
|
2.8
|
1,184
|
|
21.5
|
|
|||
Eye & Ear Care
|
2,997
|
|
1.4
|
2,613
|
|
1.3
|
384
|
|
14.7
|
|
|||
Dermatologicals
|
479
|
|
0.2
|
524
|
|
0.3
|
(45
|
)
|
(8.6
|
)
|
|||
Oral Care
|
3,083
|
|
1.4
|
126
|
|
0.1
|
2,957
|
|
(nm)
|
|
|||
Other OTC
|
9
|
|
—
|
9
|
|
—
|
—
|
|
—
|
|
|||
Total International OTC Healthcare
|
18,459
|
|
8.5
|
13,812
|
|
6.9
|
4,647
|
|
33.6
|
|
|||
|
|
|
|
|
|
|
|||||||
Total OTC Healthcare
|
195,732
|
|
90.3
|
178,871
|
|
89.3
|
16,861
|
|
9.4
|
|
|||
Household Cleaning
|
21,031
|
|
9.7
|
21,324
|
|
10.7
|
(293
|
)
|
(1.4
|
)
|
|||
Total Consolidated
|
$
|
216,763
|
|
100.0
|
$
|
200,195
|
|
100.0
|
$
|
16,568
|
|
8.3
|
|
|
Three Months Ended December 31,
|
||||||||||||||||
(In thousands)
|
|
|
|
|
|
|
|
|
Increase (Decrease)
|
||||||||
Cost of Sales
|
2016
|
|
%
|
|
2015*
|
|
%
|
|
Amount
|
|
%
|
||||||
North American OTC Healthcare
|
$
|
68,378
|
|
|
38.6
|
|
$
|
62,655
|
|
|
38.0
|
|
$
|
5,723
|
|
|
9.1
|
International OTC Healthcare
|
7,678
|
|
|
41.6
|
|
4,964
|
|
|
35.9
|
|
2,714
|
|
|
54.7
|
|||
Household Cleaning
|
16,160
|
|
|
76.8
|
|
15,792
|
|
|
74.1
|
|
368
|
|
|
2.3
|
|||
|
$
|
92,216
|
|
|
42.5
|
|
$
|
83,411
|
|
|
41.7
|
|
$
|
8,805
|
|
|
10.6
|
|
Three Months Ended December 31,
|
|||||||||||||||||
(In thousands)
|
|
|
|
|
|
|
|
|
Increase (Decrease)
|
|||||||||
Gross Profit
|
2016
|
|
%
|
|
2015*
|
|
%
|
|
Amount
|
|
%
|
|||||||
North American OTC Healthcare
|
$
|
108,895
|
|
|
61.4
|
|
$
|
102,404
|
|
|
62.0
|
|
$
|
6,491
|
|
|
6.3
|
|
International OTC Healthcare
|
10,781
|
|
|
58.4
|
|
8,848
|
|
|
64.1
|
|
1,933
|
|
|
21.8
|
|
|||
Household Cleaning
|
4,871
|
|
|
23.2
|
|
5,532
|
|
|
25.9
|
|
(661
|
)
|
|
(11.9
|
)
|
|||
|
$
|
124,547
|
|
|
57.5
|
|
$
|
116,784
|
|
|
58.3
|
|
$
|
7,763
|
|
|
6.6
|
|
|
Three Months Ended December 31,
|
|||||||||||||||||
(In thousands)
|
|
|
|
|
|
|
|
|
Increase (Decrease)
|
|||||||||
Contribution Margin
|
2016
|
|
%
|
|
2015*
|
|
%
|
|
Amount
|
|
%
|
|||||||
North American OTC Healthcare
|
$
|
82,095
|
|
|
46.3
|
|
$
|
75,932
|
|
|
46.0
|
|
$
|
6,163
|
|
|
8.1
|
|
International OTC Healthcare
|
7,279
|
|
|
39.4
|
|
6,010
|
|
|
43.5
|
|
1,269
|
|
|
21.1
|
|
|||
Household Cleaning
|
4,491
|
|
|
21.4
|
|
4,907
|
|
|
23.0
|
|
(416
|
)
|
|
(8.5
|
)
|
|||
|
$
|
93,865
|
|
|
43.3
|
|
$
|
86,849
|
|
|
43.4
|
|
$
|
7,016
|
|
|
8.1
|
|
|
Nine Months Ended December 31,
|
||||||||||||
|
|
|
|
|
Increase (Decrease)
|
||||||||
(In thousands)
|
2016
|
%
|
2015*
|
%
|
Amount
|
%
|
|||||||
North American OTC Healthcare
|
|
|
|
|
|
||||||||
Analgesics
|
$
|
90,558
|
|
14.1
|
$
|
86,996
|
|
14.5
|
$
|
3,562
|
|
4.1
|
|
Cough & Cold
|
68,876
|
|
10.7
|
74,681
|
|
12.5
|
(5,805
|
)
|
(7.8
|
)
|
|||
Women's Health
|
97,051
|
|
15.1
|
100,036
|
|
16.7
|
(2,985
|
)
|
(3.0
|
)
|
|||
Gastrointestinal
|
50,495
|
|
7.9
|
56,782
|
|
9.5
|
(6,287
|
)
|
(11.1
|
)
|
|||
Eye & Ear Care
|
72,512
|
|
11.3
|
71,159
|
|
12.0
|
1,353
|
|
1.9
|
|
|||
Dermatologicals
|
65,598
|
|
10.2
|
63,026
|
|
10.5
|
2,572
|
|
4.1
|
|
|||
Oral Care
|
72,308
|
|
11.3
|
29,706
|
|
5.0
|
42,602
|
|
(nm)
|
|
|||
Other OTC
|
4,402
|
|
0.7
|
4,466
|
|
0.7
|
(64
|
)
|
(1.4
|
)
|
|||
Total North American OTC Healthcare
|
521,800
|
|
81.3
|
486,852
|
|
81.4
|
34,948
|
|
7.2
|
|
|||
|
|
|
|
|
|
|
|||||||
International OTC Healthcare
|
|
|
|
|
|
||||||||
Analgesics
|
1,515
|
|
0.2
|
1,668
|
|
0.3
|
(153
|
)
|
(9.2
|
)
|
|||
Cough & Cold
|
13,718
|
|
2.1
|
12,948
|
|
2.2
|
770
|
|
5.9
|
|
|||
Women's Health
|
2,151
|
|
0.3
|
2,381
|
|
0.4
|
(230
|
)
|
(9.7
|
)
|
|||
Gastrointestinal
|
17,045
|
|
2.7
|
14,667
|
|
2.3
|
2,378
|
|
16.2
|
|
|||
Eye & Ear Care
|
8,782
|
|
1.4
|
9,393
|
|
1.6
|
(611
|
)
|
(6.5
|
)
|
|||
Dermatologicals
|
1,717
|
|
0.3
|
1,669
|
|
0.3
|
48
|
|
2.9
|
|
|||
Oral Care
|
8,120
|
|
1.3
|
509
|
|
0.1
|
7,611
|
|
(nm)
|
|
|||
Other OTC
|
19
|
|
—
|
18
|
|
—
|
1
|
|
5.6
|
|
|||
Total International OTC Healthcare
|
53,067
|
|
8.3
|
43,253
|
|
7.2
|
9,814
|
|
22.7
|
|
|||
|
|
|
|
|
|
|
|||||||
Total OTC Healthcare
|
574,867
|
|
89.6
|
530,105
|
|
88.6
|
44,762
|
|
8.4
|
|
|||
Household Cleaning
|
66,523
|
|
10.4
|
68,287
|
|
11.4
|
(1,764
|
)
|
(2.6
|
)
|
|||
Total Consolidated
|
$
|
641,390
|
|
100.0
|
$
|
598,392
|
|
100.0
|
$
|
42,998
|
|
7.2
|
|
|
Nine Months Ended December 31,
|
||||||||||||||||
(In thousands)
|
|
|
|
|
|
|
|
|
Increase (Decrease)
|
||||||||
Cost of Sales
|
2016
|
|
%
|
|
2015*
|
|
%
|
|
Amount
|
|
%
|
||||||
North American OTC Healthcare
|
$
|
198,014
|
|
|
37.9
|
|
$
|
182,279
|
|
|
37.4
|
|
$
|
15,735
|
|
|
8.6
|
International OTC Healthcare
|
21,722
|
|
|
40.9
|
|
16,347
|
|
|
37.8
|
|
5,375
|
|
|
32.9
|
|||
Household Cleaning
|
51,551
|
|
|
77.5
|
|
50,806
|
|
|
74.4
|
|
745
|
|
|
1.5
|
|||
|
$
|
271,287
|
|
|
42.3
|
|
$
|
249,432
|
|
|
41.7
|
|
$
|
21,855
|
|
|
8.8
|
|
Nine Months Ended December 31,
|
|||||||||||||||||
(In thousands)
|
|
|
|
|
|
|
|
|
Increase (Decrease)
|
|||||||||
Gross Profit
|
2016
|
|
%
|
|
2015*
|
|
%
|
|
Amount
|
|
%
|
|||||||
North American OTC Healthcare
|
$
|
323,786
|
|
|
62.1
|
|
$
|
304,573
|
|
|
62.6
|
|
$
|
19,213
|
|
|
6.3
|
|
International OTC Healthcare
|
31,345
|
|
|
59.1
|
|
26,906
|
|
|
62.2
|
|
4,439
|
|
|
16.5
|
|
|||
Household Cleaning
|
14,972
|
|
|
22.5
|
|
17,481
|
|
|
25.6
|
|
(2,509
|
)
|
|
(14.4
|
)
|
|||
|
$
|
370,103
|
|
|
57.7
|
|
$
|
348,960
|
|
|
58.3
|
|
$
|
21,143
|
|
|
6.1
|
|
|
Nine Months Ended December 31,
|
|||||||||||||||||
(In thousands)
|
|
|
|
|
|
|
|
|
Increase (Decrease)
|
|||||||||
Contribution Margin
|
2016
|
|
%
|
|
2015*
|
|
%
|
|
Amount
|
|
%
|
|||||||
North American OTC Healthcare
|
$
|
247,135
|
|
|
47.4
|
|
$
|
230,466
|
|
|
47.3
|
|
$
|
16,669
|
|
|
7.2
|
|
International OTC Healthcare
|
22,475
|
|
|
42.4
|
|
18,568
|
|
|
42.9
|
|
3,907
|
|
|
21.0
|
|
|||
Household Cleaning
|
13,584
|
|
|
20.4
|
|
15,676
|
|
|
23.0
|
|
(2,092
|
)
|
|
(13.3
|
)
|
|||
|
$
|
283,194
|
|
|
44.2
|
|
$
|
264,710
|
|
|
44.2
|
|
$
|
18,484
|
|
|
7.0
|
|
|
Nine Months Ended December 31,
|
||||||
(In thousands)
|
2016
|
|
2015
|
||||
Cash provided by (used in):
|
|
|
|
||||
Operating Activities
|
$
|
140,348
|
|
|
$
|
136,451
|
|
Investing Activities
|
110,286
|
|
|
5,041
|
|
||
Financing Activities
|
(212,696
|
)
|
|
(113,504
|
)
|
•
|
$400.0 million
of 5.375% 2013 Senior Notes due 2021;
|
•
|
$350.0 million
of 6.375% 2016 Senior Notes due 2024;
|
•
|
$687.0 million
of borrowings under the Term B-3 Loans; and
|
•
|
$0.0 million
of borrowings under the 2012 ABL Revolver.
|
•
|
Have a leverage ratio of less than
6.25 to 1.0
for the quarter ended
December 31, 2016
(defined as, with certain adjustments, the ratio of our consolidated total net debt as of the last day of the fiscal quarter to our trailing twelve month consolidated net income before interest, taxes, depreciation, amortization, non-cash charges and certain other items (“EBITDA”)). Our leverage ratio requirement decreases over time to
3.75 to 1.0
for the quarter ending March 31, 2019 and remains level thereafter;
|
•
|
Have an interest coverage ratio of greater than
2.75 to 1.0
for the quarter ended
December 31, 2016
(defined as, with certain adjustments, the ratio of our consolidated EBITDA to our trailing twelve month consolidated cash interest expense). Our interest coverage requirement increases over time to
3.50 to 1.0
for the quarter ending March 31, 2018 and remains level thereafter; and
|
•
|
Have a fixed charge ratio of greater than
1.0 to 1.0
for the quarter ended
December 31, 2016
(defined as, with certain adjustments, the ratio of our consolidated EBITDA minus capital expenditures to our trailing twelve month consolidated
|
(In thousands)
|
North American OTC
Healthcare |
|
International OTC
Healthcare |
|
Household
Cleaning
|
|
Consolidated
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
$
|
318,014
|
|
|
$
|
21,226
|
|
|
$
|
6,245
|
|
|
$
|
345,485
|
|
|
|
|
|
|
|
|
|
|
|||||||
Intangible assets, net
|
|
|
|
|
|
|
|
|
|||||||
Indefinite-lived:
|
|
|
|
|
|
|
|
|
|||||||
Analgesics
|
308,204
|
|
|
1,946
|
|
|
—
|
|
|
310,150
|
|
||||
Cough & Cold
|
138,946
|
|
|
18,089
|
|
|
—
|
|
|
157,035
|
|
||||
Women's Health
|
532,300
|
|
|
1,585
|
|
|
—
|
|
|
533,885
|
|
||||
Gastrointestinal
|
213,639
|
|
|
57,222
|
|
|
—
|
|
|
270,861
|
|
||||
Eye & Ear Care
|
172,318
|
|
|
—
|
|
|
—
|
|
|
172,318
|
|
||||
Dermatologicals
|
148,990
|
|
|
1,874
|
|
|
—
|
|
|
150,864
|
|
||||
Oral Care
|
241,238
|
|
|
—
|
|
|
—
|
|
|
241,238
|
|
||||
Household Cleaning
|
—
|
|
|
—
|
|
|
101,262
|
|
|
101,262
|
|
||||
Total indefinite-lived intangible assets, net
|
1,755,635
|
|
|
80,716
|
|
|
101,262
|
|
|
1,937,613
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Finite-lived:
|
|
|
|
|
|
|
|
|
|||||||
Analgesics
|
40,042
|
|
|
—
|
|
|
—
|
|
|
40,042
|
|
||||
Cough & Cold
|
27,050
|
|
|
580
|
|
|
—
|
|
|
27,630
|
|
||||
Women's Health
|
19,147
|
|
|
234
|
|
|
—
|
|
|
19,381
|
|
||||
Gastrointestinal
|
8,675
|
|
|
190
|
|
|
—
|
|
|
8,865
|
|
||||
Eye & Ear Care
|
27,234
|
|
|
—
|
|
|
—
|
|
|
27,234
|
|
||||
Dermatologicals
|
21,447
|
|
|
—
|
|
|
—
|
|
|
21,447
|
|
||||
Oral Care
|
38,787
|
|
|
—
|
|
|
—
|
|
|
38,787
|
|
||||
Other OTC
|
14,009
|
|
|
—
|
|
|
—
|
|
|
14,009
|
|
||||
Household Cleaning
|
—
|
|
|
—
|
|
|
21,370
|
|
|
21,370
|
|
||||
Total finite-lived intangible assets, net
|
196,391
|
|
|
1,004
|
|
|
21,370
|
|
|
218,765
|
|
||||
Total intangible assets, net
|
1,952,026
|
|
|
81,720
|
|
|
122,632
|
|
|
2,156,378
|
|
||||
Total goodwill and intangible assets, net
|
$
|
2,270,040
|
|
|
$
|
102,946
|
|
|
$
|
128,877
|
|
|
$
|
2,501,863
|
|
•
|
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, stock options, warrants or performance shares);
|
•
|
Strike price of the instrument;
|
•
|
Market price of our common stock on the date of grant;
|
•
|
Discount rates;
|
•
|
Duration of the instrument; and
|
•
|
Volatility of our 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.
|
•
|
The high level of competition in our industry and markets;
|
•
|
Our inability to increase organic growth via new product introductions, line extensions, increased spending on advertising and promotional support, and other new sales and marketing strategies;
|
•
|
Our inability to invest successfully in research and development;
|
•
|
Our dependence on a limited number of customers for a large portion of our sales;
|
•
|
Changes in inventory management practices by retailers;
|
•
|
Our inability to grow our international sales;
|
•
|
General economic conditions affecting sales of our products and their respective markets;
|
•
|
Economic factors, such as increases in interest rates and currency exchange rate fluctuations;
|
•
|
Business, regulatory and other conditions affecting retailers;
|
•
|
Changing consumer trends, additional store brand competition or other pricing pressures which may cause us to lower our prices;
|
•
|
Our dependence on third-party manufacturers to produce many of the products we sell;
|
•
|
Price increases for raw materials, labor, energy and transportation costs, and for other input costs;
|
•
|
Disruptions in our distribution center or manufacturing facility;
|
•
|
Acquisitions, dispositions or other strategic transactions diverting managerial resources, the incurrence of additional liabilities or integration problems associated with such transactions;
|
•
|
Actions of government agencies in connection with our products or regulatory matters governing our industry;
|
•
|
Product liability claims, product recalls and related negative publicity;
|
•
|
Our inability to protect our intellectual property rights;
|
•
|
Our dependence on third parties for intellectual property relating to some of the products we sell;
|
•
|
Our assets being comprised virtually entirely of goodwill and intangibles and possible changes in their value based on adverse operating results;
|
•
|
Our dependence on key personnel;
|
•
|
Shortages of supply of sourced goods or interruptions in the manufacturing of our products;
|
•
|
The costs associated with any claims in litigation or arbitration and any adverse judgments rendered in such litigation or arbitration;
|
•
|
Our level of indebtedness and possible inability to service our debt;
|
•
|
Our ability to obtain additional financing; and
|
•
|
The restrictions imposed by our financing agreements on our operations.
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
PART II.
|
OTHER INFORMATION
|
•
|
The timing of when we make acquisitions or introduce new products;
|
•
|
Our inability to increase the sales of our existing products and expand their distribution;
|
•
|
The timing of the introduction or return to the market of competitive products and the introduction of store brand products;
|
•
|
Inventory management resulting from consolidation among our customers;
|
•
|
Adverse regulatory or market events in the United States or in our international markets;
|
•
|
Changes in consumer preferences, spending habits and competitive conditions, including the effects of competitors’ operational, promotional or expansion activities;
|
•
|
Seasonality of our products;
|
•
|
Fluctuations in commodity prices, product costs, utilities and energy costs, prevailing wage rates, insurance costs and other costs;
|
•
|
The discontinuation and return of our products from retailers;
|
•
|
Our ability to recruit, train and retain qualified employees, and the costs associated with those activities;
|
•
|
Changes in advertising and promotional activities and expansion to new markets;
|
•
|
Negative publicity relating to us and the products we sell;
|
•
|
Litigation matters;
|
•
|
Unanticipated increases in infrastructure costs;
|
•
|
Impairment of goodwill or long-lived assets;
|
•
|
Changes in interest rates; and
|
•
|
Changes in accounting, tax, regulatory or other rules applicable to our business.
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Period
|
|
Total Number of Shares Purchased
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs
|
|||
October 1 to October 31, 2016
|
|
—
|
|
|
—
|
|
|
n/a
|
|
n/a
|
|
November 1 to November 30, 2016
|
|
780
|
|
|
$
|
45.83
|
|
|
n/a
|
|
n/a
|
December 1 to December 31, 2016
|
|
—
|
|
|
—
|
|
|
n/a
|
|
n/a
|
|
Total
|
|
780
|
|
|
|
|
n/a
|
|
n/a
|
|
|
PRESTIGE BRANDS HOLDINGS, INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
Date:
|
February 2, 2017
|
By:
|
/s/ Christine Sacco
|
|
|
|
|
Christine Sacco
|
|
|
|
|
Chief Financial Officer
|
|
|
|
|
(Principal Financial Officer and Duly Authorized Officer)
|
|
|
|
|
|
|
|
|
|
|
2.1
|
|
|
Agreement and Plan of Merger, dated as of December 22, 2016, by and among Medtech Products Inc., AETAGE LLC, C.B. Fleet TopCo, LLC and Gryphon Partners 3.5, L.P.
|
|
|
|
|
10.1
|
|
|
Executive Offer Letter dated as of November 14, 2016, by and between Prestige Brands Holdings, Inc. and William C. P'Pool.
|
|
|
|
|
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.
|
|
|
|
|
101.INS*
|
|
|
XBRL Instance Document
|
101.SCH*
|
|
|
XBRL Taxonomy Extension Schema Document
|
101.CAL*
|
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF*
|
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB*
|
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE*
|
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
* XBRL information is furnished and not filed for purposes of Section 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934, and is not subject to liability under those sections, is not part of any registration statement, prospectus or other document to which it relates and is not incorporated or deemed to be incorporated by reference into any registration statement, prospectus or other document.
|
|
|
|
|
i
|
|
|
ii
|
|
|
iii
|
|
|
iv
|
|
Exhibits
|
|
Exhibit A
|
Distribution Waterfall
|
Exhibit B
|
Form of Escrow Agreement
|
Exhibit C
|
Form of Certificate of Merger
|
Exhibit D
|
Form of Purchaser and Merger Sub Closing Certificate
|
Exhibit E
|
Form of Company Closing Certificate
|
Exhibit F
|
Form of Letter of Transmittal
|
Exhibit G
|
Restrictive Covenant Agreement
|
|
|
|
v
|
|
Schedules
|
Referenced in
:
|
Key Employees Schedule
|
Section 1.1
|
Permitted Liens Schedule
|
Section 1.1
|
Sellers’ Transaction Expenses Schedule
|
Section 1.1
|
Working Capital Schedule
|
Sections 1.1, 2.10(a), 2.10(b) and 2.10(c)
|
Governmental Licenses Schedule
|
Sections 1.1 and 5.12
|
Repaid Indebtedness Schedule
|
Section 2.9
|
Sellers Holdings Schedule
|
Section 2.10(c)(iii)
|
Related Party Agreements Schedule
|
Section 3.2(h)
|
Required Consents Schedule
|
Section 3.2(i)(viii)
|
Negative Covenants Schedule
|
Section 4.2
|
Contracts Schedule
|
Sections 4.2(b), 4.2(p), 4.2(o), 5.4, 5.7(k), 5.10(a), 5.10(a)(ix) and 5.10(b)
|
Material Restrictions Schedule
|
Sections 4.3 and 5.4
|
Capitalization Schedule
|
Sections 5.1(a) and 5.3
|
Company Organization Schedule
|
Section 5.1(b)
|
Financial Statements Schedule
|
Section 5.5
|
Liabilities Schedule
|
Section 5.6
|
Developments Schedule
|
Section 5.7
|
Leased Real Property Schedule
|
Section 5.8(a)
|
Owned Real Property Schedule
|
Section 5.8(b)
|
Customers and Suppliers Schedule
|
Section 5.10(c)
|
Proprietary Rights Schedule
|
Sections 5.11(a), 5.11(b), 5.11(c), 5.11(d), 5.11(e) and 5.11(g)
|
Litigation Schedule
|
Section 5.13
|
Compliance Schedule
|
Section 5.14
|
Environmental Matters Schedule
|
Section 5.15
|
Employees Schedule
|
Section 5.16(a)
|
Employee Benefits Schedule
|
Sections 5.17(a), 5.17(b) and 5.17(e)
|
Taxes Schedule
|
Section 5.18
|
Brokerage Schedule
|
Section 5.19
|
Insurance Schedule
|
Section 5.20
|
FDA/FTC Regulatory Compliance Schedule
|
Sections 5.24(a), 5.24(b), 5.24(c), 5.24(e), 5.24(f), 5.24(g), 5.24(h), 5.24(i) and 5.24(j)
|
Indebtedness Schedule
|
5.25
|
Violations Schedule
|
Section 6.3
|
Purchaser Brokerage Schedule
|
Section 6.6
|
Indemnity Claims Schedule
|
Section 8.10
|
Indemnification Schedule
|
Section 9.2(d)
|
|
vi
|
|
|
2
|
|
|
3
|
|
|
4
|
|
|
5
|
|
|
6
|
|
|
7
|
|
|
8
|
|
|
9
|
|
|
10
|
|
|
11
|
|
|
12
|
|
Term
|
Section
|
|
Accounting Arbitrator
|
2.10(c)(ii)
|
|
Actual Cash
|
2.10(b)
|
|
Actual Indebtedness
|
2.10(b)
|
|
Actual Sellers’ Transaction Expenses
|
2.10(b)
|
|
Actual Working Capital
|
2.10(b)
|
|
Adjusted Aggregate Initial Consideration
|
2.10(d)(i)
|
|
Adjustment Escrow Shortfall
|
2.10(d)(i)(B)
|
|
Agreement
|
Preamble
|
|
Alternative Arrangements
|
9.8(a)
|
|
Antitrust Law
|
4.5(a)
|
|
Applicable Percentage
|
2.10(c)(iii)
|
|
Authorized Action
|
8.6(g)
|
|
Basket
|
9.5(a)
|
|
Cap
|
9.5(b)
|
|
Certificate of Merger
|
2.2
|
|
Claim Deadline
|
9.1
|
|
Closing
|
2.2
|
|
Closing Date
|
2.2
|
|
Collection Expenses
|
9.8(a)
|
|
13
|
|
Term
|
Section
|
|
Company
|
Preamble
|
|
Company Board
|
Recitals
|
|
Company Parties
|
10.15
|
|
Company Parties
|
10.15
|
|
Company Unitholder Indemnifiable Losses
|
9.4
|
|
Company Unitholder Indemnified Parties
|
9.3
|
|
Confidentiality Agreement
|
8.2
|
|
Convertible Securities
|
5.3
|
|
Covenant Survival Termination Date
|
10.1
|
|
D&O Beneficiary
|
8.7(a)
|
|
D&O Claim
|
8.7(a)
|
|
D&O Insurance
|
8.7(a)
|
|
D&O Tail Policy
|
8.7(b)
|
|
Deal Communications
|
8.6(f)
|
|
Debt Commitment Letter
|
6.7
|
|
Direct Claim
|
9.7(b)
|
|
Dispute Notice
|
2.10(c)(ii)
|
|
DLLCA
|
Recitals
|
|
Downward Closing Working Capital Adjustment
|
1.1
|
|
Effective Time
|
2.2
|
|
Estimated Cash
|
2.10(a)
|
|
Estimated Indebtedness
|
2.10(a)
|
|
Estimated Sellers’ Transaction Expenses
|
2.10(a)
|
|
Estimated Working Capital
|
2.10(a)
|
|
Events
|
1.1
|
|
Existing Matter
|
4.7(a)
|
|
FD&C Act
|
5.24(b)
|
|
FDA Laws and Regulations
|
5.24(b)
|
|
Fee Letter
|
6.7
|
|
Final Cash
|
2.10(c)(i)
|
|
Final Indebtedness
|
2.10(c)(i)
|
|
Final Sellers’ Transaction Expenses
|
2.10(c)(i)
|
|
Final Working Capital
|
2.10(c)(i)
|
|
Financial Statements
|
5.5
|
|
Financing
|
4.1(i)
|
|
Indemnifiable Losses
|
9.4
|
|
Indemnified Party
|
9.7
|
|
Indemnifying Party
|
9.7
|
|
Latest Balance Sheet
|
5.5(a)
|
|
Letter of Transmittal
|
2.7(b)
|
|
License-In
|
5.11(a)
|
|
License-Out
|
5.11(a)
|
|
14
|
|
|
15
|
|
|
16
|
|
|
17
|
|
|
18
|
|
|
19
|
|
|
20
|
|
|
21
|
|
|
22
|
|
|
23
|
|
|
24
|
|
|
25
|
|
|
26
|
|
|
27
|
|
|
28
|
|
|
29
|
|
|
30
|
|
|
31
|
|
|
32
|
|
|
33
|
|
|
34
|
|
|
35
|
|
|
36
|
|
|
37
|
|
|
38
|
|
|
39
|
|
|
40
|
|
|
41
|
|
|
42
|
|
|
43
|
|
|
44
|
|
|
45
|
|
|
46
|
|
|
47
|
|
|
48
|
|
|
49
|
|
|
50
|
|
|
51
|
|
|
52
|
|
|
53
|
|
|
54
|
|
|
55
|
|
|
56
|
|
|
57
|
|
|
58
|
|
|
59
|
|
|
60
|
|
|
61
|
|
|
62
|
|
|
63
|
|
|
64
|
|
|
65
|
|
|
66
|
|
|
67
|
|
|
68
|
|
|
69
|
|
|
70
|
|
|
71
|
|
|
72
|
|
|
73
|
|
|
74
|
|
|
75
|
|
|
76
|
|
|
77
|
|
|
78
|
|
|
79
|
|
|
80
|
|
|
81
|
|
|
82
|
|
|
83
|
|
|
84
|
|
|
85
|
|
|
86
|
|
|
87
|
|
|
88
|
|
•
|
Annual base salary of $400,000.00 (which is $16,666.67 per pay period).
|
•
|
Participation in the Prestige Brands Inc. Bonus Plan for the fiscal year ending March 31, 2017. Your target eligibility is $200,000. The actual bonus may be higher, lower or non-existent dependent on the financial performance of the Company and your individual performance. For Fiscal Year 2017, your Bonus will be prorated based on length of service in the year and you must be employed on the date of payment to be eligible.
|
•
|
Participation in the Long Term Incentive Plan (LTIP) with an initial target opportunity equal to $400,000. The structure of the long-term incentive will be generally consistent with that of other senior executives at Prestige. Your first award of long-term incentive will be made to you on the first day of your employment and be structured as follows:
|
§
|
2/3 Stock Options ($266,667) that vest in equal annual installments over 3 years. The options will have an exercise price equal to the stock price at the close on the date of grant and expire after 10 years if not exercised prior. The number of options will be determined based on the Black-Scholes formula.
|
§
|
1/3 Restricted Stock ($133,333) that cliff vests at the end of three years. The number of shares granted will be based on the closing price of the stock on the date of grant.
|
•
|
Medical Insurance (eligible immediately)
|
•
|
Dental Insurance (eligible 1
st
of month after Date of Hire (DOH))
|
•
|
Vision Insurance (eligible 1
st
of month after DOH)
|
•
|
Employee Life Insurance (eligible 1
st
of month after DOH) company paid
|
•
|
Long Term & Short Term Disability Insurance (eligible 1
st
of month after DOH)
|
•
|
Flexible Spending Account (eligible 1
st
of month after DOH)
|
•
|
401K Plan (Match of 65% up to 6% of salary subject to IRS cap and limits) (Eligible immediately)
|
•
|
4 weeks of vacation
|
1.)
|
Cause. “Cause” shall mean any of the following:
|
(a)
|
Personal dishonesty or willful misconduct, in each case in connection with your employment by the Company;
|
(b)
|
Breach of fiduciary duty or breach of the duty of loyalty to the Company which a majority of the Board determines in its sole and absolute good faith discretion materially adversely affects the Company or your ability to perform your duties under this Agreement;
|
(c)
|
Conviction for any felony (other than minor traffic offenses) or any crime involving moral turpitude;
|
(d)
|
Intentional breach of any provision of this Agreement or of any Company policy adopted by the Board which breach is not cured within 30 days after written notice from the Board;
|
(e)
|
Your willful continued failure to substantially perform your duties with the Company (other than any such failure resulting from incapacity due to Disability) if not cured within 30 days after a written demand for substantial performance is delivered to you by a majority of the Board that specifically identifies the manner in which such Board believes that you have not substantially performed your duties. For clarity, the failure of the Company to meet its business plans shall not be, in and of itself, grounds for a termination for Cause;
|
(a)
|
A material diminution in your title, reporting relationship, authority, duties or responsibilities; but excluding, for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by the Company promptly after receipt of notice thereof given by you to the CEO;
|
(b)
|
A material reduction by the Company in your Base Salary in effect on the Effective Date or as the same may be increased from time to time;
|
(c)
|
A material reduction by the Company in your annual target incentive bonus during the Term unless such reduction is a part of an across-the-board decrease in target incentive bonuses affecting all other Senior (C-level) Executives, in which case Good Reason shall exist only if the your decrease is larger than that of other C-level executives;
|
|
|
(d)
|
The Company’s requiring you, without your consent, to be based at any office or location more than fifty (50) miles from the company’s current headquarters in Tarrytown, New York; or
|
|
|
(e)
|
The material breach by the company of any provision of this Agreement.
|
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:
|
February 2, 2017
|
/s/ Ronald M. Lombardi
|
|
|
|
Ronald M. Lombardi
|
|
|
|
Chief Executive Officer
|
|
|
|
(Principal 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:
|
February 2, 2017
|
/s/ Christine Sacco
|
|
|
|
Christine Sacco
|
|
|
|
Chief Financial Officer
|
|
|
|
(Principal Financial Officer)
|
|
/s/ Ronald M. Lombardi
|
Name: Ronald M. Lombardi
|
Title: Chief Executive Officer
|
(Principal Executive Officer)
|
Date: February 2, 2017
|
|
|
|
|
|
|
/s/ Christine Sacco
|
|
Name: Christine Sacco
|
|
Title: Chief Financial Officer
|
|
(Principal Financial Officer)
|
|
Date: February 2, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|