☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ______ TO ______ |
Delaware | 20-1297589 | |||||||
(State or Other Jurisdiction of
Incorporation or Organization) |
(I.R.S. Employer Identification No.) |
(Registrant's Telephone Number, Including Area Code) | ||
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common stock, par value $0.01 per share | PBH | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||||||||
Emerging growth company | ☐ |
Page | ||||||||
Part I | ||||||||
Item 1. | Business | |||||||
Item 1A. | Risk Factors | |||||||
Item 1B. | Unresolved Staff Comments | |||||||
Item 2. | Properties | |||||||
Item 3. | Legal Proceedings | |||||||
Item 4. | Mine Safety Disclosures | |||||||
Part II | ||||||||
Item 5. | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | |||||||
Item 6. | Selected Financial Data | |||||||
Item 7. | Management's Discussion and Analysis of Financial Condition and Results of Operations | |||||||
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk | |||||||
Item 8. | Financial Statements and Supplementary Data | |||||||
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | |||||||
Item 9A. | Controls and Procedures | |||||||
Item 9B. | Other Information | |||||||
Part III | ||||||||
Item 10. | Directors, Executive Officers and Corporate Governance | |||||||
Item 11. | Executive Compensation | |||||||
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | |||||||
Item 13. | Certain Relationships and Related Transactions, and Director Independence | |||||||
Item 14. | Principal Accounting Fees and Services | |||||||
Part IV | ||||||||
Item 15. | Exhibits, Financial Statement Schedules | |||||||
Item 16. | Form 10-K Summary | |||||||
TRADEMARKS AND TRADENAMES | ||||||||
Trademarks and tradenames used in this Annual Report on Form 10-K are the property of Prestige Consumer Healthcare Inc. or its subsidiaries, as the case may be. We have italicized our trademarks or tradenames when they appear in this Annual Report on Form 10-K. |
March 31, | |||||||||||||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||
Segment: | |||||||||||||||||||||||||||||||||||
North American OTC Healthcare | 89.2 | % | 88.4 | % | 83.5 | % | |||||||||||||||||||||||||||||
International OTC Healthcare | 10.8 | 9.6 | 8.8 | ||||||||||||||||||||||||||||||||
Household Cleaning | — | 2.0 | 7.7 | ||||||||||||||||||||||||||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % |
Major Brands | Product Group |
Market
Position (1)
|
Market Segment (2)
|
Brand Information | ||||||||||||||||||||||||||||||||||||||||
North American OTC Healthcare: (3)
|
||||||||||||||||||||||||||||||||||||||||||||
BC®/Goody's | Analgesics | #1 | Analgesic Powders | Developed over 80 years ago, BC and Goody’s provide fast pain relief at the speed of powder | ||||||||||||||||||||||||||||||||||||||||
Boudreaux's Butt Paste | Dermatologicals | #4 | Baby Ointments | Products include various diaper rash ointments produced without unwanted ingredients | ||||||||||||||||||||||||||||||||||||||||
Chloraseptic | Cough & Cold | #1 | Sore Throat Liquids/Lozenges | Products include sprays and lozenges to relieve sore throats and mouth pain | ||||||||||||||||||||||||||||||||||||||||
Clear Eyes | Eye & Ear Care | #1 | Eye Allergy/Redness Relief | Effective eye care that helps eliminate redness and provides soothing comfort | ||||||||||||||||||||||||||||||||||||||||
Compound W | Dermatologicals | #1 | Wart Removal | Wart removal products that were introduced more than 50 years ago | ||||||||||||||||||||||||||||||||||||||||
Debrox | Eye & Ear Care | #1 | Ear Wax Removal | Provides a safe, gentle method of removing earwax buildup at home | ||||||||||||||||||||||||||||||||||||||||
DenTek | Oral Care | #3 | PEG Oral Care | Products include floss picks, interdental brushes, dental guards, dental repair and wax, floss threaders, dental picks and tongue cleaners | ||||||||||||||||||||||||||||||||||||||||
Dramamine | Gastrointestinal | #1 | Motion Sickness Relief | Includes non-drowsy formula, Dramamine-N for nausea, a kids' formula and original formula | ||||||||||||||||||||||||||||||||||||||||
Fleet | Gastrointestinal | #1 | Adult Enemas/Suppositories | First sold in 1869, products include enemas and suppositories | ||||||||||||||||||||||||||||||||||||||||
Gaviscon | Gastrointestinal | #1 | Upset Stomach Remedies | Creates a foam barrier to keep stomach acid from backing up into the esophagus | ||||||||||||||||||||||||||||||||||||||||
Luden's | Cough & Cold | #3 | Cough Drops | Brand is over 130 years old and includes a variety of flavors | ||||||||||||||||||||||||||||||||||||||||
Monistat | Women's Health | #1 | Vaginal Anti-Fungal | Provides fast treatment for yeast infections and is available in several different doses | ||||||||||||||||||||||||||||||||||||||||
Nix | Dermatologicals | #1 | Lice/Parasite Treatments | Safe for use on children as young as 2 years old | ||||||||||||||||||||||||||||||||||||||||
Summer's Eve | Women's Health | #1 | Feminine Hygiene | Offers a variety of feminine hygiene products including washes, cloths, sprays and powders | ||||||||||||||||||||||||||||||||||||||||
International OTC Healthcare:
|
||||||||||||||||||||||||||||||||||||||||||||
Fess | Cough & Cold | #1 | Nasal Saline Sprays and Washes | Helps relieve nasal and sinus congestion due to allergy, hay fever, colds and flu | ||||||||||||||||||||||||||||||||||||||||
Hydralyte | Gastrointestinal | #1 | Oral Rehydration | Relieves symptoms of dehydration and helps replace water and electrolytes lost due to vomiting, diarrhea, heavy sweating, vigorous exercise and occasional hangovers |
Percentage of Gross Sales(1)
|
|||||||||||||||||||||||||||||
Channel of Distribution | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||
Mass | 36.5 | 37.4 | 37.2 | ||||||||||||||||||||||||||
Drug | 25.6 | 26.4 | 24.6 | ||||||||||||||||||||||||||
Food | 15.4 | 15.5 | 15.8 | ||||||||||||||||||||||||||
Dollar | 6.6 | 6.8 | 9.0 | ||||||||||||||||||||||||||
Convenience | 3.9 | 4.0 | 3.2 | ||||||||||||||||||||||||||
Club | 1.4 | 1.6 | 1.6 | ||||||||||||||||||||||||||
Other (2)
|
10.6 | 8.3 | 8.6 |
Period | Total Number of Shares Purchased (a) | 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 | ||||||||||||||||||||||
January 1 to January 31, 2020 | — | $ | — | — | $ | — | ||||||||||||||||||||
February 1 to February 29, 2020 | — | $ | — | — | $ | — | ||||||||||||||||||||
March 1 to March 31, 2020 | 194,357 | $ | 34.71 | 194,357 | $ | 18,254,678 | ||||||||||||||||||||
Total | 194,357 | 194,357 |
March 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company/Market/Peer Group | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prestige Consumer Healthcare Inc. | $ | 100.00 | $ | 124.48 | $ | 129.54 | $ | 78.62 | $ | 69.74 | $ | 85.52 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Russell 2000 Index | 100.00 | 90.24 | 113.90 | 127.33 | 129.94 | 98.77 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
S&P MidCap 400 Index | 100.00 | 96.40 | 116.57 | 129.36 | 132.72 | 102.84 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Peer Group Index | 100.00 | 87.35 | 91.43 | 87.92 | 90.87 | 76.58 |
(In thousands, except per share data) | Year Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||
Income Statement Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 963,010 | $ | 975,777 | $ | 1,041,179 | $ | 882,060 | $ | 806,247 | |||||||||||||||||||||||||||||||||||||||||||
Cost of Sales | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales excluding depreciation | 406,554 | 415,469 | 459,676 | 381,333 | 339,036 | ||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales depreciation | 4,233 | 4,732 | 4,998 | 441 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales (1)
|
410,787 | 420,201 | 464,674 | 381,774 | 339,036 | ||||||||||||||||||||||||||||||||||||||||||||||||
Gross profit | 552,223 | 555,576 | 576,505 | 500,286 | 467,211 | ||||||||||||||||||||||||||||||||||||||||||||||||
Advertising and promotion (2)
|
147,194 | 143,090 | 147,286 | 128,359 | 110,802 | ||||||||||||||||||||||||||||||||||||||||||||||||
General and administrative (3)
|
89,112 | 89,759 | 85,393 | 89,113 | 72,386 | ||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 24,762 | 27,047 | 28,428 | 25,351 | 23,676 | ||||||||||||||||||||||||||||||||||||||||||||||||
(Gain) loss on divestitures | — | (1,284) | — | 51,820 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and tradename impairment | — | 229,461 | 99,924 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net (4)
|
96,224 | 105,082 | 105,879 | 93,343 | 85,160 | ||||||||||||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | 2,155 | — | 2,901 | 1,420 | 17,970 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other expense (income), net (5)
|
1,625 | 476 | (392) | 30 | 32 | ||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 191,151 | (38,055) | 107,086 | 110,850 | 157,185 | ||||||||||||||||||||||||||||||||||||||||||||||||
Provision (benefit) for income taxes | 48,870 | (2,255) | (232,484) | 41,455 | 57,278 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 142,281 | $ | (35,800) | $ | 339,570 | $ | 69,395 | $ | 99,907 | |||||||||||||||||||||||||||||||||||||||||||
Earnings (Loss) Per Share: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 2.81 | $ | (0.69) | $ | 6.40 | $ | 1.31 | $ | 1.89 | |||||||||||||||||||||||||||||||||||||||||||
Diluted | $ | 2.78 | $ | (0.69) | $ | 6.34 | $ | 1.30 | $ | 1.88 | |||||||||||||||||||||||||||||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | 50,723 | 52,068 | 53,099 | 52,976 | 52,754 | ||||||||||||||||||||||||||||||||||||||||||||||||
Diluted | 51,140 | 52,068 | 53,526 | 53,362 | 53,143 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income | (18,414) | (6,432) | 7,037 | (2,827) | (113) | ||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | $ | 123,867 | $ | (42,232) | $ | 346,607 | $ | 66,568 | $ | 99,794 |
Year Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Financial Data | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||
Capital expenditures | $ | 14,560 | $ | 10,480 | $ | 12,532 | $ | 2,977 | $ | 3,568 | |||||||||||||||||||||||||||||||||||||||||||
Cash provided by (used in): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating activities | 217,124 | 189,284 | 210,110 | 148,672 | 176,310 | ||||||||||||||||||||||||||||||||||||||||||||||||
Investing activities | (16,570) | 55,432 | (11,562) | (694,595) | (222,971) | ||||||||||||||||||||||||||||||||||||||||||||||||
Financing activities | (131,431) | (249,328) | (208,955) | 560,957 | 52,076 | ||||||||||||||||||||||||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Data | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 94,760 | $ | 27,530 | $ | 32,548 | $ | 41,855 | $ | 27,230 | |||||||||||||||||||||||||||||||||||||||||||
Total assets | 3,513,905 | 3,441,036 | 3,760,612 | 3,911,348 | 2,948,791 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total long-term debt, including current maturities | 1,745,000 | 1,813,000 | 2,013,000 | 2,222,000 | 1,652,500 | ||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ equity | 1,170,971 | 1,095,831 | 1,178,610 | 822,549 | 744,336 |
March 31, 2020 | |||||||||||||||||||||||||||||||||||
(In thousands) |
North American OTC
Healthcare |
International OTC
Healthcare |
Consolidated | ||||||||||||||||||||||||||||||||
Goodwill | $ | 546,643 | $ | 28,536 | $ | 575,179 | |||||||||||||||||||||||||||||
Intangible assets | |||||||||||||||||||||||||||||||||||
Indefinite-lived | 2,195,617 | 69,714 | 2,265,331 | ||||||||||||||||||||||||||||||||
Finite-lived | 209,604 | 4,456 | 214,060 | ||||||||||||||||||||||||||||||||
Intangible assets, net | 2,405,221 | 74,170 | 2,479,391 | ||||||||||||||||||||||||||||||||
Total | $ | 2,951,864 | $ | 102,706 | $ | 3,054,570 | |||||||||||||||||||||||||||||
March 31, 2019 | |||||||||||||||||||||||||||||||||||
(In thousands) |
North American OTC
Healthcare |
International OTC
Healthcare |
Consolidated | ||||||||||||||||||||||||||||||||
Goodwill | $ | 547,393 | $ | 31,190 | $ | 578,583 | |||||||||||||||||||||||||||||
Intangible assets | |||||||||||||||||||||||||||||||||||
Indefinite-lived | 2,195,617 | 77,574 | 2,273,191 | ||||||||||||||||||||||||||||||||
Finite-lived | 228,743 | 5,276 | 234,019 | ||||||||||||||||||||||||||||||||
Intangible assets, net | 2,424,360 | 82,850 | 2,507,210 | ||||||||||||||||||||||||||||||||
Total | $ | 2,971,753 | $ | 114,040 | $ | 3,085,793 | |||||||||||||||||||||||||||||
Increase (Decrease) | |||||||||||||||||||||||
(In thousands) | 2020 | % | 2019 | % | Amount | % | |||||||||||||||||
North American OTC Healthcare | |||||||||||||||||||||||
Analgesics | $ | 113,130 | 11.7 | $ | 113,563 | 11.6 | $ | (433) | (0.4) | ||||||||||||||
Cough & Cold | 87,601 | 9.1 | 83,168 | 8.5 | 4,433 | 5.3 | |||||||||||||||||
Women's Health | 239,330 | 24.9 | 244,927 | 25.1 | (5,597) | (2.3) | |||||||||||||||||
Gastrointestinal | 130,088 | 13.5 | 125,416 | 12.9 | 4,672 | 3.7 | |||||||||||||||||
Eye & Ear Care | 100,245 | 10.4 | 101,128 | 10.4 | (883) | (0.9) | |||||||||||||||||
Dermatologicals | 100,591 | 10.4 | 95,801 | 9.8 | 4,790 | 5.0 | |||||||||||||||||
Oral Care | 83,323 | 8.7 | 92,964 | 9.5 | (9,641) | (10.4) | |||||||||||||||||
Other OTC | 5,060 | 0.5 | 5,479 | 0.6 | (419) | (7.6) | |||||||||||||||||
Total North American OTC Healthcare | 859,368 | 89.2 | 862,446 | 88.4 | (3,078) | (0.4) | |||||||||||||||||
International OTC Healthcare | |||||||||||||||||||||||
Analgesics | 877 | 0.1 | 615 | 0.1 | 262 | 42.6 | |||||||||||||||||
Cough & Cold | 23,505 | 2.4 | 19,955 | 2.0 | 3,550 | 17.8 | |||||||||||||||||
Women's Health | 12,221 | 1.3 | 13,552 | 1.4 | (1,331) | (9.8) | |||||||||||||||||
Gastrointestinal | 42,820 | 4.5 | 35,046 | 3.6 | 7,774 | 22.2 | |||||||||||||||||
Eye & Ear Care | 11,911 | 1.2 | 11,709 | 1.2 | 202 | 1.7 | |||||||||||||||||
Dermatologicals | 2,421 | 0.3 | 2,171 | 0.2 | 250 | 11.5 | |||||||||||||||||
Oral Care | 9,882 | 1.0 | 10,468 | 1.1 | (586) | (5.6) | |||||||||||||||||
Other OTC | 5 | — | 4 | — | 1 | 25.0 | |||||||||||||||||
Total International OTC Healthcare | 103,642 | 10.8 | 93,520 | 9.6 | 10,122 | 10.8 | |||||||||||||||||
Total OTC Healthcare | 963,010 | 100.0 | 955,966 | 98.0 | 7,044 | 0.7 | |||||||||||||||||
Household Cleaning | — | — | 19,811 | 2.0 | (19,811) | (100.0) | |||||||||||||||||
Total Consolidated | $ | 963,010 | 100.0 | $ | 975,777 | 100.0 | $ | (12,767) | (1.3) |
(In thousands) | Increase (Decrease) | ||||||||||||||||||||||
Gross Profit | 2020 | % | 2019 | % | Amount | % | |||||||||||||||||
North American OTC Healthcare | $ | 487,235 | 56.7 | $ | 497,913 | 57.7 | $ | (10,678) | (2.1) | ||||||||||||||
International OTC Healthcare | 64,988 | 62.7 | 54,440 | 58.2 | 10,548 | 19.4 | |||||||||||||||||
Household Cleaning | — | — | 3,223 | 16.3 | (3,223) | (100.0) | |||||||||||||||||
$ | 552,223 | 57.3 | $ | 555,576 | 56.9 | $ | (3,353) | (0.6) |
(In thousands) | Increase (Decrease) | ||||||||||||||||||||||
Contribution Margin | 2020 | % | 2019 | % | Amount | % | |||||||||||||||||
North American OTC Healthcare | $ | 359,263 | 41.8 | $ | 371,539 | 43.1 | $ | (12,276) | (3.3) | ||||||||||||||
International OTC Healthcare | 45,766 | 44.2 | 38,154 | 40.8 | 7,612 | 20.0 | |||||||||||||||||
Household Cleaning | — | — | 2,793 | 14.1 | (2,793) | (100.0) | |||||||||||||||||
$ | 405,029 | 42.1 | $ | 412,486 | 42.3 | $ | (7,457) | (1.8) |
Year Ended March 31, | $ Change | ||||||||||||||||||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2018 | 2020 vs. 2019 | 2019 vs. 2018 | ||||||||||||||||||||||||||||||||||||
Net cash provided by (used in): | |||||||||||||||||||||||||||||||||||||||||
Operating activities | $ | 217,124 | $ | 189,284 | $ | 210,110 | $ | 27,840 | $ | (20,826) | |||||||||||||||||||||||||||||||
Investing activities | (16,570) | 55,432 | (11,562) | (72,002) | 66,994 | ||||||||||||||||||||||||||||||||||||
Financing activities | (131,431) | (249,328) | (208,955) | 117,897 | (40,373) | ||||||||||||||||||||||||||||||||||||
Effects of exchange rate changes on cash and cash equivalents | (1,893) | (406) | 1,100 | (1,487) | (1,506) | ||||||||||||||||||||||||||||||||||||
Net change in cash and cash equivalents | $ | 67,230 | $ | (5,018) | $ | (9,307) | $ | 72,248 | $ | 4,289 |
Payments Due by Period | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | Less than | 1 to 3 | 4 to 5 | After 5 | |||||||||||||||||||||||||||||||||||||||||||||||||
Contractual Obligations | Total | 1 Year | Years | Years | Years | ||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | $ | 1,745.0 | $ | — | $ | — | $ | 1,345.0 | $ | 400.0 | |||||||||||||||||||||||||||||||||||||||||||
Interest on long-term debt(1)
|
483.8 | 87.7 | 183.8 | 120.2 | 92.1 | ||||||||||||||||||||||||||||||||||||||||||||||||
Purchase obligations: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory costs(2)
|
169.9 | 142.9 | 16.0 | 4.8 | 6.2 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other costs(3)
|
28.4 | 27.8 | 0.4 | 0.2 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Operating leases(4)
|
30.5 | 5.6 | 10.8 | 9.5 | 4.6 | ||||||||||||||||||||||||||||||||||||||||||||||||
Finance leases | 5.8 | 1.2 | 2.5 | 2.1 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Total contractual cash obligations(5)
|
$ | 2,463.4 | $ | 265.2 | $ | 213.5 | $ | 1,481.8 | $ | 502.9 |
Report of Independent Registered Public Accounting Firm,
PricewaterhouseCoopers LLP |
|||||
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) for each of the three years in the period ended March 31, 2020 | |||||
Consolidated Balance Sheets at March 31, 2020 and 2019 | |||||
Consolidated Statements of Changes in Stockholders’ Equity for each of the three years in the period ended March 31, 2020 | |||||
Consolidated Statements of Cash Flows for each of the three years in the period ended March 31, 2020 | |||||
Notes to Consolidated Financial Statements | |||||
Schedule II—Valuation and Qualifying Accounts for the years ended March 31, 2020, 2019 and 2018 |
Year Ended March 31, | |||||||||||||||||||||||||||||
(In thousands, except per share data) | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
Net sales | $ | 962,936 | $ | 975,692 | $ | 1,040,792 | |||||||||||||||||||||||
Other revenues | 74 | 85 | 387 | ||||||||||||||||||||||||||
Total revenues | 963,010 | 975,777 | 1,041,179 | ||||||||||||||||||||||||||
Cost of Sales | |||||||||||||||||||||||||||||
Cost of sales excluding depreciation | 406,554 | 415,469 | 459,676 | ||||||||||||||||||||||||||
Cost of sales depreciation | 4,233 | 4,732 | 4,998 | ||||||||||||||||||||||||||
Cost of sales | 410,787 | 420,201 | 464,674 | ||||||||||||||||||||||||||
Gross profit | 552,223 | 555,576 | 576,505 | ||||||||||||||||||||||||||
Operating Expenses | |||||||||||||||||||||||||||||
Advertising and promotion | 147,194 | 143,090 | 147,286 | ||||||||||||||||||||||||||
General and administrative | 89,112 | 89,759 | 85,393 | ||||||||||||||||||||||||||
Depreciation and amortization | 24,762 | 27,047 | 28,428 | ||||||||||||||||||||||||||
Gain on divestiture | — | (1,284) | — | ||||||||||||||||||||||||||
Goodwill and tradename impairment | — | 229,461 | 99,924 | ||||||||||||||||||||||||||
Total operating expenses | 261,068 | 488,073 | 361,031 | ||||||||||||||||||||||||||
Operating income | 291,155 | 67,503 | 215,474 | ||||||||||||||||||||||||||
Other (income) expense | |||||||||||||||||||||||||||||
Interest income | (342) | (217) | (388) | ||||||||||||||||||||||||||
Interest expense | 96,566 | 105,299 | 106,267 | ||||||||||||||||||||||||||
Loss on extinguishment of debt | 2,155 | — | 2,901 | ||||||||||||||||||||||||||
Other expense (income), net | 1,625 | 476 | (392) | ||||||||||||||||||||||||||
Total other expense | 100,004 | 105,558 | 108,388 | ||||||||||||||||||||||||||
Income (loss) before income taxes | 191,151 | (38,055) | 107,086 | ||||||||||||||||||||||||||
Provision (benefit) for income taxes | 48,870 | (2,255) | (232,484) | ||||||||||||||||||||||||||
Net income (loss) | $ | 142,281 | $ | (35,800) | $ | 339,570 | |||||||||||||||||||||||
Earnings (loss) per share: | |||||||||||||||||||||||||||||
Basic | $ | 2.81 | $ | (0.69) | $ | 6.40 | |||||||||||||||||||||||
Diluted | $ | 2.78 | $ | (0.69) | $ | 6.34 | |||||||||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||||||||
Basic | 50,723 | 52,068 | 53,099 | ||||||||||||||||||||||||||
Diluted | 51,140 | 52,068 | 53,526 | ||||||||||||||||||||||||||
Comprehensive income (loss), net of tax: | |||||||||||||||||||||||||||||
Currency translation adjustments | (12,363) | (6,480) | 5,702 | ||||||||||||||||||||||||||
Unrealized loss on interest rate swaps | (4,864) | — | — | ||||||||||||||||||||||||||
Unrecognized net (loss) gain on pension plans | (1,187) | 48 | 1,335 | ||||||||||||||||||||||||||
Total other comprehensive (loss) income | (18,414) | (6,432) | 7,037 | ||||||||||||||||||||||||||
Comprehensive income (loss) | $ | 123,867 | $ | (42,232) | $ | 346,607 |
(In thousands) | March 31, | ||||||||||||||||
Assets | 2020 | 2019 | |||||||||||||||
Current assets | |||||||||||||||||
Cash and cash equivalents | $ | 94,760 | $ | 27,530 | |||||||||||||
Accounts receivable, net of allowance of $20,194 and $12,965, respectively | 150,517 | 148,787 | |||||||||||||||
Inventories | 116,026 | 119,880 | |||||||||||||||
Prepaid expenses and other current assets | 4,351 | 4,741 | |||||||||||||||
Total current assets | 365,654 | 300,938 | |||||||||||||||
Property, plant and equipment, net | 55,988 | 51,176 | |||||||||||||||
Operating lease right-of-use assets | 28,888 | — | |||||||||||||||
Finance lease right-of-use assets | 5,842 | — | |||||||||||||||
Goodwill | 575,179 | 578,583 | |||||||||||||||
Intangible assets, net | 2,479,391 | 2,507,210 | |||||||||||||||
Other long-term assets | 2,963 | 3,129 | |||||||||||||||
Total Assets | $ | 3,513,905 | $ | 3,441,036 | |||||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||
Current liabilities | |||||||||||||||||
Accounts payable | $ | 62,375 | $ | 56,560 | |||||||||||||
Accrued interest payable | 9,911 | 9,756 | |||||||||||||||
Operating lease liabilities, current portion | 5,612 | — | |||||||||||||||
Finance lease liabilities, current portion | 1,220 | — | |||||||||||||||
Other accrued liabilities | 70,763 | 60,663 | |||||||||||||||
Total current liabilities | 149,881 | 126,979 | |||||||||||||||
Long-term debt, net | 1,730,300 | 1,798,598 | |||||||||||||||
Deferred income tax liabilities | 407,812 | 399,575 | |||||||||||||||
Long-term operating lease liabilities, net of current portion | 24,877 | — | |||||||||||||||
Long-term finance lease liabilities, net of current portion | 4,626 | — | |||||||||||||||
Other long-term liabilities | 25,438 | 20,053 | |||||||||||||||
Total Liabilities | 2,342,934 | 2,345,205 | |||||||||||||||
Commitments and Contingencies – Note 18 | |||||||||||||||||
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 – 53,805 shares at March 31, 2020 and 53,670 shares at March 31, 2019 | 538 | 536 | |||||||||||||||
Additional paid-in capital | 488,116 | 479,150 | |||||||||||||||
Treasury stock, at cost – 3,719 shares at March 31, 2020 and 1,871 shares at March 31, 2019 | (117,623) | (59,928) | |||||||||||||||
Accumulated other comprehensive loss, net of tax | (44,161) | (25,747) | |||||||||||||||
Retained earnings | 844,101 | 701,820 | |||||||||||||||
Total Stockholders’ Equity | 1,170,971 | 1,095,831 | |||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 3,513,905 | $ | 3,441,036 |
Common Stock | Additional Paid-in Capital | Treasury Stock |
Accumulated
Other Comprehensive (Loss) Income |
Retained
Earnings |
Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Shares |
Par
Value |
Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at March 31, 2017 | 53,287 | $ | 533 | $ | 458,255 | 332 | $ | (6,594) | $ | (26,352) | $ | 396,707 | $ | 822,549 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 8,909 | — | — | — | — | 8,909 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 56 | — | 1,620 | — | — | — | — | 1,620 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of shares related to restricted stock | 53 | 1 | (1) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury share repurchases | — | — | — | 21 | (1,075) | — | — | (1,075) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | 339,570 | 339,570 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | 7,037 | — | 7,037 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at March 31, 2018 | 53,396 | $ | 534 | $ | 468,783 | 353 | $ | (7,669) | $ | (19,315) | $ | 736,277 | $ | 1,178,610 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Adoption of new accounting pronouncement | — | — | — | — | — | — | 1,343 | 1,343 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 7,438 | — | — | — | — | 7,438 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 98 | — | 2,931 | — | — | — | — | 2,931 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of shares related to restricted stock | 176 | 2 | (2) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury share repurchases | — | — | — | 1,518 | (52,259) | — | — | (52,259) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (35,800) | (35,800) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (6,432) | — | (6,432) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at March 31, 2019 | 53,670 | $ | 536 | $ | 479,150 | 1,871 | $ | (59,928) | $ | (25,747) | $ | 701,820 | $ | 1,095,831 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 7,644 | — | — | — | — | 7,644 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 48 | 1 | 1,323 | — | — | — | — | 1,324 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of shares related to restricted stock | 87 | 1 | (1) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury share repurchases | — | — | — | 1,848 | (57,695) | — | — | (57,695) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | 142,281 | 142,281 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (18,414) | — | (18,414) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at March 31, 2020 | 53,805 | $ | 538 | $ | 488,116 | 3,719 | $ | (117,623) | $ | (44,161) | $ | 844,101 | $ | 1,170,971 |
Year Ended March 31, | |||||||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||
Operating Activities | |||||||||||||||||||||||||||||
Net income (loss) | 142,281 | $ | (35,800) | $ | 339,570 | ||||||||||||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||||||||||||||||
Depreciation and amortization | 28,995 | 31,779 | 33,426 | ||||||||||||||||||||||||||
Gain on divestitures | — | (1,284) | — | ||||||||||||||||||||||||||
Loss on sale or disposal of property and equipment | 713 | 216 | 1,568 | ||||||||||||||||||||||||||
Deferred income taxes | 13,852 | (40,554) | (269,086) | ||||||||||||||||||||||||||
Amortization of debt origination costs | 3,812 | 5,923 | 6,742 | ||||||||||||||||||||||||||
Stock-based compensation costs | 7,644 | 7,438 | 8,909 | ||||||||||||||||||||||||||
Loss on extinguishment of debt | 2,155 | — | 2,901 | ||||||||||||||||||||||||||
Non-cash operating lease cost | 8,786 | — | — | ||||||||||||||||||||||||||
Interest expense relating to ROU assets | 84 | — | — | ||||||||||||||||||||||||||
Impairment loss | — | 229,461 | 99,924 | ||||||||||||||||||||||||||
Lease termination costs | — | — | 214 | ||||||||||||||||||||||||||
Other non-cash items | — | 421 | 1,704 | ||||||||||||||||||||||||||
Changes in operating assets and liabilities, net of effects from acquisitions and divestitures: | |||||||||||||||||||||||||||||
Accounts receivable | (2,849) | (2,980) | (5,043) | ||||||||||||||||||||||||||
Inventories | 2,930 | (10,535) | (2,482) | ||||||||||||||||||||||||||
Prepaid expenses and other assets | 687 | 6,887 | 33,721 | ||||||||||||||||||||||||||
Accounts payable | 6,210 | (3,993) | (10,028) | ||||||||||||||||||||||||||
Accrued liabilities | 12,096 | 3,734 | (31,495) | ||||||||||||||||||||||||||
Operating lease liabilities | (8,824) | — | — | ||||||||||||||||||||||||||
Other | (1,448) | (1,429) | (435) | ||||||||||||||||||||||||||
Net cash provided by operating activities | 217,124 | 189,284 | 210,110 | ||||||||||||||||||||||||||
Investing Activities | |||||||||||||||||||||||||||||
Purchases of property, plant and equipment | (14,560) | (10,480) | (12,532) | ||||||||||||||||||||||||||
Proceeds from divestitures | — | 65,912 | — | ||||||||||||||||||||||||||
Escrow receipt | 750 | — | 970 | ||||||||||||||||||||||||||
Acquisition of tradename | (2,760) | — | — | ||||||||||||||||||||||||||
Net cash (used in) provided by investing activities | (16,570) | 55,432 | (11,562) | ||||||||||||||||||||||||||
Financing Activities | |||||||||||||||||||||||||||||
Proceeds from issuance of 2016 Senior Notes | — | — | 250,000 | ||||||||||||||||||||||||||
Proceeds from issuance of 2019 Senior Notes | 400,000 | — | — | ||||||||||||||||||||||||||
Repayment of 2013 Senior Notes | (400,000) | — | — | ||||||||||||||||||||||||||
Term Loan repayments | (48,000) | (200,000) | (444,000) | ||||||||||||||||||||||||||
Borrowings under revolving credit agreement | 100,000 | 45,000 | 30,000 | ||||||||||||||||||||||||||
Repayments under revolving credit agreement | (120,000) | (45,000) | (45,000) | ||||||||||||||||||||||||||
Payments of debt origination costs | (6,584) | — | (500) | ||||||||||||||||||||||||||
Payments of finance leases | (476) | — | — | ||||||||||||||||||||||||||
Proceeds from exercise of stock options | 1,324 | 2,931 | 1,620 | ||||||||||||||||||||||||||
Fair value of shares surrendered as payment of tax withholding | (974) | (2,281) | (1,075) | ||||||||||||||||||||||||||
Repurchase of common stock | (56,721) | (49,978) | — | ||||||||||||||||||||||||||
Net cash used in financing activities | (131,431) | (249,328) | (208,955) | ||||||||||||||||||||||||||
Effects of exchange rate changes on cash and cash equivalents | (1,893) | (406) | 1,100 | ||||||||||||||||||||||||||
Increase (decrease) in cash and cash equivalents | 67,230 | (5,018) | (9,307) | ||||||||||||||||||||||||||
Cash and cash equivalents - beginning of year | 27,530 | 32,548 | 41,855 | ||||||||||||||||||||||||||
Cash and cash equivalents - end of year | $ | 94,760 | $ | 27,530 | $ | 32,548 | |||||||||||||||||||||||
Interest paid | $ | 92,166 | $ | 98,232 | $ | 98,572 | |||||||||||||||||||||||
Income taxes paid | $ | 30,602 | $ | 32,797 | $ | 24,440 |
Years | |||||
Building | 15 - 40 | ||||
Machinery | 3 - 15 | ||||
Computer equipment and software | 3 - 5 | ||||
Furniture and fixtures | 7 - 10 | ||||
Leasehold improvements | * |
Year Ended March 31, | |||||||||||||||||||||||||||||
(In thousands, except per share data) | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||
Numerator | |||||||||||||||||||||||||||||
Net income (loss) | $ | 142,281 | $ | (35,800) | $ | 339,570 | |||||||||||||||||||||||
Denominator | |||||||||||||||||||||||||||||
Denominator for basic earnings (loss) per share - weighted average shares outstanding | 50,723 | 52,068 | 53,099 | ||||||||||||||||||||||||||
Dilutive effect of unvested restricted stock units and options issued to employees and directors | 417 | — | 427 | ||||||||||||||||||||||||||
Denominator for diluted earnings (loss) per share | 51,140 | 52,068 | 53,526 | ||||||||||||||||||||||||||
Earnings (loss) per Common Share: | |||||||||||||||||||||||||||||
Basic net earnings (loss) per share | $ | 2.81 | $ | (0.69) | $ | 6.40 | |||||||||||||||||||||||
Diluted net earnings (loss) per share | $ | 2.78 | $ | (0.69) | $ | 6.34 | |||||||||||||||||||||||
(In thousands) | March 31, 2019 | New Lease Standard Adjustment | April 1, 2019 | ||||||||||||||
Assets: | |||||||||||||||||
Operating lease ROU assets | $ | — | $ | 17,435 | $ | 17,435 | |||||||||||
Liabilities: | |||||||||||||||||
Operating lease liabilities, current portion | $ | — | $ | (5,697) | $ | (5,697) | |||||||||||
Long-term operating lease liabilities, net of current portion | $ | — | $ | (13,296) | $ | (13,296) | |||||||||||
Other accrued liabilities (1)
|
$ | (60,663) | $ | 1,558 | $ | (59,105) |
(In thousands) | July 2, 2018 | ||||
Components of assets sold: | |||||
Inventory | $ | 6,644 | |||
Property, plant and equipment, net | 653 | ||||
Goodwill | 6,245 | ||||
Intangible assets, net | 49,315 | ||||
Assets sold | 62,857 | ||||
Total purchase price received | 65,912 | ||||
(3,055) | |||||
Costs to sell | 1,771 | ||||
Pre-tax gain on divestiture | $ | (1,284) |
March 31, | |||||||||||||||||
(In thousands) | 2020 | 2019 | |||||||||||||||
Components of Accounts Receivable | |||||||||||||||||
Trade accounts receivable | $ | 170,151 | $ | 161,047 | |||||||||||||
Other receivables | 560 | 705 | |||||||||||||||
170,711 | 161,752 | ||||||||||||||||
Less allowances for discounts, returns and uncollectible accounts | (20,194) | (12,965) | |||||||||||||||
Accounts receivable, net | $ | 150,517 | $ | 148,787 |
March 31, | |||||||||||||||||
(In thousands) | 2020 | 2019 | |||||||||||||||
Components of Inventories | |||||||||||||||||
Packaging and raw materials | $ | 9,803 | $ | 17,082 | |||||||||||||
Work in process | 355 | 161 | |||||||||||||||
Finished goods | 105,868 | 102,637 | |||||||||||||||
Inventories | $ | 116,026 | $ | 119,880 |
March 31, | |||||||||||||||||
(In thousands) | 2020 | 2019 | |||||||||||||||
Components of Property, Plant and Equipment | |||||||||||||||||
Land | $ | 550 | $ | 550 | |||||||||||||
Building | 16,508 | 13,960 | |||||||||||||||
Machinery | 42,299 | 38,761 | |||||||||||||||
Computer equipment | 22,396 | 20,716 | |||||||||||||||
Furniture and fixtures | 3,242 | 3,200 | |||||||||||||||
Leasehold improvements | 8,964 | 9,090 | |||||||||||||||
Construction in progress | 7,769 | 3,711 | |||||||||||||||
101,728 | 89,988 | ||||||||||||||||
Accumulated depreciation | (45,740) | (38,812) | |||||||||||||||
Property, plant and equipment, net | $ | 55,988 | $ | 51,176 |
(In thousands) | North American OTC Healthcare | International OTC Healthcare | Household Cleaning | Consolidated | |||||||||||||||||||
Balance – March 31, 2018 | |||||||||||||||||||||||
Goodwill | $ | 711,104 | $ | 32,919 | $ | 71,405 | $ | 815,428 | |||||||||||||||
Accumulated impairment losses | (130,170) | — | (65,160) | (195,330) | |||||||||||||||||||
Balance - March 31, 2018 | 580,934 | 32,919 | 6,245 | 620,098 | |||||||||||||||||||
2019 Reductions: | |||||||||||||||||||||||
Goodwill (a)
|
— | — | (71,405) | (71,405) | |||||||||||||||||||
Accumulated impairment loss (a)
|
— | — | 65,160 | 65,160 | |||||||||||||||||||
Effects of foreign currency exchange rates | — | (1,729) | — | (1,729) | |||||||||||||||||||
Impairment loss | (33,541) | — | — | (33,541) | |||||||||||||||||||
Balance – March 31, 2019 | |||||||||||||||||||||||
Goodwill | 711,104 | 31,190 | — | 742,294 | |||||||||||||||||||
Accumulated impairment losses | (163,711) | — | — | — | — | — | (163,711) | ||||||||||||||||
Balance - March 31, 2019 | $ | 547,393 | $ | 31,190 | $ | — | $ | 578,583 | |||||||||||||||
2020 Reductions: | — | — | — | ||||||||||||||||||||
Goodwill (b)
|
(750) | — | — | (750) | |||||||||||||||||||
Effects of foreign currency exchange rates | — | (2,654) | — | (2,654) | |||||||||||||||||||
Balance – March 31, 2020 | |||||||||||||||||||||||
Goodwill | 710,354 | 28,536 | — | 738,890 | |||||||||||||||||||
Accumulated impairment losses | (163,711) | — | — | (163,711) | |||||||||||||||||||
Balance - March 31, 2020 | $ | 546,643 | $ | 28,536 | $ | — | $ | 575,179 |
Year Ended March 31, 2020 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) |
Indefinite-
Lived Tradenames |
Finite-Lived
Tradenames and Customer Relationships |
Totals | ||||||||||||||||||||||||||||||||||||||
Gross Carrying Amounts | |||||||||||||||||||||||||||||||||||||||||
Balance – March 31, 2019 | $ | 2,273,191 | $ | 390,283 | $ | 2,663,474 | |||||||||||||||||||||||||||||||||||
Additions (a)
|
2,760 | — | 2,760 | ||||||||||||||||||||||||||||||||||||||
Effects of foreign currency exchange rates | (10,620) | (482) | (11,102) | ||||||||||||||||||||||||||||||||||||||
Balance – March 31, 2020 | $ | 2,265,331 | $ | 389,801 | $ | 2,655,132 | |||||||||||||||||||||||||||||||||||
Accumulated Amortization | |||||||||||||||||||||||||||||||||||||||||
Balance – March 31, 2019 | $ | — | $ | 156,264 | $ | 156,264 | |||||||||||||||||||||||||||||||||||
Additions | — | 19,633 | 19,633 | ||||||||||||||||||||||||||||||||||||||
Effects of foreign currency exchange rates | — | (156) | (156) | ||||||||||||||||||||||||||||||||||||||
Balance – March 31, 2020 | $ | — | $ | 175,741 | $ | 175,741 | |||||||||||||||||||||||||||||||||||
Intangible assets, net – March 31, 2020 | $ | 2,265,331 | $ | 214,060 | $ | 2,479,391 | |||||||||||||||||||||||||||||||||||
Intangible Assets, net by Reportable Segment: | |||||||||||||||||||||||||||||||||||||||||
North American OTC Healthcare | $ | 2,195,617 | $ | 209,604 | $ | 2,405,221 | |||||||||||||||||||||||||||||||||||
International OTC Healthcare | 69,714 | 4,456 | 74,170 | ||||||||||||||||||||||||||||||||||||||
Intangible assets, net – March 31, 2020 | $ | 2,265,331 | $ | 214,060 | $ | 2,479,391 |
Year Ended March 31, 2019 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) |
Indefinite-
Lived Tradenames |
Finite-Lived
Tradenames and Customer Relationships |
Totals | ||||||||||||||||||||||||||||||||||||||
Gross Carrying Amounts | |||||||||||||||||||||||||||||||||||||||||
Balance – March 31, 2018 | $ | 2,490,303 | $ | 441,314 | $ | 2,931,617 | |||||||||||||||||||||||||||||||||||
Reclassifications | (25,152) | 25,152 | — | ||||||||||||||||||||||||||||||||||||||
Reductions | (30,562) | (34,889) | (65,451) | ||||||||||||||||||||||||||||||||||||||
Tradename impairment | (154,967) | (40,953) | (195,920) | ||||||||||||||||||||||||||||||||||||||
Effects of foreign currency exchange rates | (6,431) | (341) | (6,772) | ||||||||||||||||||||||||||||||||||||||
Balance – March 31, 2019 | $ | 2,273,191 | $ | 390,283 | $ | 2,663,474 | |||||||||||||||||||||||||||||||||||
Accumulated Amortization | |||||||||||||||||||||||||||||||||||||||||
Balance – March 31, 2018 | $ | — | $ | 150,701 | $ | 150,701 | |||||||||||||||||||||||||||||||||||
Additions | — | 21,767 | 21,767 | ||||||||||||||||||||||||||||||||||||||
Reductions | — | (16,136) | (16,136) | ||||||||||||||||||||||||||||||||||||||
Effects of foreign currency exchange rates | — | (68) | (68) | ||||||||||||||||||||||||||||||||||||||
Balance – March 31, 2019 | $ | — | $ | 156,264 | $ | 156,264 | |||||||||||||||||||||||||||||||||||
Intangible assets, net – March 31, 2019 | $ | 2,273,191 | $ | 234,019 | $ | 2,507,210 | |||||||||||||||||||||||||||||||||||
Intangible Assets, net by Reportable Segment: | |||||||||||||||||||||||||||||||||||||||||
North American OTC Healthcare | $ | 2,195,617 | $ | 228,743 | $ | 2,424,360 | |||||||||||||||||||||||||||||||||||
International OTC Healthcare | 77,574 | 5,276 | 82,850 | ||||||||||||||||||||||||||||||||||||||
Intangible assets, net – March 31, 2019 | $ | 2,273,191 | $ | 234,019 | $ | 2,507,210 |
(In thousands) | |||||
Year Ending March 31, | Amount | ||||
2021 | 19,606 | ||||
2022 | 19,605 | ||||
2023 | 19,605 | ||||
2024 | 19,578 | ||||
2025 | 17,535 | ||||
Thereafter | 118,131 | ||||
$ | 214,060 |
(In thousands) | ||||||||||||||||||||
Year Ending March 31, | Operating Leases | Financing Leases | Total | |||||||||||||||||
2021 | $ | 7,019 | $ | 1,404 | $ | 8,423 | ||||||||||||||
2022 | 6,497 | 1,404 | 7,901 | |||||||||||||||||
2023 | 6,305 | 1,404 | 7,709 | |||||||||||||||||
2024 | 6,294 | 1,404 | 7,698 | |||||||||||||||||
2025 | 4,123 | 700 | 4,823 | |||||||||||||||||
Thereafter | 4,973 | — | 4,973 | |||||||||||||||||
Total undiscounted lease payments | 35,211 | 6,316 | 41,527 | |||||||||||||||||
Less amount of lease payments representing interest | (4,722) | (470) | (5,192) | |||||||||||||||||
Total present value of lease payments | $ | 30,489 | $ | 5,846 | $ | 36,335 |
March 31, 2020 | ||||||||||||||
Weighted average remaining lease term (years) | ||||||||||||||
Operating leases | 5.40 | |||||||||||||
Financing leases | 4.50 | |||||||||||||
Weighted average discount rate | ||||||||||||||
Operating leases | 5.28 | % | ||||||||||||
Financing leases | 3.55 | % |
(In thousands) | Facilities | Equipment | Total | ||||||||||||||
Year Ending March 31, | |||||||||||||||||
2020 | $ | 2,828 | $ | 314 | $ | 3,142 | |||||||||||
2021 | 2,633 | 248 | 2,881 | ||||||||||||||
2022 | 2,265 | 213 | 2,478 | ||||||||||||||
2023 | 1,684 | 105 | 1,789 | ||||||||||||||
2024 | 1,705 | — | 1,705 | ||||||||||||||
Thereafter | 6,780 | — | 6,780 | ||||||||||||||
$ | 17,895 | $ | 880 | $ | 18,775 |
March 31, | |||||||||||||||||
(In thousands) | 2020 | 2019 | |||||||||||||||
Accrued marketing costs | $ | 34,450 | $ | 31,228 | |||||||||||||
Accrued compensation costs | 13,393 | 10,958 | |||||||||||||||
Accrued broker commissions | 1,491 | 1,361 | |||||||||||||||
Income taxes payable | 3,210 | 88 | |||||||||||||||
Accrued professional fees | 4,183 | 2,441 | |||||||||||||||
Accrued production costs | 5,628 | 6,788 | |||||||||||||||
Accrued sales tax | 1,917 | 4 | |||||||||||||||
Other accrued liabilities | 6,491 | 7,795 | |||||||||||||||
$ | 70,763 | $ | 60,663 |
(In thousands) | |||||||||||
Year Ending March 31, | Amount | ||||||||||
2021 | $ | — | |||||||||
2022 | — | ||||||||||
2023 | — | ||||||||||
2024 | 1,290,000 | ||||||||||
2025 | 55,000 | ||||||||||
Thereafter | 400,000 | ||||||||||
$ | 1,745,000 |
March 31, 2020 | March 31, 2019 | |||||||||||||||||||||||||||||||||||||
(In thousands) | Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||||||||||||||||
2016 Senior Notes | $ | 600,000 | $ | 603,000 | $ | 600,000 | $ | 606,000 | ||||||||||||||||||||||||||||||
2013 Senior Notes | — | — | 400,000 | 401,500 | ||||||||||||||||||||||||||||||||||
2019 Senior Notes | 400,000 | 386,000 | — | — | ||||||||||||||||||||||||||||||||||
2012 Term B-5 Loans | 690,000 | 638,250 | 738,000 | 728,775 | ||||||||||||||||||||||||||||||||||
2012 ABL Revolver | 55,000 | 55,000 | 75,000 | 75,000 | ||||||||||||||||||||||||||||||||||
Interest rate swaps | 6,317 | 6,317 | — | — |
(In thousands) | Hedge Type | Final Settlement Date | Notional Amount | Other Accrued Liabilities | Other Long-Term Liabilities | |||||||||||||||||||||||||||
Interest rate swap | Cash flow | 1/31/2021 | $ | 200,000 | $ | (1,905) | $ | — | ||||||||||||||||||||||||
Interest rate swap | Cash flow | 1/31/2022 | $ | 200,000 | — | (4,412) | ||||||||||||||||||||||||||
Total fair value | $ | (1,905) | $ | (4,412) |
(In thousands) | Location | 2020 | 2019 | ||||||||||||||||||||
Loss Recognized in Other Comprehensive Loss (effective portion) | Other comprehensive income (loss) | (4,864) | $ | — | |||||||||||||||||||
Gain (Loss) Reclassified from Accumulative Other Comprehensive Loss into Income | Interest expense | — | — | ||||||||||||||||||||
Gain Recognized as Income | Interest expense | 62 | — |
Year Ended March 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Shares repurchased pursuant to the provisions of the various employee restricted stock awards: | |||||||||||||||||
Number of shares | 31,018 | 68,939 | |||||||||||||||
Average price per share | $31.39 | $33.09 | |||||||||||||||
Total amount repurchased | $1.0 million | $2.3 million | |||||||||||||||
Shares repurchased in conjunction with our share repurchase program: | |||||||||||||||||
Number of shares | 1,816,901 | 1,449,750 | |||||||||||||||
Average price per share | $31.22 | $34.47 | |||||||||||||||
Total amount repurchased | $56.7 million | $50.0 million |
RSUs
|
Shares
(in thousands) |
Weighted-Average
Grant-Date Fair Value |
||||||||||||
Vested and unvested at March 31, 2017 | 350.1 | $ | 39.29 | |||||||||||
Granted | 105.8 | 55.61 | ||||||||||||
Vested and issued | (53.3) | 34.30 | ||||||||||||
Forfeited | (9.1) | 48.76 | ||||||||||||
Vested and unvested at March 31, 2018 | 393.5 | 44.13 | ||||||||||||
Vested at March 31, 2018 | 90.5 | 29.88 | ||||||||||||
Granted | 226.4 | 30.09 | ||||||||||||
Vested and issued | (175.8) | 43.05 | ||||||||||||
Forfeited | (31.1) | 48.32 | ||||||||||||
Vested and unvested at March 31, 2019 | 413.0 | 36.58 | ||||||||||||
Vested at March 31, 2019 | 113.2 | 31.05 | ||||||||||||
Granted | 220.3 | 31.02 | ||||||||||||
Vested and issued | (87.0) | 46.78 | ||||||||||||
Forfeited | (34.2) | 35.97 | ||||||||||||
Vested and unvested at March 31, 2020 | 512.1 | 32.49 | ||||||||||||
Vested at March 31, 2020 | 124.2 | 30.54 |
Year Ended March 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
Expected volatility | 30.9-31.3 | % | 29.6 | % | 35.2 | % | |||||||||||||||||||||||
Expected dividends | — | — | — | ||||||||||||||||||||||||||
Expected term in years | 6.0 to 7.0 | 6.0 | 6.0 | ||||||||||||||||||||||||||
Risk-free rate | 2.3% to 2.4% | 2.9 | % | 2.2 | % | ||||||||||||||||||||||||
Weighted-average grant date fair value of options granted | $ | 10.83 | $ | 10.22 | $ | 21.20 |
Options |
Shares
(in thousands) |
Weighted-Average
Exercise Price |
Weighted-
Average Remaining Contractual Term |
Aggregate
Intrinsic Value (in thousands) |
||||||||||||||||||||||
Outstanding at March 31, 2017 | 772.3 | $ | 37.70 | |||||||||||||||||||||||
Granted | 182.8 | 56.11 | ||||||||||||||||||||||||
Exercised | (55.7) | 29.08 | ||||||||||||||||||||||||
Forfeited or expired | (26.2) | 48.19 | ||||||||||||||||||||||||
Outstanding at March 31, 2018 | 873.2 | 41.79 | ||||||||||||||||||||||||
Granted | 294.5 | 29.46 | ||||||||||||||||||||||||
Exercised | (97.7) | 30.02 | ||||||||||||||||||||||||
Forfeited or expired | (125.4) | 47.16 | ||||||||||||||||||||||||
Outstanding at March 31, 2019 | 944.6 | 38.45 | ||||||||||||||||||||||||
Granted | 302.7 | 30.53 | ||||||||||||||||||||||||
Exercised | (47.9) | 27.60 | ||||||||||||||||||||||||
Forfeited or expired | (179.2) | 42.49 | ||||||||||||||||||||||||
Outstanding at March 31, 2020 | 1,020.2 | 35.90 | 6.7 | $ | 6,214 | |||||||||||||||||||||
Exercisable at March 31, 2020 | 566.2 | 38.66 | 5.2 | $ | 3,514 |
March 31, | March 31, | ||||||||||
(In thousands) | 2020 | 2019 | |||||||||
Components of Accumulated Other Comprehensive Loss | |||||||||||
Cumulative translation adjustment | $ | (39,241) | $ | (26,878) | |||||||
Unrealized loss on interest rate swaps, net of tax of $1,453 | (4,864) | — | |||||||||
Unrecognized net (loss) gain on pension plans, net of tax of $(17) and $338, respectively | (56) | 1,131 | |||||||||
Accumulated other comprehensive loss, net of tax | $ | (44,161) | $ | (25,747) |
Year Ended March 31, | |||||||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||
United States | $ | 167,508 | $ | (52,313) | $ | 84,435 | |||||||||||||||||||||||
Foreign | 23,643 | 14,258 | 22,651 | ||||||||||||||||||||||||||
$ | 191,151 | $ | (38,055) | $ | 107,086 |
Year Ended March 31, | |||||||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||
Current | |||||||||||||||||||||||||||||
Federal | $ | 24,051 | $ | 27,629 | $ | 31,327 | |||||||||||||||||||||||
State | 2,506 | 3,156 | 2,686 | ||||||||||||||||||||||||||
Foreign | 8,473 | 7,193 | 5,588 | ||||||||||||||||||||||||||
Deferred | |||||||||||||||||||||||||||||
Federal | 14,119 | (35,760) | (270,796) | ||||||||||||||||||||||||||
State | (341) | (4,101) | (1,240) | ||||||||||||||||||||||||||
Foreign | 62 | (372) | (49) | ||||||||||||||||||||||||||
Total provision (benefit) for income taxes | $ | 48,870 | $ | (2,255) | $ | (232,484) |
March 31, | |||||||||||||||||
(In thousands) | 2020 | 2019 | |||||||||||||||
Deferred Tax Assets | |||||||||||||||||
Allowance for doubtful accounts and sales returns | $ | 4,996 | $ | 3,285 | |||||||||||||
Inventory capitalization | 1,168 | 1,245 | |||||||||||||||
Inventory reserves | 705 | 1,267 | |||||||||||||||
Net operating loss carryforwards | 115 | 226 | |||||||||||||||
State income taxes | 8,896 | 9,003 | |||||||||||||||
Accrued liabilities | 1,308 | 1,785 | |||||||||||||||
Accrued compensation | 4,472 | 4,416 | |||||||||||||||
Stock compensation | 4,334 | 4,206 | |||||||||||||||
Foreign tax credit | 5,441 | 3,236 | |||||||||||||||
Interest | — | 154 | |||||||||||||||
Lease liability | 8,228 | — | |||||||||||||||
Unrealized foreign exchange loss | 257 | — | |||||||||||||||
Other | 13,191 | 7,691 | |||||||||||||||
Total deferred tax assets | $ | 53,111 | $ | 36,514 | |||||||||||||
Deferred Tax Liabilities | |||||||||||||||||
Property, plant and equipment | $ | (7,590) | $ | (6,002) | |||||||||||||
Intangible assets | (438,601) | (425,134) | |||||||||||||||
Deferred cumulative catch-up adjustments - revenue recognition adjustments | (522) | (721) | |||||||||||||||
Right-of-use asset | (7,876) | — | |||||||||||||||
Total deferred tax liabilities | $ | (454,589) | $ | (431,857) | |||||||||||||
Net deferred tax liability before valuation allowance | $ | (401,478) | $ | (395,343) | |||||||||||||
Valuation allowance | (5,441) | (3,236) | |||||||||||||||
Net deferred tax liability | $ | (406,919) | $ | (398,579) |
Year Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | % | % | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax provision (benefit) at statutory rate | $ | 40,142 | 21.0 | $ | (7,992) | 21.0 | $ | 37,480 | 35.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign tax provision (benefit) | 2,498 | 1.3 | 2,866 | (7.5) | (2,084) | (1.9) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
State income taxes, net of federal income tax benefit | 1,606 | 0.8 | (1,710) | 4.5 | 1,414 | 1.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of tax legislation | — | — | — | — | (268,244) | (250.5) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill impairment | — | — | 5,616 | (14.8) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
R&D | (320) | (0.2) | (629) | 1.7 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation limitations | 562 | 0.3 | 296 | (0.8) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Valuation allowance | 2,205 | 1.2 | 2,627 | (6.9) | (2,828) | (2.6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale | — | — | 1,312 | (3.4) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 2,177 | 1.2 | (4,641) | 12.1 | 1,778 | 1.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total provision (benefit) for income taxes | $ | 48,870 | 25.6 | $ | (2,255) | 5.9 | $ | (232,484) | (217.1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(In thousands) | |||||||||||||||||
Balance – beginning of year | $ | 9,874 | $ | 10,827 | $ | 3,651 | |||||||||||
Additions based on tax positions related to the current year | 495 | 585 | 7,286 | ||||||||||||||
Reductions based on lapse of statute of limitations | — | (650) | (110) | ||||||||||||||
Payments and other movements | — | (888) | — | ||||||||||||||
Balance – end of year | $ | 10,369 | $ | 9,874 | $ | 10,827 |
March 31, | |||||||||||||||||
(In thousands) | 2020 | 2019 | |||||||||||||||
Change in benefit obligation: | |||||||||||||||||
Projected benefit obligation at beginning of period | $ | 60,334 | $ | 61,882 | |||||||||||||
Interest cost | 2,327 | 2,380 | |||||||||||||||
Actuarial (gain) loss | 2,375 | (744) | |||||||||||||||
Benefits paid | (3,466) | (3,184) | |||||||||||||||
Projected benefit obligations at end of year | $ | 61,570 | $ | 60,334 | |||||||||||||
Change in plan assets: | |||||||||||||||||
Fair value of plan assets at beginning of period | $ | 51,115 | $ | 50,508 | |||||||||||||
Actual return on plan assets | 3,742 | 2,416 | |||||||||||||||
Employer contribution | 1,369 | 1,375 | |||||||||||||||
Benefits paid | (3,466) | (3,184) | |||||||||||||||
Fair value of plan assets at end of year | $ | 52,760 | $ | 51,115 | |||||||||||||
Funded status at end of year | $ | (8,810) | $ | (9,219) |
March 31, | |||||||||||||||||
(In thousands) | 2020 | 2019 | |||||||||||||||
Current liability | $ | 359 | 361 | ||||||||||||||
Long-term liability | 8,451 | 8,858 | |||||||||||||||
Total | $ | 8,810 | $ | 9,219 |
Year Ended March 31, | |||||||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||
Interest cost | $ | 2,327 | $ | 2,380 | $ | 2,529 | |||||||||||||||||||||||
Expected return on assets | (2,886) | (3,070) | (2,901) | ||||||||||||||||||||||||||
Net periodic benefit (income) | $ | (559) | $ | (690) | $ | (372) |
(In thousands) | Pension Benefits | ||||
Employer contributions: | |||||
2021 (expectation) to participant benefits | $ | 1,359 | |||
Expected benefit payments year ending March 31, | |||||
2021 | $ | 3,476 | |||
2022 | 3,592 | ||||
2023 | 3,669 | ||||
2024 | 3,743 | ||||
2025 | 3,718 | ||||
2026-2030 | 18,670 |
Percentage of Plan Assets | |||||||||||||||||||||||
Asset Category | Target Allocation | March 31, 2020 | March 31, 2019 | ||||||||||||||||||||
Domestic large cap equities | 16 | % | 16 | % | 18 | % | |||||||||||||||||
Domestic small/mid cap equities | 6 | 5 | 5 | ||||||||||||||||||||
International equities | 14 | 15 | 15 | ||||||||||||||||||||
Real estate | 5 | 5 | — | ||||||||||||||||||||
Fixed income and cash | 59 | 59 | 62 | ||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % |
March 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Key assumptions: | |||||||||||||||||
Discount rate | 3.37% to 3.55% | 3.80% to 3.99% | |||||||||||||||
Expected return on plan assets, net of administrative fees | 5.00% | 5.75% | |||||||||||||||
Rate of compensation increase | — | — |
(In thousands) | |||||
Year Ending March 31, | Amount | ||||
2021 | $ | 12,163 | |||
2022 | 11,929 | ||||
2023 | 4,117 | ||||
2024 | 2,364 | ||||
2025 | 2,399 | ||||
Thereafter | 6,153 | ||||
$ | 39,125 |
Year Ended March 31, 2020 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) |
North American OTC
Healthcare |
International OTC
Healthcare |
Household
Cleaning |
Consolidated | |||||||||||||||||||||||||||||||||||||
Total segment revenues* | $ | 859,368 | $ | 103,642 | $ | — | $ | 963,010 | |||||||||||||||||||||||||||||||||
Cost of sales | 372,133 | 38,654 | — | 410,787 | |||||||||||||||||||||||||||||||||||||
Gross profit | 487,235 | 64,988 | — | 552,223 | |||||||||||||||||||||||||||||||||||||
Advertising and promotion | 127,972 | 19,222 | — | 147,194 | |||||||||||||||||||||||||||||||||||||
Contribution margin | $ | 359,263 | $ | 45,766 | $ | — | 405,029 | ||||||||||||||||||||||||||||||||||
Other operating expenses | 113,874 | ||||||||||||||||||||||||||||||||||||||||
Operating income | 291,155 | ||||||||||||||||||||||||||||||||||||||||
Year Ended March 31, 2019 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) |
North American OTC
Healthcare |
International OTC
Healthcare |
Household
Cleaning |
Consolidated | |||||||||||||||||||||||||||||||||||||
Total segment revenues* | $ | 862,446 | $ | 93,520 | $ | 19,811 | $ | 975,777 | |||||||||||||||||||||||||||||||||
Cost of sales | 364,533 | 39,080 | 16,588 | 420,201 | |||||||||||||||||||||||||||||||||||||
Gross profit | 497,913 | 54,440 | 3,223 | 555,576 | |||||||||||||||||||||||||||||||||||||
Advertising and promotion | 126,374 | 16,286 | 430 | 143,090 | |||||||||||||||||||||||||||||||||||||
Contribution margin | $ | 371,539 | $ | 38,154 | $ | 2,793 | 412,486 | ||||||||||||||||||||||||||||||||||
Other operating expenses** | 344,983 | ||||||||||||||||||||||||||||||||||||||||
Operating income | 67,503 | ||||||||||||||||||||||||||||||||||||||||
Year Ended March 31, 2018 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) |
North American OTC
Healthcare |
International OTC
Healthcare |
Household
Cleaning |
Consolidated | |||||||||||||||||||||||||||||||||||||
Total segment revenues* | $ | 868,874 | $ | 91,658 | $ | 80,647 | $ | 1,041,179 | |||||||||||||||||||||||||||||||||
Cost of sales | 357,298 | 40,244 | 67,132 | 464,674 | |||||||||||||||||||||||||||||||||||||
Gross profit | 511,576 | 51,414 | 13,515 | 576,505 | |||||||||||||||||||||||||||||||||||||
Advertising and promotion | 129,058 | 16,267 | 1,961 | 147,286 | |||||||||||||||||||||||||||||||||||||
Contribution margin | $ | 382,518 | $ | 35,147 | $ | 11,554 | 429,219 | ||||||||||||||||||||||||||||||||||
Other operating expenses** | 213,745 | ||||||||||||||||||||||||||||||||||||||||
Operating income | 215,474 | ||||||||||||||||||||||||||||||||||||||||
Year Ended March 31, 2020 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) |
North American OTC
Healthcare |
International OTC
Healthcare |
Household
Cleaning |
Consolidated | |||||||||||||||||||||||||||||||||||||
Analgesics | $ | 113,130 | $ | 877 | $ | — | $ | 114,007 | |||||||||||||||||||||||||||||||||
Cough & Cold | 87,601 | 23,505 | — | 111,106 | |||||||||||||||||||||||||||||||||||||
Women's Health | 239,330 | 12,221 | — | 251,551 | |||||||||||||||||||||||||||||||||||||
Gastrointestinal | 130,088 | 42,820 | — | 172,908 | |||||||||||||||||||||||||||||||||||||
Eye & Ear Care | 100,245 | 11,911 | — | 112,156 | |||||||||||||||||||||||||||||||||||||
Dermatologicals | 100,591 | 2,421 | — | 103,012 | |||||||||||||||||||||||||||||||||||||
Oral Care | 83,323 | 9,882 | — | 93,205 | |||||||||||||||||||||||||||||||||||||
Other OTC | 5,060 | 5 | — | 5,065 | |||||||||||||||||||||||||||||||||||||
Household Cleaning | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Total segment revenues | $ | 859,368 | $ | 103,642 | $ | — | $ | 963,010 |
Year Ended March 31, 2019 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) |
North American OTC
Healthcare |
International OTC
Healthcare |
Household
Cleaning |
Consolidated | |||||||||||||||||||||||||||||||||||||
Analgesics | $ | 113,563 | $ | 615 | $ | — | $ | 114,178 | |||||||||||||||||||||||||||||||||
Cough & Cold | 83,168 | 19,955 | — | 103,123 | |||||||||||||||||||||||||||||||||||||
Women's Health | 244,927 | 13,552 | — | 258,479 | |||||||||||||||||||||||||||||||||||||
Gastrointestinal | 125,416 | 35,046 | — | 160,462 | |||||||||||||||||||||||||||||||||||||
Eye & Ear Care | 101,128 | 11,709 | — | 112,837 | |||||||||||||||||||||||||||||||||||||
Dermatologicals | 95,801 | 2,171 | — | 97,972 | |||||||||||||||||||||||||||||||||||||
Oral Care | 92,964 | 10,468 | — | 103,432 | |||||||||||||||||||||||||||||||||||||
Other OTC | 5,479 | 4 | — | 5,483 | |||||||||||||||||||||||||||||||||||||
Household Cleaning | — | — | 19,811 | 19,811 | |||||||||||||||||||||||||||||||||||||
Total segment revenues | $ | 862,446 | $ | 93,520 | $ | 19,811 | $ | 975,777 |
Year Ended March 31, 2018 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) |
North American OTC
Healthcare |
International OTC
Healthcare |
Household
Cleaning |
Consolidated | |||||||||||||||||||||||||||||||||||||
Analgesics | $ | 118,610 | $ | 807 | $ | — | $ | 119,417 | |||||||||||||||||||||||||||||||||
Cough & Cold | 93,537 | 18,310 | — | 111,847 | |||||||||||||||||||||||||||||||||||||
Women's Health | 247,244 | 12,140 | — | 259,384 | |||||||||||||||||||||||||||||||||||||
Gastrointestinal | 117,627 | 34,609 | — | 152,236 | |||||||||||||||||||||||||||||||||||||
Eye & Ear Care | 92,308 | 11,744 | — | 104,052 | |||||||||||||||||||||||||||||||||||||
Dermatologicals | 94,775 | 2,113 | — | 96,888 | |||||||||||||||||||||||||||||||||||||
Oral Care | 99,072 | 11,930 | — | 111,002 | |||||||||||||||||||||||||||||||||||||
Other OTC | 5,701 | 5 | — | 5,706 | |||||||||||||||||||||||||||||||||||||
Household Cleaning | — | — | 80,647 | 80,647 | |||||||||||||||||||||||||||||||||||||
Total segment revenues | $ | 868,874 | $ | 91,658 | $ | 80,647 | $ | 1,041,179 |
Year Ended March 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
United States | $ | 812,653 | $ | 837,049 | $ | 903,511 | |||||||||||||||||||||||
Rest of world | 150,357 | 138,728 | 137,668 | ||||||||||||||||||||||||||
Total | $ | 963,010 | $ | 975,777 | $ | 1,041,179 |
March 31, 2020
(In thousands)
|
North American OTC
Healthcare |
International OTC
Healthcare |
Consolidated | ||||||||||||||||||||
Goodwill | $ | 546,643 | $ | 28,536 | $ | 575,179 | |||||||||||||||||
Intangible assets | |||||||||||||||||||||||
Indefinite-lived | 2,195,617 | 69,714 | 2,265,331 | ||||||||||||||||||||
Finite-lived | 209,604 | 4,456 | 214,060 | ||||||||||||||||||||
Intangible assets, net | $ | 2,405,221 | 74,170 | 2,479,391 | |||||||||||||||||||
Total | $ | 2,951,864 | $ | 102,706 | $ | 3,054,570 |
March 31, 2019
(In thousands)
|
North American OTC
Healthcare |
International OTC
Healthcare |
Consolidated | ||||||||||||||||||||
Goodwill | $ | 547,393 | $ | 31,190 | $ | 578,583 | |||||||||||||||||
Intangible assets | |||||||||||||||||||||||
Indefinite-lived | 2,195,617 | 77,574 | 2,273,191 | ||||||||||||||||||||
Finite-lived | 228,743 | 5,276 | 234,019 | ||||||||||||||||||||
Intangible assets, net | 2,424,360 | 82,850 | 2,507,210 | ||||||||||||||||||||
Total | $ | 2,971,753 | $ | 114,040 | $ | 3,085,793 |
Year Ended March 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
United States | $ | 2,951,864 | $ | 2,971,753 | |||||||||||||
Rest of world | 102,706 | 114,040 | |||||||||||||||
Total | $ | 3,054,570 | $ | 3,085,793 |
Quarterly Period Ended | ||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except for per share data) |
June 30,
2019 |
September 30,
2019 |
December 31,
2019 |
March 31,
2020 |
||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 232,154 | $ | 238,069 | $ | 241,552 | $ | 251,235 | ||||||||||||||||||||||||||||||||||||
Cost of sales | 98,087 | 101,318 | 104,057 | 107,325 | ||||||||||||||||||||||||||||||||||||||||
Gross profit | 134,067 | 136,751 | 137,495 | 143,910 | ||||||||||||||||||||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||||||||||||||||||
Advertising and promotion | 34,801 | 38,667 | 33,559 | 40,167 | ||||||||||||||||||||||||||||||||||||||||
General and administrative | 21,706 | 22,514 | 21,308 | 23,584 | ||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 6,074 | 6,222 | 6,224 | 6,242 | ||||||||||||||||||||||||||||||||||||||||
Total operating expenses | 62,581 | 67,403 | 61,091 | 69,993 | ||||||||||||||||||||||||||||||||||||||||
Operating income | 71,486 | 69,348 | 76,404 | 73,917 | ||||||||||||||||||||||||||||||||||||||||
Interest expense, net of interest income | 25,020 | 24,477 | 24,275 | 22,452 | ||||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | — | — | 2,155 | — | ||||||||||||||||||||||||||||||||||||||||
Other expense (income), net | 416 | 859 | (580) | 930 | ||||||||||||||||||||||||||||||||||||||||
Income before income taxes | 46,050 | 44,012 | 50,554 | 50,535 | ||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | 12,125 | 10,760 | 12,496 | 13,489 | ||||||||||||||||||||||||||||||||||||||||
Net income | $ | 33,925 | $ | 33,252 | $ | 38,058 | $ | 37,046 | ||||||||||||||||||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.66 | $ | 0.66 | $ | 0.76 | $ | 0.74 | ||||||||||||||||||||||||||||||||||||
Diluted | $ | 0.65 | $ | 0.65 | $ | 0.75 | $ | 0.73 | ||||||||||||||||||||||||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||||||||||||||||||||||||||
Basic | 51,697 | 50,455 | 50,378 | 50,367 | ||||||||||||||||||||||||||||||||||||||||
Diluted | 52,047 | 50,811 | 50,831 | 50,878 | ||||||||||||||||||||||||||||||||||||||||
Comprehensive (loss) income, net of tax: | ||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustments | (224) | (3,584) | 3,497 | (12,052) | ||||||||||||||||||||||||||||||||||||||||
Unrealized loss on interest rate swaps | — | — | — | (4,864) | ||||||||||||||||||||||||||||||||||||||||
Unrecognized net gain on pension plans
|
— | — | — | (1,187) | ||||||||||||||||||||||||||||||||||||||||
Total other comprehensive (loss) income | (224) | (3,584) | 3,497 | (18,103) | ||||||||||||||||||||||||||||||||||||||||
Comprehensive income | $ | 33,701 | $ | 29,668 | $ | 41,555 | $ | 18,943 |
Quarterly Period Ended | ||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except for per share data) |
June 30,
2018 |
September 30,
2018 |
December 31,
2018 |
March 31,
2019 |
||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 253,980 | $ | 239,357 | $ | 241,414 | $ | 241,026 | ||||||||||||||||||||||||||||||||||||
Cost of sales | 113,357 | 101,885 | 102,179 | 102,780 | ||||||||||||||||||||||||||||||||||||||||
Gross profit | 140,623 | 137,472 | 139,235 | 138,246 | ||||||||||||||||||||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||||||||||||||||||
Advertising and promotion | 37,111 | 37,042 | 34,504 | 34,433 | ||||||||||||||||||||||||||||||||||||||||
General and administrative | 23,941 | 24,034 | 20,485 | 21,299 | ||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 7,084 | 6,756 | 6,705 | 6,502 | ||||||||||||||||||||||||||||||||||||||||
Gain on divestiture | — | (1,284) | — | — | ||||||||||||||||||||||||||||||||||||||||
Goodwill and tradename impairment | — | — | — | 229,461 | ||||||||||||||||||||||||||||||||||||||||
Total operating expenses | 68,136 | 66,548 | 61,694 | 291,695 | ||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 72,487 | 70,924 | 77,541 | (153,449) | ||||||||||||||||||||||||||||||||||||||||
Interest expense, net of interest income | 25,940 | 27,070 | 26,327 | 25,745 | ||||||||||||||||||||||||||||||||||||||||
Other expense (income), net | 87 | 335 | 218 | (164) | ||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 46,460 | 43,519 | 50,996 | (179,030) | ||||||||||||||||||||||||||||||||||||||||
Provision (benefit) for income taxes | 11,994 | 12,678 | 12,829 | (39,756) | ||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 34,466 | $ | 30,841 | $ | 38,167 | $ | (139,274) | ||||||||||||||||||||||||||||||||||||
Earnings (loss) per share: | ||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.65 | $ | 0.59 | $ | 0.74 | $ | (2.68) | ||||||||||||||||||||||||||||||||||||
Diluted | $ | 0.65 | $ | 0.59 | $ | 0.73 | $ | (2.68) | ||||||||||||||||||||||||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||||||||||||||||||||||||||
Basic | 52,640 | 51,841 | 51,881 | 51,912 | ||||||||||||||||||||||||||||||||||||||||
Diluted | 52,942 | 52,153 | 52,202 | 51,912 | ||||||||||||||||||||||||||||||||||||||||
Comprehensive (loss) income, net of tax: | ||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustments | (2,974) | (2,145) | (2,020) | 659 | ||||||||||||||||||||||||||||||||||||||||
Unrecognized net loss on pension plans
|
— | — | — | 48 | ||||||||||||||||||||||||||||||||||||||||
Total other comprehensive (loss) income | (2,974) | (2,145) | (2,020) | 707 | ||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | $ | 31,492 | $ | 28,696 | $ | 36,147 | $ | (138,567) |
(In thousands) |
Balance at
Beginning of Year |
Amounts
Charged to Expense |
Deductions
|
Other
|
Balance at
End of Year |
|||||||||||||||||||||||||||
Year Ended March 31, 2020 | ||||||||||||||||||||||||||||||||
Reserves for sales returns and allowance | $ | 8,973 | $ | 57,505 | $ | (50,669) | $ | — | $ | 15,809 | ||||||||||||||||||||||
Reserves for trade promotions | 15,491 | 88,502 | (85,604) | — | 18,389 | |||||||||||||||||||||||||||
Reserves for consumer coupon redemptions | 1,175 | 4,555 | (3,667) | — | 2,063 | |||||||||||||||||||||||||||
Allowance for doubtful accounts | 1,259 | 750 | (624) | — | 1,385 | |||||||||||||||||||||||||||
Deferred tax valuation allowance | 3,236 | 2,205 |
(a)
|
— | — | 5,441 | ||||||||||||||||||||||||||
Year Ended March 31, 2019 | ||||||||||||||||||||||||||||||||
Reserves for sales returns and allowance | 8,813 | 56,276 | (56,116) | — | 8,973 | |||||||||||||||||||||||||||
Reserves for trade promotions | 13,062 |
(b)
|
90,844 | (88,415) | — | 15,491 | ||||||||||||||||||||||||||
Reserves for consumer coupon redemptions | 2,645 | 5,199 | (6,669) | — | 1,175 | |||||||||||||||||||||||||||
Allowance for doubtful accounts | 1,203 | 203 | (147) | — | 1,259 | |||||||||||||||||||||||||||
Deferred tax valuation allowance | 609 | 2,627 |
(c)
|
— | — | 3,236 | ||||||||||||||||||||||||||
Year Ended March 31, 2018 | ||||||||||||||||||||||||||||||||
Reserves for sales returns and allowance | 9,429 | 62,953 | (63,569) | — | 8,813 | |||||||||||||||||||||||||||
Reserves for trade promotions | 15,193 | 78,669 | (82,427) | — | 11,435 | |||||||||||||||||||||||||||
Reserves for consumer coupon redemptions | 4,614 | 7,283 | (9,252) | — | 2,645 | |||||||||||||||||||||||||||
Allowance for doubtful accounts | 1,352 | 187 | (336) | — | 1,203 | |||||||||||||||||||||||||||
Deferred tax valuation allowance | 3,437 | — | — | (2,828) |
(d)
|
609 |
Prestige Consumer Healthcare Inc. | ||
Report of Independent Registered Public Accounting Firm,
PricewaterhouseCoopers LLP
|
||
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) for each of the three years in
the period ended March 31, 2020 |
||
Consolidated Balance Sheets at March 31, 2020 and 2019 | ||
Consolidated Statements of Changes in Stockholders’ Equity for each of the three years in the period ended March 31, 2020 | ||
Consolidated Statements of Cash Flows for each of the three years
in the period ended March 31, 2020 |
||
Notes to Consolidated Financial Statements | ||
Schedule II—Valuation and Qualifying Accounts for the years ended March 31, 2020, 2019 and 2018 |
Exhibit No. | Description | |||||||
2.1 |
Stock Purchase Agreement, dated April 25, 2014, by and among Medtech Products Inc., Insight Pharmaceuticals Corporation, SPC Partners IV, L.P. and the other seller parties thereto (filed as Exhibit 2.5 to the Company's Annual Report on Form 10-K filed with the SEC on May 19, 2014).+
|
|||||||
2.2 |
Agreement and Plan of Merger, dated as of December 21, 2016, by and among Medtech Products Inc., AETAGE LLC, C.B. Fleet TopCo, LLC and Gryphon Partners 3.5, L.P. (filed as Exhibit 2.1 to the Company's Quarterly Report on Form 10-Q filed with the SEC on February 2, 2017).+
|
|||||||
3.1 |
Amended and Restated Certificate of Incorporation of Prestige Consumer Healthcare Inc. (filed as Exhibit 3.1 to the Company's Form S-1/A filed with the SEC on February 8, 2005).+
|
|||||||
3.1.1 |
Amendment to Amended and Restated Certificate of Incorporation of Prestige Consumer Healthcare Inc. (filed as Exhibit 3.1 to the Company's Current Report on Form 8-K filed with the SEC on August 2, 2018).+
|
|||||||
3.2 |
Amended and Restated Bylaws of Prestige Consumer Healthcare Inc. as amended, effective October 29, 2018 (filed as Exhibit 3.2 to the Company's Quarterly Report on form 10-Q filed with the SEC on February 7, 2019).+
|
|||||||
3.3 |
Certificate of Designations of Series A Preferred Stock of Prestige Consumer Healthcare Inc. as filed with the Secretary of State of the State of Delaware on February 27, 2012 (filed as Exhibit 3.1 to the Company's Current Report on Form 8-K filed with the SEC on February 28, 2012).+
|
|||||||
4.1 |
Form of stock certificate for common stock (filed as Exhibit 4.1 to the Company's Form S-1/A filed with the SEC on January 26, 2005).+
|
|||||||
4.2 |
Indenture, dated as of December 17, 2013, among Prestige Brands, Inc., as issuer, the Company and certain subsidiaries, as guarantors, and U.S. Bank National Association, as Trustee with respect to 5.375% Senior Notes due 2021 (filed as Exhibit 4.1 to the Company’s Quarterly Report on Form 10-Q filed with the SEC on February 7, 2014).+
|
4.3 |
Second Supplemental Indenture, dated December 17, 2013 by and among Prestige Brands, Inc., the guarantors party thereto from time to time and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed with the SEC on December 17, 2013).+
|
|||||||
4.4 |
Form of 5.375% Senior Note due 2021 (filed as Exhibit 4.1 to the Company’s Quarterly Report on Form 10-Q filed with the SEC on February 7, 2014). +
|
|||||||
4.5 |
Indenture, dated as of February 19, 2016, among Prestige Brands, Inc., as issuer, the Company and certain subsidiaries, as guarantors, and U.S. Bank National Association, as Trustee with respect to 6.375% Senior Notes due 2024 (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K filed with the SEC on February 19, 2016). +
|
|||||||
4.6 |
First Supplemental Indenture, dated as of April 4, 2016, among DenTek Holdings, Inc. and DenTek Oral Care, Inc., as guaranteeing subsidiaries, Prestige Brands, Inc. and U.S. Bank National Association, as Trustee with respect to the 6.375% Senior Notes due 2024 (filed as Exhibit 4.6 to the Company’s Annual Report on Form 10-K filed with the SEC on May 17, 2016). +
|
|||||||
4.7 |
Third Supplemental Indenture, dated as of March 21, 2018, by and among Prestige Brands, Inc., as issuer, the Company and certain subsidiaries, as guarantors, and U.S. Bank National Association, as Trustee with respect to 6.375% Senior Notes due 2024 (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K filed with the SEC on March 21, 2018). +
|
|||||||
4.8 |
Form of 6.375% Senior Notes due 2024 (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K filed with the SEC on February 19, 2016). +
|
|||||||
4.9 |
Indenture, dated December 2, 2019, among Prestige Brands, Inc., the guarantors party thereto and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed with the SEC on December 2, 2019). +
|
|||||||
4.10 |
Form of 5.125% Senior Notes due 2028 (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed with the SEC on December 2, 2019). +
|
|||||||
4.11 |
Description of Prestige Consumer Healthcare Inc. Securities (filed as Exhibit 4.9 to the Company's Annual Report on Form 10-K filed with the SEC on May 13, 2019). +
|
|||||||
10.1 |
$660,000,000 Term Loan Credit Agreement, dated as of January 31, 2012, among Prestige Brands Inc., the Company, and certain subsidiaries of the Company as guarantors, Citibank, N.A., Citigroup Global Markets Inc., Morgan Stanley Senior Funding, Inc. and RBC Capital Markets (filed as Exhibit 10.3 to the Company's Annual Report on Form 10-K filed with the SEC on May 18, 2012). +
|
|||||||
10.2 |
Amendment No. 1, dated as of February 21, 2013, to the Term Loan Credit Agreement, dated as of January 31, 2012, among the Company, Prestige Brands, Inc., the other Guarantors from time to time party thereto, the lenders from time to time party thereto and Citibank, N.A. as administrative agent (filed as Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on February 25, 2013). +
|
|||||||
10.3 |
Amendment No. 2, dated as of September 3, 2014, to the Term Loan Credit Agreement, dated as of January 31, 2012, among the Company, Prestige Brands, Inc., the other Guarantors from time to time party thereto, the lenders from time to time party thereto and Citibank, N.A. as administrative agent (filed as Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed with the SEC on February 5, 2015).+
|
|||||||
10.4 |
Amendment No. 3, dated as of May 8, 2015, to the Term Loan Credit Agreement, dated as of January 31, 2012, among the Company, Prestige Brands, Inc., the other Guarantors from time to time party thereto, the lenders from time to time party thereto and Citibank, N.A. as administrative agent (filed as Exhibit 10.6 to the Company's Annual Report on Form 10-K filed with the SEC on May 14, 2015).+
|
|||||||
10.5 |
Amendment No. 4, dated as of January 26, 2017, to the Term Loan Credit Agreement, dated as of January 31, 2012, among the Company, Prestige Brands, Inc., the other guarantors from time to time party thereto, the lenders from time to time party thereto and Barclays Bank PLC (as successor in interest to Citibank, N.A.), as administrative agent (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on January 31, 2017). +
|
|||||||
10.6 |
Amendment No. 5, dated as of March 21, 2018, to the Term Loan Credit Agreement, dated as of January 31, 2012, among the Company, Prestige Brands, Inc., the other guarantors from time to time party thereto, the lenders from time to time party thereto and Barclays Bank PLC (as successor in interest to Citibank, N.A.), as administrative agent (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on March 21, 2018).+
|
|||||||
10.7 |
Term Loan Security Agreement, dated as of January 31, 2012, among Prestige Brands Inc., the Company and certain subsidiaries of the Company as guarantors, Citibank N.A. and U.S. Bank National Association, as Trustee (filed as Exhibit 10.4 to the Company's Annual Report on Form 10-K filed with the SEC on May 18, 2012).+
|
|||||||
10.8 |
$50,000,000 ABL Credit Agreement, dated as of January 31, 2012, Among Prestige Brands, Inc., the Company, certain subsidiaries of the Company as guarantors, Citibank, N.A., Citigroup Global Markets Inc., Morgan Stanley Senior Funding, Inc. and RBC Capital Markets filed (filed as Exhibit 10.5 to the Company's Annual Report on Form 10-K filed with the SEC on May 18, 2012.).+
|
10.9 |
Incremental Amendment, dated as of September 12, 2012, to the ABL Credit Agreement dated as of January 31, 2012 (filed as Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q filed with the SEC on November 7, 2012).+
|
|||||||
10.10 |
Amendment, dated as of June 11, 2013, to the ABL Credit Agreement dated as of January 31, 2012 (filed as Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q filed with the SEC on August 1, 2013).+
|
|||||||
10.11 |
Amendment No. 3, dated as of September 3, 2014, to the ABL Credit Agreement (as amended by that certain Incremental Amendment, dated as of September 12, 2012, and that certain Incremental Amendment, dated as of June 11, 2013), dated as of January 31, 2012, among the Company, Prestige Brands, Inc., the other Guarantors from time to time party thereto, the lenders from time to time party thereto and Citibank, N.A. as administrative agent, L/C issuer and swing line lender (filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K filed with the SEC on September 3, 2014). +
|
|||||||
10.12 |
Amendment No. 4, dated as of June 9, 2015, to the ABL Credit Agreement (as amended by that certain Incremental Amendment, dated as of September 12, 2012, and that certain Incremental Amendment, dated as of June 11, 2013, and that certain Incremental Amendment dated as of September 3, 2014), dated as of January 31, 2012, among the Company, Prestige Brands, Inc., the other Guarantors from time to time party thereto, the lenders from time to time party thereto and Citibank, N.A. as administrative agent, L/C issuer and swing line lender (filed as Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed with the SEC on August 6, 2015).+
|
|||||||
10.13 |
Amendment No. 5, dated as of February 4, 2016, to the ABL Credit Agreement, originally dated as of January 31, 2012, among the Company, Prestige Brands, Inc., the other Guarantors from time to time party thereto, the lenders from time to time party thereto and Citibank, N.A. as administrative agent, L/C issuer and swing line lender (filed as Exhibit 10.2 to the Company's Current Report on Form 8-K filed with the SEC on February 9, 2016). +
|
|||||||
10.14 |
Amendment No. 6, dated as of January 26, 2017, to the ABL Credit Agreement, originally dated as of January 31, 2012, among the Company, Prestige Brands, Inc., the other guarantors from time to time party thereto, the lenders from time to time party thereto and Citibank, N.A., as administrative agent, L/C issue and swing line lender (filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K filed with the SEC on January 31, 2017). +
|
|||||||
10.15 |
Amendment No. 7, dated as of December 11, 2019, to the ABL Credit Agreement, originally dated as of January 31, 2012, among the Company, Prestige Brands, Inc., the other guarantors from time to time party thereto, the lenders from time to time party thereto and Citibank, N.A., as administrative agent, L/C issue and swing line lender (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on December 12, 2019). +
|
|||||||
10.16 |
Agreement of Lease between RA 660 White Plains Road LLC and Prestige Brands, Inc. (filed as Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q filed with the SEC on August 9, 2012). +
|
|||||||
10.17 |
Amendment to Agreement of Lease between RA 660 White Plains Road LLC and Prestige Brands, Inc. (filed as Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed with the SEC on August 7, 2014). +
|
|||||||
10.18 |
Letter Agreement, dated August 26, 2014, to Amendment to Agreement of Lease between RA 660 White Plains Road LLC and Prestige Brands, Inc. (filed as Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q filed with the SEC on November 6, 2014).+
|
|||||||
10.19 |
Second Amendment to Lease between GHP 660 LLC and Prestige Brands, Inc. (filed as Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed with the SEC on November 2, 2017). +
|
|||||||
10.20 |
Master Logistics Services Agreement, dated May 13, 2019, by and between the Company and GEODIS Logistics LLC (filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed with the SEC on August 1, 2019). +†
|
|||||||
10.21 |
Prestige Brands Holdings, Inc. 2005 Long-Term Equity Incentive Plan (filed as Exhibit 10.38 to the Company’s Form S-1/A filed with the SEC on January 26, 2005).+#
|
|||||||
10.22 |
Form of Restricted Stock Grant Agreement (filed as Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed with the SEC on August 9, 2005). +#
|
|||||||
10.23 |
Form of Nonqualified Stock Option Agreement (filed as Exhibit 10.20 to the Company's Annual Report on Form 10-K filed with the SEC on May 19, 2014). +#
|
|||||||
10.24 |
Form of Award Agreement for Restricted Stock Units (filed as Exhibit 10.21 to the Company's Annual Report on Form 10-K filed with the SEC on May 19, 2014). +#
|
|||||||
10.25 |
Form of Nonqualified Stock Option Agreement for grants beginning Fiscal 2018 (filed as Exhibit 10.30 to the Company's Annual Report on Form 10-K filed with the SEC on May 17, 2017). +#
|
|||||||
10.26 |
Form of Award Agreement for Restricted Stock Units for grants beginning Fiscal 2018 (filed as Exhibit 10.31 to the Company's Annual Report on Form 10-K filed with the SEC on May 17, 2017). +#
|
|||||||
10.27 |
Form of Award Agreement for Performance Units for grants beginning Fiscal 2018 (filed as Exhibit 10.32 to the Company's Annual Report on Form 10-K filed with the SEC on May 17, 2017). +#
|
10.28 |
Form of Director Indemnification Agreement (filed as Exhibit 10.21 to the Company’s Annual Report on Form 10-K filed with the SEC on May 17, 2013). +@
|
|||||||
10.29 |
Form of Officer Indemnification Agreement (filed as Exhibit 10.22 to the Company’s Annual Report on Form 10-K filed with the SEC on May 17, 2013). +@
|
|||||||
10.30 |
Supply Agreement, dated as of July 1, 2012, among Medtech Products Inc. and Pharmacare Limited T/A Aspen Pharmacare (filed as Exhibit 10.26 to the Company’s Annual Report on Form 10-K filed with the SEC on May 17, 2013).+
|
|||||||
10.31 |
Supply Agreement, dated as of November 16, 2012, among Medtech Products Inc. and BestSweet Inc. (filed as Exhibit 10.27 to the Company’s Annual Report on Form 10-K filed with the SEC on May 17, 2013).+
|
|||||||
10.32 |
Amended and Restated Executive Severance Plan, adopted as of October 29, 2018 (filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q on November 1, 2018). +#
|
|||||||
10.33 |
Asset Purchase Agreement, dated July 2, 2018, by and among KIK International LLC, Prestige Brands International, Inc., The Spic and Span Company, Medtech Holdings, Inc. (as guarantor only) and Prestige Brands Holdings, Inc. (filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed with the SEC on August 2, 2018).+
|
|||||||
10.34 | ||||||||
21.1 | ||||||||
23.1 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 |
* |
Filed herewith.
|
||||
† | Certain confidential portions have been omitted. | ||||
+ |
Incorporated herein by reference.
|
||||
@ |
Represents a management contract.
|
||||
# |
Represents a compensatory plan.
|
Prestige Consumer Healthcare Inc. | ||||||||||||||
By: | /s/ Christine Sacco | |||||||||||||
Name: | Christine Sacco | |||||||||||||
Title: | Chief Financial Officer | |||||||||||||
Date: | May 8, 2020 |
Signature | Title | Date | ||||||||||||
/s/ RONALD M. LOMBARDI |
Director, President
and Chief Executive Officer |
May 8, 2020 | ||||||||||||
Ronald M. Lombardi | (Principal Executive Officer) | |||||||||||||
/s/ CHRISTINE SACCO | Chief Financial Officer | May 8, 2020 | ||||||||||||
Christine Sacco | (Principal Financial Officer and | |||||||||||||
Principal Accounting Officer) | ||||||||||||||
/s/ JOHN E. BYOM | Director | May 8, 2020 | ||||||||||||
John E. Byom | ||||||||||||||
/s/ GARY E. COSTLEY | Director | May 8, 2020 | ||||||||||||
Gary E. Costley | ||||||||||||||
/s/ SHEILA A. HOPKINS | Director | May 8, 2020 | ||||||||||||
Sheila A. Hopkins | ||||||||||||||
/s/ JAMES M. JENNESS | Director | May 8, 2020 | ||||||||||||
James M. Jenness | ||||||||||||||
/s/ NATALE S. RICCIARDI | Director | May 8, 2020 | ||||||||||||
Natale S. Ricciardi | ||||||||||||||
/s/ CHRISTOPHER J. COUGHLIN | Director | May 8, 2020 | ||||||||||||
Christopher J. Coughlin | ||||||||||||||
/s/ DAWN M. ZIER | Director | May 8, 2020 | ||||||||||||
Dawn M. Zier |
Name_________________________ | Jurisdiction of Incorporated/Organization |
Blacksmith Brands, Inc. | Delaware | ||||
C.B. Fleet TopCo, LLC | Delaware | ||||
C.B. Fleet HoldCo, LLC | Delaware | ||||
C.B. Fleet, LLC | Delaware | ||||
C.B. Fleet Company, Incorporated | Virginia | ||||
C.B. Fleet Investment Corporation | Delaware | ||||
C.B. Fleet, International, Inc. | Virginia | ||||
C.B. Fleet International(s) Pte. Ltd | Singapore | ||||
Care Acquisition Company Pty Limited | Australia | ||||
Care Pharmaceuticals Pty Limited | Australia | ||||
Cellegy Australia Pty | Australia | ||||
Clear Eyes Pharma Limited | England and Wales | ||||
DenTek Holdings, Inc. | Delaware | ||||
DenTek Oral Care, Inc. | Tennessee | ||||
DenTek Oral Care Limited | England and Wales | ||||
Insight Pharmaceuticals Corporation | Delaware | ||||
Insight Pharmaceuticals LLC | Delaware | ||||
Medtech Holdings, Inc. | Delaware | ||||
Medtech Online Inc. | Delaware | ||||
Medtech Personal Products Corporation | Delaware | ||||
Medtech Products Inc. | Delaware | ||||
PBH Australia Holdings Company Pty Limited | Australia | ||||
Peaks HBC Company, Inc. | Virginia | ||||
Practical Health Products, Inc | Delaware | ||||
Prestige Brands Holdings, Inc. | Virginia | ||||
Prestige Brands, Inc. | Delaware | ||||
Prestige Brands Gmbh | Germany | ||||
Prestige Brands International, Inc. | Virginia | ||||
Prestige Brands (UK) Limited | England and Wales | ||||
Prestige Services Corp. | Delaware | ||||
The Spic and Span Company | Delaware | ||||
Wartner USA B.V. | Netherlands |
1 | I have reviewed this Annual Report on Form 10-K of Prestige Consumer Healthcare 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: | May 8, 2020 | /s/ Ronald M. Lombardi | ||||||
Ronald M. Lombardi | ||||||||
Chief Executive Officer |
1 | I have reviewed this Annual Report on Form 10-K of Prestige Consumer Healthcare 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: | May 8, 2020 | /s/ Christine Sacco | ||||||
Christine Sacco | ||||||||
Chief Financial Officer |
/s/ Ronald M. Lombardi
|
|||||||||||||||||
Name: | Ronald M. Lombardi | ||||||||||||||||
Title: | Chief Executive Officer | ||||||||||||||||
Date: | May 8, 2020 |
/s/ Christine Sacco
|
|||||||||||||||||
Name: | Christine Sacco | ||||||||||||||||
Title:
|
Chief Financial Officer | ||||||||||||||||
Date: | May 8, 2020 |