Missouri | 1-15401 | 43-1863181 |
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employee Identification No.) |
Exhibit No. | Description |
99.1 | Press Release of Edgewell Personal Care Company issued on April 29, 2016. |
Exhibit No. | Description |
99.1 | Press Release of Edgewell Personal Care Company issued on April 29, 2016. |
Edgewell Personal Care Company 1350 Timberlake Manor Parkway St. Louis, MO 63017 | |
FOR IMMEDIATE RELEASE | Company Contact |
April 29, 2016 | Chris Gough Vice President, Investor Relations 203-944-5706 Chris.Gough@Edgewell.com |
• | Organic net sales decreased 0.7% in the quarter and 0.1% year-to-date. Excluding the impact of international go-to-market changes, sales would have increased by 1% and 1.9%, respectively. |
• | Adjusted EBITDA was $137.7 million for the quarter and $232.1 million year-to-date. |
• | GAAP Diluted Earnings Per Share ("EPS") was $1.10 for the quarter and $1.49 year-to-date. Adjusted EPS was $1.17 for the quarter and $1.85 year-to-date. |
• | The Company has updated its fiscal 2016 outlook, projecting relatively flat organic net sales, Adjusted EPS of $3.30-$3.50 and $440-$460 million in Adjusted EBITDA. |
• | The Company is subject to risks related to its international operations, such as global economic conditions, currency fluctuations and its changing international go-to-market strategy, that could adversely affect its results of operations; |
• | The Company may not achieve some or all of the expected benefits of the spin-off of its Household Products business, and this may materially adversely affect its business; |
• | The Company's manufacturing facilities, supply channels or other business operations may be subject to disruption from events beyond its control; |
• | The Company's access to capital markets and borrowing capacity could be limited; |
• | If the Company cannot continue to develop new products in a timely manner, and at favorable margins, it may not be able to compete effectively; |
• | The Company has a substantial level of indebtedness and is subject to various covenants relating to such indebtedness, which could limit its discretion to operate and grow its business; |
• | The Company faces risks arising from the restructuring of its operations and uncertainty with respect to its ability to achieve its estimated cost savings; |
• | Loss of any of the Company's principal customers and emergence of new sales channels could significantly decrease its sales and profitability; |
• | The Company may not be able to attract, retain and develop key personnel; |
• | The Company may experience losses or be subject to increased funding and expenses related to its pension plans; |
• | The Company may not be able to continue to identify and complete strategic acquisitions and effectively integrate acquired companies to achieve desired financial benefits; |
• | The Company's Wet Shave segment's men's shaving systems category has faced relatively flat to declining sales; |
• | The Company's business involves the potential for product liability and other claims against it, which could affect its results of operations and financial condition and result in product recalls or withdrawals; |
• | A failure of a key information technology system or a breach of the Company's information security could adversely impact its ability to conduct business; |
• | The resolution of the Company's tax contingencies may result in additional tax liabilities, which could adversely impact its cash flows and results of operations; |
• | If the Company fails to adequately protect its intellectual property rights, competitors may manufacture and market similar products, which could adversely affect its market share and results of operations; and |
• | Potential liabilities in connection with the Separation may arise under fraudulent conveyance and transfer laws and legal capital requirements. |
Quarter Ended March 31, | Six Months Ended March 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net sales | $ | 611.2 | $ | 651.1 | $ | 1,106.3 | $ | 1,188.2 | |||||||
Cost of products sold | 300.1 | 316.8 | 567.7 | 597.1 | |||||||||||
Gross profit | 311.1 | 334.3 | 538.6 | 591.1 | |||||||||||
Selling, general and administrative expense | 99.7 | 149.2 | 200.1 | 282.7 | |||||||||||
Advertising and sales promotion expense | 85.0 | 78.4 | 131.6 | 129.1 | |||||||||||
Research and development expense | 16.7 | 16.0 | 32.7 | 31.7 | |||||||||||
Venezuela deconsolidation charge | — | 79.3 | — | 79.3 | |||||||||||
Spin restructuring charges | — | 22.8 | — | 24.0 | |||||||||||
2013 restructuring charges | 5.0 | 6.6 | 23.5 | 15.8 | |||||||||||
Industrial sale charges | 0.2 | — | 0.2 | — | |||||||||||
Interest expense | 17.8 | 28.1 | 35.5 | 55.9 | |||||||||||
Other income, net | (4.6 | ) | (1.3 | ) | (7.0 | ) | (1.7 | ) | |||||||
Earnings (loss) from continuing operations before income taxes | 91.3 | (44.8 | ) | 122.0 | (25.7 | ) | |||||||||
Income tax provision | 25.2 | 9.8 | 32.2 | 9.0 | |||||||||||
Earnings (loss) from continuing operations | 66.1 | (54.6 | ) | 89.8 | (34.7 | ) | |||||||||
(Loss) earnings from discontinued operations, net of tax | — | (33.8 | ) | — | 51.4 | ||||||||||
Net earnings (loss) | $ | 66.1 | $ | (88.4 | ) | $ | 89.8 | $ | 16.7 | ||||||
Basic earnings (loss) per share: | |||||||||||||||
Continuing operations | $ | 1.11 | (0.88 | ) | $ | 1.51 | (0.56 | ) | |||||||
Discontinued operations | — | (0.54 | ) | — | 0.83 | ||||||||||
Net earnings (loss) | 1.11 | (1.42 | ) | 1.51 | 0.27 | ||||||||||
Diluted earnings (loss) per share: | |||||||||||||||
Continuing operations | $ | 1.10 | $ | (0.88 | ) | $ | 1.49 | $ | (0.56 | ) | |||||
Discontinued operations | — | (0.54 | ) | — | 0.82 | ||||||||||
Net earnings (loss) | 1.10 | (1.42 | ) | 1.49 | 0.27 | ||||||||||
Weighted-average shares outstanding: | |||||||||||||||
Basic | 59.4 | 62.2 | 59.6 | 62.1 | |||||||||||
Diluted | 59.9 | 62.2 | 60.1 | 62.5 |
Assets | March 31, 2016 | September 30, 2015 | |||||
Current assets | |||||||
Cash and cash equivalents | $ | 660.5 | $ | 712.1 | |||
Trade receivables, net | 291.5 | 279.8 | |||||
Inventories | 382.7 | 332.8 | |||||
Other current assets (1) | 180.8 | 311.9 | |||||
Total current assets | 1,515.5 | 1,636.6 | |||||
Property, plant and equipment, net | 482.0 | 476.1 | |||||
Goodwill | 1,423.9 | 1,421.8 | |||||
Other intangible assets, net | 1,401.6 | 1,408.5 | |||||
Other assets (1) | 126.4 | 48.7 | |||||
Total assets | $ | 4,949.4 | $ | 4,991.7 | |||
Liabilities and Shareholders' Equity | |||||||
Current liabilities | |||||||
Notes payable | $ | 17.0 | $ | 17.5 | |||
Accounts payable | 235.2 | 236.9 | |||||
Other current liabilities (1) | 349.2 | 412.4 | |||||
Total current liabilities | 601.4 | 666.8 | |||||
Long-term debt | 1,843.4 | 1,704.0 | |||||
Deferred income tax liabilities (1) | 344.6 | 335.8 | |||||
Other liabilities | 287.2 | 421.0 | |||||
Total liabilities | 3,076.6 | 3,127.6 | |||||
Shareholders' equity | |||||||
Common shares | 0.7 | 0.7 | |||||
Additional paid-in capital | 1,634.5 | 1,644.2 | |||||
Retained earnings | 862.7 | 772.9 | |||||
Treasury shares | (448.7 | ) | (382.2 | ) | |||
Accumulated other comprehensive loss | (176.4 | ) | (171.5 | ) | |||
Total shareholders' equity | 1,872.8 | 1,864.1 | |||||
Total liabilities and shareholders' equity | $ | 4,949.4 | $ | 4,991.7 |
(1) | The Company early adopted new accounting guidance during the first quarter of fiscal 2016 which required all deferred income tax assets and liabilities to be classified as non-current, resulting in a reclassification of $85.1 deferred income tax assets and $0.7 deferred income tax liabilities from current to non-current as of March 31, 2016. The adoption of the new guidance had no impact on the balance sheet as of September 30, 2015. |
Six Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Cash Flow from Operating Activities | |||||||
Net earnings | $ | 89.8 | $ | 16.7 | |||
Non-cash restructuring costs | 1.2 | 11.1 | |||||
Depreciation and amortization | 44.6 | 64.6 | |||||
Venezuela deconsolidation charge | — | 144.5 | |||||
Non-cash items included in income, net | 23.6 | 18.2 | |||||
International pension funding | (100.5 | ) | — | ||||
Other, net | (27.7 | ) | (14.4 | ) | |||
Changes in current assets and liabilities used in operations | (103.6 | ) | (160.9 | ) | |||
Net cash (used by) from operating activities | (72.6 | ) | 79.8 | ||||
Cash Flow from Investing Activities | |||||||
Capital expenditures | (34.5 | ) | (37.0 | ) | |||
Change related to Venezuelan operations | — | (93.8 | ) | ||||
Acquisitions, net of cash acquired | — | (11.1 | ) | ||||
Proceeds from sale of assets | — | 13.8 | |||||
Change in restricted cash | — | 13.9 | |||||
Net cash used by investing activities | (34.5 | ) | (114.2 | ) | |||
Cash Flow from Financing Activities | |||||||
Cash proceeds from debt with original maturities greater than 90 days | 395.3 | — | |||||
Cash payments on debt with original maturities greater than 90 days | (261.0 | ) | (80.2 | ) | |||
Net (decrease) increase in debt with original maturities of 90 days or less | (5.6 | ) | 224.1 | ||||
Common shares purchased | (78.9 | ) | — | ||||
Cash dividends paid | — | (62.1 | ) | ||||
Proceeds from issuance of common shares, net | — | 4.3 | |||||
Excess tax benefits from share-based payments | — | 9.2 | |||||
Net cash from financing activities | 49.8 | 95.3 | |||||
Effect of exchange rate changes on cash | 5.7 | (75.6 | ) | ||||
Net decrease in cash and cash equivalents | (51.6 | ) | (14.7 | ) | |||
Cash and cash equivalents, beginning of period | 712.1 | 1,129.0 | |||||
Cash and cash equivalents, end of period | $ | 660.5 | $ | 1,114.3 |
Quarter Ended March 31, | Six Months Ended March 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net Sales | |||||||||||||||
Wet Shave | $ | 353.4 | $ | 372.2 | $ | 669.7 | $ | 713.6 | |||||||
Sun and Skin Care | 132.5 | 130.2 | 186.0 | 184.5 | |||||||||||
Feminine Care | 91.6 | 101.6 | 184.1 | 197.4 | |||||||||||
All Other | 33.7 | 47.1 | 66.5 | 92.7 | |||||||||||
Total net sales | $ | 611.2 | $ | 651.1 | $ | 1,106.3 | $ | 1,188.2 | |||||||
Segment Profit | |||||||||||||||
Wet Shave | $ | 77.7 | $ | 99.8 | $ | 144.5 | $ | 190.3 | |||||||
Sun and Skin Care | 39.2 | 37.3 | 40.9 | 41.0 | |||||||||||
Feminine Care | 10.5 | 20.9 | 28.1 | 36.1 | |||||||||||
All Other | 8.0 | 7.1 | 15.2 | 13.9 | |||||||||||
Total segment profit | 135.4 | 165.1 | 228.7 | 281.3 | |||||||||||
General corporate and other expenses | (20.3 | ) | (38.6 | ) | (38.0 | ) | (70.0 | ) | |||||||
Venezuela deconsolidation charge | — | (79.3 | ) | — | (79.3 | ) | |||||||||
Spin costs (1) | (1.7 | ) | (32.2 | ) | (9.2 | ) | (56.0 | ) | |||||||
Spin restructuring charges | — | (22.8 | ) | — | (24.0 | ) | |||||||||
2013 restructuring and related costs (2) | (5.1 | ) | (6.6 | ) | (23.6 | ) | (15.8 | ) | |||||||
Industrial sale charges | (0.2 | ) | — | (0.2 | ) | — | |||||||||
Amortization of intangibles | (3.6 | ) | (3.6 | ) | (7.2 | ) | (7.7 | ) | |||||||
Interest and other expense, net | (13.2 | ) | (26.8 | ) | (28.5 | ) | (54.2 | ) | |||||||
Total earnings (loss) from continuing operations before income taxes | $ | 91.3 | $ | (44.8 | ) | $ | 122.0 | $ | (25.7 | ) |
(1) | Includes pre-tax SG&A of $1.7 and $31.5 for the second quarters of fiscal 2016 and 2015, respectively, and $9.0 and $55.3 for the first six months of fiscal 2016 and 2015, respectively, and pre-tax Cost of products sold of $0.7 for the second quarter of fiscal 2015 and $0.2 and $0.7 for the first six months of fiscal 2016 and 2015, respectively. |
(2) | Includes pre-tax Cost of products sold of $0.1 for the second quarter and first six months of fiscal 2016 associated with obsolescence charges related to the exit of certain non-core product lines as part of the restructuring. The non-core inventory obsolescence charges are considered part of the total project costs incurred for the restructuring project. There were no non-core inventory obsolescence charges during the second quarter and first six months of fiscal 2015. |
Quarter Ended March 31, | |||||||||||||||
Net Earnings | Diluted EPS | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net Earnings (Loss) from Continuing Operations and Diluted EPS - GAAP (Unaudited) | $ | 66.1 | $ | (54.6 | ) | $ | 1.10 | $ | (0.88 | ) | |||||
Impacts, net of tax: Expense | |||||||||||||||
Venezuela deconsolidation charge | — | 79.3 | — | 1.27 | |||||||||||
Spin costs (1) | 0.9 | 23.1 | 0.01 | 0.37 | |||||||||||
Spin restructuring charges | — | 16.1 | — | 0.26 | |||||||||||
2013 restructuring and related charges, net (2) | 3.4 | 5.0 | 0.06 | 0.08 | |||||||||||
Industrial sale charges | 0.1 | — | — | — | |||||||||||
Adjustment to prior years' tax accruals | — | 0.9 | — | 0.01 | |||||||||||
Impact of basic/dilutive shares (3) | — | — | — | 0.01 | |||||||||||
Adjusted Net Earnings and Adjusted Diluted EPS - Non-GAAP | $ | 70.5 | $ | 69.8 | $ | 1.17 | $ | 1.12 | |||||||
Weighted average shares - Diluted | 59.9 | 62.2 |
(1) | Includes SG&A of $0.9 and $22.6 (net of tax) for the second quarters of fiscal 2016 and 2015, respectively, and Cost of products sold of $0.5 (net of tax) for the second quarter of fiscal 2015. |
(2) | Includes Cost of products sold of $0.1 for the second quarter of fiscal 2016 associated with obsolescence charges related to the exit of certain non-core product lines as part of the restructuring. The non-core inventory obsolescence charges are considered part of the total project costs incurred for the restructuring project. There were no non-core inventory obsolescence charges during the second quarter of fiscal 2015. |
(3) | All EPS impacts are calculated using diluted weighted-average shares outstanding. For the second quarter of fiscal 2015, this reflects the impact of 0.9 dilutive RSE awards which were excluded from the GAAP EPS calculated due to the reported net loss. |
Six Months Ended March 31, | |||||||||||||||
Net Earnings | Diluted EPS | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net Earnings (Loss) from Continuing Operations and Diluted EPS - GAAP (Unaudited) | $ | 89.8 | $ | (34.7 | ) | $ | 1.49 | $ | (0.56 | ) | |||||
Impacts, net of tax: Expense (Income) | |||||||||||||||
Venezuela deconsolidation charge | — | 79.3 | — | 1.27 | |||||||||||
Spin costs (1) | 5.7 | 38.6 | 0.10 | 0.62 | |||||||||||
Spin restructuring charges | — | 17.0 | — | 0.27 | |||||||||||
2013 restructuring and related charges, net (2) | 15.9 | 9.9 | 0.26 | 0.16 | |||||||||||
Industrial sale charges | 0.1 | — | — | — | |||||||||||
Adjustment to prior years' tax accruals | — | (1.6 | ) | — | (0.02 | ) | |||||||||
Adjusted Net Earnings and Adjusted Diluted EPS - Non-GAAP | $ | 111.5 | $ | 108.5 | $ | 1.85 | $ | 1.74 | |||||||
Weighted average shares - Diluted | 60.1 | 62.5 |
(1) | Includes SG&A of $5.5 and $38.1 (net of tax) for the first six months of fiscal 2016 and 2015, respectively, and Cost of products sold of $0.2 and $0.5 (net of tax) for the first six months of fiscal 2016 and 2015, respectively. |
(2) | Includes Cost of products sold of $0.1 for the first six months of fiscal 2016 associated with obsolescence charges related to the exit of certain non-core product lines as part of the restructuring. The non-core inventory obsolescence charges are considered part of the total project costs incurred for the restructuring project. There were no non-core inventory obsolescence charges during the first six months of fiscal 2015. |
Quarter Ended March 31, 2016 | |||||||||||||||||||||||||||||||
Net Sales | Gross Profit | SG&A | A&P (1) | R&D (1) | EBIT (1) | Net Earnings | Diluted EPS | ||||||||||||||||||||||||
GAAP - Reported | $ | 611.2 | $ | 311.1 | $ | 99.7 | $ | 85.0 | $ | 16.7 | $ | 91.3 | $ | 66.1 | $ | 1.10 | |||||||||||||||
% of net sales | 50.9 | % | 16.3 | % | 13.9 | % | 2.7 | % | |||||||||||||||||||||||
Spin costs | — | — | 1.7 | — | — | 1.7 | 0.9 | 0.01 | |||||||||||||||||||||||
2013 restructuring and related charges, net (2) | — | 0.1 | — | — | — | 5.1 | 3.4 | 0.06 | |||||||||||||||||||||||
Industrial sale charges | — | — | — | — | — | 0.2 | 0.1 | — | |||||||||||||||||||||||
Total Adjusted Non-GAAP | $ | 611.2 | $ | 311.2 | $ | 98.0 | $ | 85.0 | $ | 16.7 | $ | 98.3 | $ | 70.5 | $ | 1.17 | |||||||||||||||
% of net sales | 50.9 | % | 16.0 | % | 13.9 | % | 2.7 | % |
Six Months Ended March 31, 2016 | |||||||||||||||||||||||||||||||
Net Sales | Gross Profit | SG&A | A&P (1) | R&D (1) | EBIT (1) | Net Earnings | Diluted EPS | ||||||||||||||||||||||||
GAAP - Reported | $ | 1,106.3 | $ | 538.6 | $ | 200.1 | $ | 131.6 | $ | 32.7 | $ | 122.0 | $ | 89.8 | $ | 1.49 | |||||||||||||||
% of net sales | 48.7 | % | 18.1 | % | 11.9 | % | 3.0 | % | |||||||||||||||||||||||
Spin costs | — | 0.2 | 9.0 | — | — | 9.2 | 5.7 | 0.10 | |||||||||||||||||||||||
2013 restructuring and related charges, net (2) | — | 0.1 | — | — | — | 23.6 | 15.9 | 0.26 | |||||||||||||||||||||||
Industrial sale charges | — | — | — | — | — | 0.2 | 0.1 | — | |||||||||||||||||||||||
Total Adjusted Non-GAAP | $ | 1,106.3 | $ | 538.9 | $ | 191.1 | $ | 131.6 | $ | 32.7 | $ | 155.0 | $ | 111.5 | $ | 1.85 | |||||||||||||||
% of net sales | 48.7 | % | 17.3 | % | 11.9 | % | 3.0 | % |
Quarter Ended March 31, 2015 | |||||||||||||||||||||||||||||||
Net Sales | Gross Profit | SG&A | A&P (1) | R&D (1) | EBIT (1) | Net Earnings (3) | Diluted EPS (4) | ||||||||||||||||||||||||
GAAP - Reported | $ | 651.1 | $ | 334.3 | $ | 149.2 | $ | 78.4 | $ | 16.0 | $ | (44.8 | ) | $ | (54.6 | ) | $ | (0.88 | ) | ||||||||||||
% of net sales | 51.3 | % | 22.9 | % | 12.0 | % | 2.5 | % | |||||||||||||||||||||||
Venezuela deconsolidation charge | — | — | — | — | — | 79.3 | 79.3 | 1.27 | |||||||||||||||||||||||
Spin costs | — | 0.7 | 31.5 | — | — | 32.2 | 23.1 | 0.37 | |||||||||||||||||||||||
Spin restructuring charges | — | — | — | — | — | 22.8 | 16.1 | 0.26 | |||||||||||||||||||||||
2013 restructuring and related charges, net (2) | — | — | — | — | — | 6.6 | 5.0 | 0.08 | |||||||||||||||||||||||
Adjustments to prior years' tax accruals | — | — | — | — | — | — | 0.9 | 0.01 | |||||||||||||||||||||||
Impact of basic/dilutive shares (4) | — | — | — | — | — | — | — | 0.01 | |||||||||||||||||||||||
Total Adjusted Non-GAAP | $ | 651.1 | $ | 335.0 | $ | 117.7 | $ | 78.4 | $ | 16.0 | $ | 96.1 | $ | 69.8 | $ | 1.12 | |||||||||||||||
% of net sales | 51.5 | % | 18.1 | % | 12.0 | % | 2.5 | % |
Six Months Ended March 31, 2015 | |||||||||||||||||||||||||||||||
Net Sales | Gross Profit | SG&A | A&P (1) | R&D (1) | EBIT (1) | Net Earnings (3) | Diluted EPS | ||||||||||||||||||||||||
GAAP - Reported | $ | 1,188.2 | $ | 591.1 | $ | 282.7 | $ | 129.1 | $ | 31.7 | $ | (25.7 | ) | $ | (34.7 | ) | $ | (0.56 | ) | ||||||||||||
% of net sales | 49.7 | % | 23.8 | % | 10.9 | % | 2.7 | % | |||||||||||||||||||||||
Venezuela deconsolidation charge | — | — | — | — | — | 79.3 | 79.3 | 1.27 | |||||||||||||||||||||||
Spin costs | — | 0.7 | 55.3 | — | — | 56.0 | 38.6 | 0.62 | |||||||||||||||||||||||
Spin restructuring charges | — | — | — | — | — | 24.0 | 17.0 | 0.27 | |||||||||||||||||||||||
2013 restructuring and related charges, net (2) | — | — | — | — | — | 15.8 | 9.9 | 0.16 | |||||||||||||||||||||||
Adjustments to prior years' tax accruals | — | — | — | — | — | — | (1.6 | ) | (0.02 | ) | |||||||||||||||||||||
Total Adjusted Non-GAAP | $ | 1,188.2 | $ | 591.8 | $ | 227.4 | $ | 129.1 | $ | 31.7 | $ | 149.4 | $ | 108.5 | $ | 1.74 | |||||||||||||||
% of net sales | 49.8 | % | 19.1 | % | 10.9 | % | 2.7 | % |
(1) | A&P is defined as Advertising and sales promotion expense, R&D is defined as Research and development expense and EBIT is defined as Earnings (loss) from continuing operations before income taxes. |
(2) | Includes Cost of products sold of $0.1 for the first six months of fiscal 2016 associated with obsolescence charges related to the exit of certain non-core product lines as part of the restructuring. The non-core inventory obsolescence charges are considered part of the total project costs incurred for the restructuring project. There were no non-core inventory obsolescence charges during the first six months of fiscal 2015. |
(3) | For the quarter and first six months of fiscal 2015, Net Earnings is defined as Earnings (loss) from continuing operations. |
(4) | All EPS impacts are calculated using diluted weighted-average shares outstanding. For the second quarter of fiscal 2015, this reflects the impact of 0.9 dilutive RSE awards which were excluded from the GAAP EPS calculated due to the reported net loss. |
Net Sales (In millions - Unaudited) | ||||||||||||||||||||||||||||||||||
Quarter Ended March 31, 2016 | ||||||||||||||||||||||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | All Other | Total | ||||||||||||||||||||||||||||||
Net Sales - FY '15 | $ | 372.2 | $ | 130.2 | $ | 101.6 | $ | 47.1 | $ | 651.1 | ||||||||||||||||||||||||
Organic | 1.5 | 0.4 | % | 4.9 | 3.8 | % | (9.3 | ) | (9.2 | )% | (1.6 | ) | (3.4 | )% | (4.5 | ) | (0.7 | )% | ||||||||||||||||
Impact of Venezuela | (14.4 | ) | (3.9 | )% | — | — | % | — | — | % | — | — | % | (14.4 | ) | (2.2 | )% | |||||||||||||||||
Impact of currency | (5.9 | ) | (1.6 | )% | (2.6 | ) | (2.0 | )% | (0.7 | ) | (0.7 | )% | (0.6 | ) | (1.3 | )% | (9.8 | ) | (1.5 | )% | ||||||||||||||
Impact of Industrial | — | — | % | — | — | % | — | — | % | (11.2 | ) | (23.8 | )% | (11.2 | ) | (1.7 | )% | |||||||||||||||||
Net Sales - FY '16 | $ | 353.4 | (5.1 | )% | $ | 132.5 | 1.8 | % | $ | 91.6 | (9.9 | )% | $ | 33.7 | (28.5 | )% | $ | 611.2 | (6.1 | )% |
Net Sales (In millions - Unaudited) | ||||||||||||||||||||||||||||||||||
Six Months Ended March 31, 2016 | ||||||||||||||||||||||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | All Other | Total | ||||||||||||||||||||||||||||||
Net Sales - FY '15 | $ | 713.6 | $ | 184.5 | $ | 197.4 | $ | 92.7 | $ | 1,188.2 | ||||||||||||||||||||||||
Organic | 5.2 | 0.7 | % | 7.3 | 4.0 | % | (11.5 | ) | (5.8 | )% | (2.7 | ) | (2.9 | )% | (1.7 | ) | (0.1 | )% | ||||||||||||||||
Impact of Venezuela | (24.0 | ) | (3.4 | )% | — | — | % | — | — | % | — | — | % | (24.0 | ) | (2.0 | )% | |||||||||||||||||
Impact of currency | (25.1 | ) | (3.5 | )% | (5.8 | ) | (3.1 | )% | (1.8 | ) | (0.9 | )% | (1.6 | ) | (1.7 | )% | (34.3 | ) | (2.9 | )% | ||||||||||||||
Impact of Industrial | — | — | % | — | — | % | — | — | % | (21.9 | ) | (23.6 | )% | (21.9 | ) | (1.8 | )% | |||||||||||||||||
Net Sales - FY '16 | $ | 669.7 | (6.2 | )% | $ | 186.0 | 0.9 | % | $ | 184.1 | (6.7 | )% | $ | 66.5 | (28.2 | )% | $ | 1,106.3 | (6.8 | )% |
Segment Profit (In millions - Unaudited) | ||||||||||||||||||||||||||||||||||
Quarter Ended March 31, 2016 | ||||||||||||||||||||||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | All Other | Total | ||||||||||||||||||||||||||||||
Segment Profit - FY '15 | $ | 99.8 | $ | 37.3 | $ | 20.9 | $ | 7.1 | $ | 165.1 | ||||||||||||||||||||||||
Organic | (13.2 | ) | (13.2 | )% | 2.8 | 7.5 | % | (9.5 | ) | (45.5 | )% | 1.7 | 23.9 | % | (18.2 | ) | (11.0 | )% | ||||||||||||||||
Impact of Venezuela | (6.1 | ) | (6.1 | )% | — | — | % | — | — | % | — | — | % | (6.1 | ) | (3.7 | )% | |||||||||||||||||
Impact of currency | (2.8 | ) | (2.8 | )% | (0.9 | ) | (2.4 | )% | (0.9 | ) | (4.3 | )% | (0.4 | ) | (5.6 | )% | (5.0 | ) | (3.0 | )% | ||||||||||||||
Impact of Industrial | — | — | % | — | — | % | — | — | % | (0.4 | ) | (5.6 | )% | (0.4 | ) | (0.2 | )% | |||||||||||||||||
Segment Profit - FY'16 | $ | 77.7 | (22.1 | )% | $ | 39.2 | 5.1 | % | $ | 10.5 | (49.8 | )% | $ | 8.0 | 12.7 | % | $ | 135.4 | (17.9 | )% |
Segment Profit (In millions - Unaudited) | ||||||||||||||||||||||||||||||||||
Six Months Ended March 31, 2016 | ||||||||||||||||||||||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | All Other | Total | ||||||||||||||||||||||||||||||
Segment Profit - FY '15 | $ | 190.3 | $ | 41.0 | $ | 36.1 | $ | 13.9 | $ | 281.3 | ||||||||||||||||||||||||
Organic | (25.9 | ) | (13.6 | )% | 1.7 | 4.1 | % | (6.4 | ) | (17.7 | )% | 3.6 | 25.9 | % | (27.0 | ) | (9.6 | )% | ||||||||||||||||
Impact of Venezuela | (9.4 | ) | (4.9 | )% | — | — | % | — | — | % | — | — | % | (9.4 | ) | (3.3 | )% | |||||||||||||||||
Impact of currency | (10.5 | ) | (5.5 | )% | (1.8 | ) | (4.4 | )% | (1.6 | ) | (4.4 | )% | (1.1 | ) | (7.9 | )% | (15.0 | ) | (5.3 | )% | ||||||||||||||
Impact of Industrial | — | — | % | — | — | % | — | — | % | (1.2 | ) | (8.6 | )% | (1.2 | ) | (0.4 | )% | |||||||||||||||||
Segment Profit - FY'16 | $ | 144.5 | (24.0 | )% | $ | 40.9 | (0.3 | )% | $ | 28.1 | (22.1 | )% | $ | 15.2 | 9.4 | % | $ | 228.7 | (18.6 | )% |
Quarter Ended March 31, | Six Months Ended March 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Earnings from continuing operations before income taxes - GAAP | $ | 91.3 | $ | (44.8 | ) | $ | 122.0 | $ | (25.7 | ) | |||||
Interest expense, net (1) | 14.8 | 28.1 | 32.5 | 55.9 | |||||||||||
Depreciation and amortization | 25.1 | 23.0 | 45.8 | 48.2 | |||||||||||
EBITDA (2) | $ | 131.2 | $ | 6.3 | $ | 200.3 | $ | 78.4 | |||||||
Venezuela deconsolidation charge | — | 79.3 | — | 79.3 | |||||||||||
Spin restructuring charges | — | 22.8 | — | 24.0 | |||||||||||
Spin costs | 1.7 | 32.2 | 9.2 | 56.0 | |||||||||||
2013 restructuring and related costs (3) | 4.6 | 5.0 | 22.4 | 12.8 | |||||||||||
Industrial sale charges | 0.2 | — | 0.2 | — | |||||||||||
Adjusted EBITDA (2) | $ | 137.7 | $ | 145.6 | $ | 232.1 | $ | 250.5 | |||||||
SG&A (4) | — | 16.4 | — | 28.9 | |||||||||||
Normalized EBITDA | $ | 137.7 | $ | 162.0 | $ | 232.1 | $ | 279.4 |
(1) | Interest expense, net for the second quarter and first six months of fiscal 2016 includes $2.6 of income recorded in relation to settlements with tax authorities. |
(2) | Historical adjusted EBITDA results on a continuing operations basis include costs associated with supporting the Household Product business that are not eligible to be reported in discontinued operations which affect corporate SG&A. As such, both EBITDA and adjusted EBITDA this quarter and this fiscal year are not comparable to the prior year, and will not be comparable year-over-year as we move through each of the first three quarters of fiscal 2016. |
(3) | Excludes $0.5 and $1.6 of accelerated depreciation for the second fiscal quarters of 2016 and 2015, respectively, and $1.2 and $3.0 of accelerated depreciation for the first six months of 2016 and 2015, respectively, which are included within Depreciation and amortization. |
(4) | Corporate SG&A has been adjusted to reflect an estimated full year run-rate of $74 in fiscal 2015. |
Q2 2016 | Days | Q1 2016 | Days | Q4 2015 | Days | |||||||||||||||
Average receivables, adjusted (1) (2) | $ | 241.8 | 37.7 | $ | 245.2 | 37.6 | $ | 246.7 | 37.2 | |||||||||||
Average inventories (1) | 355.5 | 107.7 | 356.2 | 106.5 | 362.0 | 107.1 | ||||||||||||||
Average accounts payable (1) | 212.4 | 64.4 | 197.1 | 58.9 | 185.4 | 54.8 | ||||||||||||||
Average working capital (3) | $ | 384.9 | $ | 404.3 | $ | 423.4 | ||||||||||||||
% of net sales (4) | 16.5 | % | 17.0 | % | 17.5 | % |
(1) | Excludes amounts identified as corporate. |
(2) | Adjusted for trade allowances recorded as a reduction of net sales per GAAP and reported in accrued expenses on the Condensed Consolidated Balance Sheets. |
(3) | Working capital is defined as receivables (less trade allowance in accrued liabilities), plus inventories, less accounts payable. Average working capital is calculated using an average of the four-quarter end balances for each working capital component as of March 31, 2016, December 31, 2015 and September 30, 2015, respectively. |
(4) | Average working capital divided by trailing four quarter net sales. |
Q1 2015 | Q2 2015 | Q3 2015 | Q4 2015 | Fiscal Year 2015 | |||||||||||||||
Net Sales | |||||||||||||||||||
Wet Shave | $ | 341.4 | $ | 372.2 | $ | 369.3 | $ | 358.4 | $ | 1,441.3 | |||||||||
Sun and Skin Care | 54.3 | 130.2 | 153.3 | 65.8 | 403.6 | ||||||||||||||
Feminine Care | 95.8 | 101.6 | 104.1 | 96.7 | 398.2 | ||||||||||||||
All Other | 45.6 | 47.1 | 46.2 | 39.2 | 178.1 | ||||||||||||||
Total net sales | $ | 537.1 | $ | 651.1 | $ | 672.9 | $ | 560.1 | $ | 2,421.2 | |||||||||
Segment Profit | |||||||||||||||||||
Wet Shave | $ | 90.5 | $ | 99.8 | $ | 56.4 | $ | 62.0 | $ | 308.7 | |||||||||
Sun and Skin Care | 3.7 | 37.3 | 25.8 | 4.7 | 71.5 | ||||||||||||||
Feminine Care | 15.2 | 20.9 | 7.9 | 4.7 | 48.7 | ||||||||||||||
All Other | 6.8 | 7.1 | 5.2 | 5.5 | 24.6 | ||||||||||||||
Total segment profit | 116.2 | 165.1 | 95.3 | 76.9 | 453.5 | ||||||||||||||
General corporate and other expenses | (31.4 | ) | (38.6 | ) | (36.6 | ) | (15.4 | ) | (122.0 | ) | |||||||||
Impairment charge | — | — | — | (318.2 | ) | (318.2 | ) | ||||||||||||
Venezuela deconsolidation charge | — | (79.3 | ) | — | — | (79.3 | ) | ||||||||||||
Spin costs (1) | (23.8 | ) | (32.2 | ) | (55.7 | ) | (30.3 | ) | (142.0 | ) | |||||||||
Spin restructuring charges | (1.2 | ) | (22.8 | ) | (4.3 | ) | — | (28.3 | ) | ||||||||||
2013 restructuring and related costs (2) | (9.2 | ) | (6.6 | ) | (4.9 | ) | (6.3 | ) | (27.0 | ) | |||||||||
Industrial sale charges | — | — | (21.9 | ) | (10.8 | ) | (32.7 | ) | |||||||||||
Amortization of intangibles | (4.1 | ) | (3.6 | ) | (3.8 | ) | (3.6 | ) | (15.1 | ) | |||||||||
Cost of early debt retirements | — | — | (59.6 | ) | — | (59.6 | ) | ||||||||||||
Interest and other expense, net | (27.4 | ) | (26.8 | ) | (20.9 | ) | (12.9 | ) | (88.0 | ) | |||||||||
Total earnings (loss) from continuing operations before income taxes | $ | 19.1 | $ | (44.8 | ) | $ | (112.4 | ) | $ | (320.6 | ) | $ | (458.7 | ) |
(1) | Includes pre-tax costs of $23.8, $31.5, $52.4, $30.1 and $137.8, respectively, for the first, second, third and fourth quarter of fiscal 2015 and fiscal year 2015, which were included in SG&A, and pre-tax costs of $0.7, $3.3, $0.2 and $4.2, respectively, for the second, third and fourth quarters of fiscal 2015 and fiscal year 2015, included in Cost of products sold. |
(2) | Includes pre-tax costs of $0.3 for the third quarter of fiscal 2015 and fiscal year 2015 associated with certain information technology and related activities, which were included in SG&A. |
Q1 | Q2 | Q3 | Q4 | FY | ||
Wet Shave - Net Sales | Fiscal 2015 | $9.6 | $14.4 | — | — | $24.0 |
Q1 | Q2 | Q3 | Q4 | FY | ||
Wet Shave - Segment Profit | Fiscal 2015 | $3.3 | $6.0 | — | — | $9.3 |
Q1 | Q2 | Q3 | Q4 | FY | ||
Industrial - Net Sales | Fiscal 2015 | $10.7 | $11.2 | $12.4 | $7.6 | $41.9 |