Missouri | 1-15401 | 43-1863181 |
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) |
Emerging growth company | o |
Exhibit No. | Description |
99.1 |
Exhibit No. | Description |
99.1 |
![]() | Edgewell Personal Care Company 6 Research Drive Shelton, Conn 06484 |
FOR IMMEDIATE RELEASE | Company Contact |
Chris Gough Vice President, Investor Relations 203-944-5706 Chris.Gough@Edgewell.com |
• | Net sales were $620.6 million in the third quarter of fiscal 2018, a decrease of 2.7% when compared to the prior year period on a GAAP basis, and down 4.9% on an organic basis. (Organic basis excludes sales impact from the Jack Black acquisition, the Playtex gloves divestiture, and the translational benefit from currency.) |
• | GAAP Diluted Earnings Per Share ("EPS") were $0.22 for the third quarter, including a $0.43 after tax impact from the non-cash goodwill impairment charge in the Infant Care business, as compared to $0.95 in the prior year quarter. Adjusted EPS were $0.91 for the third quarter, compared to $1.11 in the prior year quarter. |
• | Delivered $193 million in cash from operating activities through the first nine months of fiscal 2018, as compared to $135 million in the prior year. |
• | Finalized program details for "Project Fuel" with large scale implementation expected to begin in August 2018. Project Fuel is expected to deliver $225 million in annual gross cost savings by the end of the 2021 fiscal year. |
• | Updated financial outlook for fiscal 2018. |
• | The Company analyzes its net revenue on an organic basis to better measure the comparability of results between periods. Organic net sales exclude the impact of changes in foreign currency, acquisitions and dispositions. This information is provided because these fluctuations can distort the underlying change in net sales either positively or negatively. For the three and nine months ended June 30, 2018, the impact of acquisitions includes net sales and segment profit activity for Jack Black, which was acquired in March 2018. For the nine months ended June 30, 2018, the impact of acquisitions includes October 2018 net sales and segment profit for Bulldog Skincare Holdings Limited (“Bulldog”) which was acquired in October 2016. |
• | Adjusted EBITDA is defined as earnings before income taxes, interest expense, net, depreciation and amortization and excludes items such as impairment charges, Jack Black acquisition and integration costs, restructuring charges and the sale of the Playtex gloves business. |
• | Adjusted operating income is defined as earnings before income taxes, interest expense associated with debt, other income, net, and excludes items such as impairment charges, Jack Black acquisition and integration costs, restructuring charges and the sale of the Playtex gloves business. |
• | Adjusted net earnings and adjusted earnings per share are defined as net earnings and diluted earnings per share excluding items such as impairment charges, Jack Black acquisition and integration costs, restructuring charges, the sale of the |
• | Adjusted effective tax rate is defined as the effective tax rate excluding items such as impairment charges, Jack Black acquisition and integration costs, restructuring charges, the sale of the Playtex gloves business, the related tax effects of these items, and the impact of the transition tax and re-measurement of deferred tax assets and liabilities related to the Tax Act from the income tax provision and earnings before income taxes. |
• | Adjusted working capital is defined as receivables, less trade allowances in accrued liabilities, plus inventories, less accounts payable, and is calculated using an average of the trailing four-quarter end balances. |
• | Free cash flow is defined as net cash from operating activities less net capital expenditures. Free cash flow conversion is defined as free cash flow as a percentage of adjusted net earnings. |
• | We face risks associated with global economic conditions. |
• | Competition in our industries may hinder our ability to execute our business strategy, achieve profitability, or maintain relationships with existing customers. |
• | Loss of any of our principal customers could significantly decrease our sales and profitability. |
• | Our inability to execute a successful e-commerce strategy could have a significant impact on our business |
• | Changes in production costs, including raw material prices, could erode our profit margins and negatively impact operating results. |
• | Loss of reputation of our leading brands or failure of our marketing plans could have an adverse effect on our business. |
• | We are subject to risks related to our international operations, including currency fluctuations, which could adversely affect our results of operations. |
• | We face risks arising from our ongoing efforts to achieve cost savings. |
• | If we cannot continue to develop new products in a timely manner, and at favorable margins, we may not be able to compete effectively. |
• | We may not be able to continue to identify and complete strategic acquisitions and effectively integrate acquired companies to achieve desired financial benefits. |
• | A failure of a key information technology system or a breach of our information security could adversely impact our ability to conduct business. |
• | Our business is subject to increasing global regulation, including product related regulations and environmental regulations, that may expose us to significant liabilities. |
• | Our access to capital markets and borrowing capacity could be limited. |
• | Impairment of our goodwill and other intangible assets would result in a reduction in net income. |
• | Legislative changes in applicable tax laws, policies and regulations or unfavorable resolution of tax matters may result in additional tax liabilities, which could adversely impact our cash flows and results of operations. |
• | Our manufacturing facilities, supply channels or other business operations may be subject to disruption from events beyond our control. |
• | We have a substantial level of indebtedness and are subject to various covenants relating to such indebtedness, which could limit our discretion to operate and grow our business. |
• | Our business is subject to seasonal volatility. |
• | There can be no guarantee that we will repurchase stock. |
• | We do not expect to pay dividends for the foreseeable future. |
• | If we fail to adequately protect our intellectual property rights, competitors may manufacture and market similar products, which could adversely affect our market share and results of operations. |
• | Our financial results could be adversely impacted by the United Kingdom's departure from the European Union. |
• | Our business involves the potential for product liability and other claims against us, which could affect our results of operations and financial condition and result in product recalls or withdrawals. |
• | Our business could be negatively impacted as a result of stockholder activism or an unsolicited takeover proposal or a proxy contest. |
• | We may not be able to attract, retain and develop key personnel. |
• | We may experience losses or be subject to increased funding and expenses related to our pension plans. |
• | Certain provisions in our articles of incorporation and bylaws, and of Missouri law, could deter or delay a third-party's effort to acquire us, especially if the Board determines it is not in the best interest of our shareholders. |
• | The trading price of our common shares may be volatile. |
• | If the Separation of our household products business on July 1, 2015 (the "Separation"), together with certain related transactions, does not qualify as a transaction that is generally tax free for U.S. federal income tax purposes, our shareholders could be subject to significant tax liabilities. |
• | Indemnifications under the Separation agreement with Energizer Holdings, Inc. or Energizer’s inability to satisfy indemnification obligations in the future could negatively impact our financial results. |
Quarter Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net sales | $ | 620.6 | $ | 637.5 | $ | 1,697.0 | $ | 1,733.5 | |||||||
Cost of products sold | 317.9 | 315.4 | 891.9 | 873.8 | |||||||||||
Gross profit | 302.7 | 322.1 | 805.1 | 859.7 | |||||||||||
Selling, general and administrative expense | 100.7 | 97.5 | 301.4 | 295.2 | |||||||||||
Advertising and sales promotion expense | 105.3 | 114.2 | 229.9 | 247.3 | |||||||||||
Research and development expense | 14.9 | 16.4 | 46.5 | 50.2 | |||||||||||
Impairment charges | 24.4 | — | 24.4 | — | |||||||||||
Restructuring charges | 15.4 | 12.5 | 19.1 | 24.9 | |||||||||||
Sale of Playtex gloves | 0.6 | — | (15.3 | ) | — | ||||||||||
Interest expense associated with debt | 16.5 | 17.6 | 52.5 | 52.3 | |||||||||||
Other expense (income), net | 3.5 | (1.6 | ) | 6.3 | (10.1 | ) | |||||||||
Earnings before income taxes | 21.4 | 65.5 | 140.3 | 199.9 | |||||||||||
Income tax provision | 9.3 | 10.6 | 56.4 | 45.8 | |||||||||||
Net earnings | $ | 12.1 | $ | 54.9 | $ | 83.9 | $ | 154.1 | |||||||
Earnings per share: | |||||||||||||||
Basic net earnings per share | $ | 0.23 | $ | 0.96 | $ | 1.54 | $ | 2.68 | |||||||
Diluted net earnings per diluted share | 0.22 | 0.95 | 1.54 | 2.67 | |||||||||||
Weighted-average shares outstanding: | |||||||||||||||
Basic | 54.0 | 57.2 | 54.5 | 57.4 | |||||||||||
Diluted | 54.1 | 57.5 | 54.6 | 57.7 |
Assets | June 30, 2018 | September 30, 2017 | |||||
Current assets | |||||||
Cash and cash equivalents | $ | 218.5 | $ | 502.9 | |||
Trade receivables, less allowance for doubtful accounts | 225.6 | 224.1 | |||||
Inventories | 341.4 | 333.5 | |||||
Other current assets | 135.3 | 125.7 | |||||
Total current assets | 920.8 | 1,186.2 | |||||
Property, plant and equipment, net | 427.5 | 453.4 | |||||
Goodwill | 1,450.7 | 1,445.9 | |||||
Other intangible assets, net | 1,104.2 | 1,071.7 | |||||
Other assets | 33.4 | 31.6 | |||||
Total assets | $ | 3,936.6 | $ | 4,188.8 | |||
Liabilities and Shareholders' Equity | |||||||
Current liabilities | |||||||
Current maturities of long-term debt | 184.9 | — | |||||
Notes payable | 20.9 | 19.4 | |||||
Accounts payable | 233.9 | 223.6 | |||||
Other current liabilities | 297.0 | 281.4 | |||||
Total current liabilities | 736.7 | 524.4 | |||||
Long-term debt | 1,096.5 | 1,525.4 | |||||
Deferred income tax liabilities | 151.0 | 181.8 | |||||
Other liabilities | 234.5 | 215.5 | |||||
Total liabilities | 2,218.7 | 2,447.1 | |||||
Shareholders' equity | |||||||
Preferred shares | — | — | |||||
Common shares | 0.7 | 0.7 | |||||
Additional paid-in capital | 1,629.4 | 1,623.4 | |||||
Retained earnings | 1,046.5 | 952.9 | |||||
Common shares in treasury at cost | (822.4 | ) | (703.9 | ) | |||
Accumulated other comprehensive loss | (136.3 | ) | (131.4 | ) | |||
Total shareholders' equity | 1,717.9 | 1,741.7 | |||||
Total liabilities and shareholders' equity | $ | 3,936.6 | $ | 4,188.8 |
Nine Months Ended June 30, | |||||||
2018 | 2017 | ||||||
Cash Flow from Operating Activities | |||||||
Net earnings | $ | 83.9 | $ | 154.1 | |||
Non-cash restructuring costs | — | 6.4 | |||||
Impairment charge | 24.4 | — | |||||
Depreciation and amortization | 73.4 | 70.3 | |||||
Share-based compensation expense | 14.0 | 16.6 | |||||
(Gain) / loss on sale of assets | (13.0 | ) | 3.9 | ||||
Deferred compensation payments | (15.4 | ) | (27.6 | ) | |||
Deferred income taxes | (22.9 | ) | (3.0 | ) | |||
Other, net | (4.1 | ) | (13.1 | ) | |||
Changes in operating assets and liabilities | 53.0 | (72.6 | ) | ||||
Net cash from operating activities | 193.3 | 135.0 | |||||
Cash Flow from Investing Activities | |||||||
Capital expenditures | (41.8 | ) | (45.4 | ) | |||
Acquisitions, net of cash acquired | (90.2 | ) | (34.0 | ) | |||
Playtex gloves sale | 19.0 | — | |||||
Proceeds from sale of assets | 4.7 | 5.9 | |||||
Net cash used by investing activities | (108.3 | ) | (73.5 | ) | |||
Cash Flow from Financing Activities | |||||||
Cash proceeds from debt with original maturities greater than 90 days | 477.0 | 181.0 | |||||
Cash payments on debt with original maturities greater than 90 days | (722.0 | ) | (423.0 | ) | |||
Net (decrease) increase in debt with original maturities of 90 days or less | 0.2 | 0.1 | |||||
Common shares purchased | (124.4 | ) | (94.6 | ) | |||
Employee shares withheld for taxes | (2.2 | ) | (15.6 | ) | |||
Excess tax benefits from share-based payments | — | 1.9 | |||||
Net cash used by financing activities | (371.4 | ) | (350.2 | ) | |||
Effect of exchange rate changes on cash | 2.0 | 4.7 | |||||
Net decrease in cash and cash equivalents | (284.4 | ) | (284.0 | ) | |||
Cash and cash equivalents, beginning of period | 502.9 | 738.9 | |||||
Cash and cash equivalents, end of period | $ | 218.5 | $ | 454.9 |
Quarter Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net Sales | |||||||||||||||
Wet Shave | $ | 341.1 | $ | 358.5 | $ | 980.4 | $ | 1,007.3 | |||||||
Sun and Skin Care | 162.8 | 161.1 | 374.2 | 369.3 | |||||||||||
Feminine Care | 84.1 | 86.4 | 247.0 | 258.7 | |||||||||||
All Other | 32.6 | 31.5 | 95.4 | 98.2 | |||||||||||
Total net sales | $ | 620.6 | $ | 637.5 | $ | 1,697.0 | $ | 1,733.5 | |||||||
Segment Profit | |||||||||||||||
Wet Shave | $ | 56.0 | $ | 59.8 | $ | 180.5 | $ | 205.0 | |||||||
Sun and Skin Care | 34.1 | 42.4 | 76.9 | 94.1 | |||||||||||
Feminine Care | 11.1 | 7.6 | 26.2 | 17.5 | |||||||||||
All Other | 5.5 | 6.7 | 17.0 | 21.3 | |||||||||||
Total segment profit | 106.7 | 116.5 | 300.6 | 337.9 | |||||||||||
General corporate and other expenses | (17.5 | ) | (18.2 | ) | (54.7 | ) | (58.1 | ) | |||||||
Impairment charges | (24.4 | ) | — | (24.4 | ) | — | |||||||||
Restructuring and related charges (1) | (15.9 | ) | (12.8 | ) | (19.6 | ) | (25.6 | ) | |||||||
Jack Black acquisition and integration costs | (2.3 | ) | — | (4.9 | ) | — | |||||||||
Sale of Playtex gloves | (0.6 | ) | — | 15.3 | — | ||||||||||
Amortization of intangibles | (4.6 | ) | (4.0 | ) | (13.2 | ) | (12.1 | ) | |||||||
Interest and other expense, net | (20.0 | ) | (16.0 | ) | (58.8 | ) | (42.2 | ) | |||||||
Total earnings before income taxes | $ | 21.4 | $ | 65.5 | $ | 140.3 | $ | 199.9 |
(1) | Includes pre-tax Selling, general and administrative expense of $0.5 for the three and nine months ended June 30, 2018, associated with certain information technology enablement expenses for Project Fuel. Includes Cost of products sold of $0.3 and $0.7 for the third quarter and first nine months of fiscal 2017, respectively, associated with obsolescence charges related to the exit of certain non-core product lines as a part of the 2013 restructuring. |
Quarter Ended June 30, | |||||||||||||||
Net Earnings | Diluted EPS | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net Earnings and Diluted EPS - GAAP (Unaudited) | $ | 12.1 | $ | 54.9 | 0.22 | 0.95 | |||||||||
Impairment charges | 24.4 | — | 0.45 | — | |||||||||||
Restructuring and related charges (1) | 15.9 | 12.8 | 0.29 | 0.23 | |||||||||||
Jack Black acquisition and integration costs | 2.3 | — | 0.05 | — | |||||||||||
Sale of Playtex gloves | 0.6 | — | 0.01 | — | |||||||||||
Income taxes | (6.1 | ) | (4.0 | ) | (0.11 | ) | (0.07 | ) | |||||||
Adjusted Net Earnings and Adjusted Diluted EPS - Non-GAAP | $ | 49.2 | $ | 63.7 | $ | 0.91 | $ | 1.11 | |||||||
Weighted-average shares outstanding - Diluted | 54.1 | 57.5 |
(1) | Includes pre-tax Selling, general and administrative expense of $0.5 for the third quarter of fiscal 2018 with certain information technology enablement expenses for Project Fuel. Includes Cost of products sold of $0.3 for the third quarter of fiscal 2017 associated with obsolescence charges related to the exit of certain non-core product lines as part of the 2013 restructuring. |
Nine Months Ended June 30, | |||||||||||||||
Net Earnings | Diluted EPS | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net Earnings and Diluted EPS - GAAP (Unaudited) | $ | 83.9 | $ | 154.1 | 1.54 | 2.67 | |||||||||
Impairment charges | 24.4 | — | 0.45 | — | |||||||||||
Restructuring and related charges (1) | 19.6 | 25.6 | 0.36 | 0.45 | |||||||||||
Jack Black acquisition and integration costs | 4.9 | — | 0.09 | — | |||||||||||
Sale of Playtex gloves | (15.3 | ) | — | (0.28 | ) | — | |||||||||
Income taxes(2) | 13.9 | (8.0 | ) | 0.25 | (0.14 | ) | |||||||||
Adjusted Net Earnings and Adjusted Diluted EPS - Non-GAAP | $ | 131.4 | $ | 171.7 | $ | 2.41 | $ | 2.98 | |||||||
Weighted-average shares outstanding - Diluted | 54.6 | 57.7 |
(1) | Includes pre-tax Selling, general and administrative expense of $0.5 for the first nine months of fiscal 2018 with certain information technology enablement expenses for Project Fuel. Includes Cost of products sold of $0.7 for the first nine months of fiscal 2017 associated with obsolescence charges related to the exit of certain non-core product lines as part of the 2013 restructuring. |
(2) | Includes the impact of the Tax Act totaling $17.4 in Income tax expense for the first nine months of fiscal 2018 in addition to the tax impact of the other adjustments to Net Earnings and Diluted EPS - GAAP. |
Quarter Ended June 30, 2018 | |||||||||||||||||||
Gross Profit | SG&A | EBIT (1) | Net Earnings | Diluted EPS | |||||||||||||||
GAAP - Reported | 302.7 | 100.7 | 21.4 | $ | 12.1 | 0.22 | |||||||||||||
% of net sales | 48.8 | % | 16.2 | % | |||||||||||||||
Impairment charges | — | — | 24.4 | 23.3 | 0.43 | ||||||||||||||
Restructuring and related charges (2) | — | 0.5 | 15.9 | 11.6 | 0.22 | ||||||||||||||
Jack Black acquisition and integration costs | 1.8 | 0.5 | 2.3 | 1.7 | 0.03 | ||||||||||||||
Sale of Playtex gloves | — | — | 0.6 | 0.5 | 0.01 | ||||||||||||||
Total Adjusted Non-GAAP | $ | 304.5 | $ | 99.7 | $ | 64.6 | $ | 49.2 | $ | 0.91 | |||||||||
% of net sales | 49.1 | % | 16.1 | % |
Nine Months Ended June 30, 2018 | |||||||||||||||||||
Gross Profit | SG&A | EBIT (1) | Net Earnings | Diluted EPS | |||||||||||||||
GAAP - Reported | 805.1 | 301.4 | 140.3 | $ | 83.9 | 1.54 | |||||||||||||
% of net sales | 47.4 | % | 17.8 | % | |||||||||||||||
Impairment charges | — | — | 24.4 | 23.3 | 0.43 | ||||||||||||||
Restructuring and related charges (2) | — | 0.5 | 19.6 | 14.3 | 0.26 | ||||||||||||||
Jack Black acquisition and integration costs | 1.8 | 3.1 | 4.9 | 3.6 | 0.06 | ||||||||||||||
Sale of Playtex gloves | — | — | (15.3 | ) | (11.1 | ) | (0.20 | ) | |||||||||||
Income tax reform | — | — | — | 17.4 | 0.32 | ||||||||||||||
Total Adjusted Non-GAAP | $ | 806.9 | $ | 297.8 | $ | 173.9 | $ | 131.4 | $ | 2.41 | |||||||||
% of net sales | 47.5 | % | 17.5 | % |
Quarter Ended June 30, 2017 | |||||||||||||||||||
Gross Profit | SG&A | EBIT (1) | Net Earnings | Diluted EPS | |||||||||||||||
GAAP - Reported | 322.1 | 97.5 | 65.5 | $ | 54.9 | 0.95 | |||||||||||||
% of net sales | 50.5 | % | 15.3 | % | |||||||||||||||
Restructuring and related charges (2) | 0.3 | — | 12.8 | 8.8 | 0.16 | ||||||||||||||
Total Adjusted Non-GAAP | $ | 322.4 | $ | 97.5 | $ | 78.3 | $ | 63.7 | $ | 1.11 | |||||||||
% of net sales | 50.6 | % | 15.3 | % |
Nine Months Ended June 30, 2017 | |||||||||||||||||||
Gross Profit | SG&A | EBIT (1) | Net Earnings | Diluted EPS | |||||||||||||||
GAAP - Reported | 859.7 | 295.2 | 199.9 | $ | 154.1 | 2.67 | |||||||||||||
% of net sales | 49.6 | % | 17.0 | % | |||||||||||||||
Restructuring and related charges (2) | 0.7 | — | 25.6 | 17.6 | 0.31 | ||||||||||||||
Total Adjusted Non-GAAP | $ | 860.4 | $ | 295.2 | $ | 225.5 | $ | 171.7 | $ | 2.98 | |||||||||
% of net sales | 49.6 | % | 17.0 | % |
(1) | EBIT is defined as Earnings before income taxes. |
(2) | Includes pre-tax Selling, general and administrative expense of $0.5 for the three and nine months ended June 30, 2018, associated with certain information technology enablement expenses for Project Fuel. Includes Cost of products sold of $0.3 and $0.7 for the third quarter and first nine months of fiscal 2017, respectively, associated with obsolescence charges related to the exit of certain non-core product lines as part of the 2013 restructuring. |
Quarter Ended June 30, | Nine Months Ended June 30, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Earnings before income taxes | 21.4 | 65.5 | 140.3 | 199.9 | |||||||
Impairment charges | 24.4 | — | 24.4 | — | |||||||
Restructuring and related charges (1) | 15.9 | 12.8 | 19.6 | 25.6 | |||||||
Jack Black acquisition and integration costs | 2.3 | — | 4.9 | — | |||||||
Sale of Playtex gloves | 0.6 | — | (15.3 | ) | — | ||||||
Interest expense associated with debt | 16.5 | 17.6 | 52.5 | 52.3 | |||||||
Other expense (income), net | 3.5 | (1.6 | ) | 6.3 | (10.1 | ) | |||||
Adjusted operating income | 84.6 | 94.3 | 232.7 | 267.7 | |||||||
% of net sales | 13.6 | % | 14.8 | % | 13.7 | % | 15.4 | % |
(1) | Includes pre-tax Selling, general and administrative expense of $0.5 for the three and nine months ended June 30, 2018, associated with certain information technology enablement expenses for Project Fuel. Includes Cost of products sold of $0.3 and $0.7 for the third quarter and first nine months of fiscal 2017, respectively, associated with obsolescence charges related to the exit of certain non-core product lines as part of the 2013 restructuring. |
Nine Months Ended June 30, 2018 | Nine Months Ended June 30, 2017 | ||||||||||||||||||||||
Reported | Adjustments (1) | Adjusted (Non-GAAP) | Reported | Adjustments (1) | Adjusted (Non-GAAP) | ||||||||||||||||||
Earnings before income taxes | $ | 140.3 | $ | 33.6 | $ | 173.9 | $ | 199.9 | $ | 25.6 | $ | 225.5 | |||||||||||
Income tax provision | 56.4 | (13.9 | ) | 42.5 | 45.8 | 8.0 | 53.8 | ||||||||||||||||
Net earnings | $ | 83.9 | $ | 47.5 | $ | 131.4 | $ | 154.1 | $ | 17.6 | $ | 171.7 | |||||||||||
Effective tax rate | 40.2 | % | 22.9 | % | |||||||||||||||||||
Adjusted effective tax rate | 24.4 | % | 23.9 | % |
(1) | Includes adjustments for impairment charges, Jack Black acquisition and integration costs, restructuring charges, the sale of the Playtex gloves business, the associated tax impact of these charges and the impact of the Tax Act. See reconciliation of Net earnings to Adjusted net earnings. |
Net Sales | ||||||||||||||||||||||||||||||||||
Quarter Ended June 30, 2018 | ||||||||||||||||||||||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | All Other | Total | ||||||||||||||||||||||||||||||
Net Sales - Q3 '17 | $ | 358.5 | 161.1 | 86.4 | 31.5 | $ | 637.5 | |||||||||||||||||||||||||||
Organic | (25.3 | ) | (7.1 | )% | (4.2 | ) | (2.6 | )% | (2.5 | ) | (2.9 | )% | 0.8 | 2.5 | % | (31.2 | ) | (4.9 | )% | |||||||||||||||
Impact of disposition | — | — | % | (3.5 | ) | (2.2 | )% | — | — | % | — | — | % | (3.5 | ) | (0.5 | )% | |||||||||||||||||
Impact of acquisitions | — | — | % | 7.8 | 4.8 | % | — | — | % | — | — | % | 7.8 | 1.2 | % | |||||||||||||||||||
Impact of currency | 7.9 | 2.2 | % | 1.6 | 1.1 | % | 0.2 | 0.2 | % | 0.3 | 1.0 | % | 10.0 | 1.6 | % | |||||||||||||||||||
Net Sales - Q3 '18 | $ | 341.1 | (4.9 | )% | $ | 162.8 | 1.1 | % | $ | 84.1 | (2.7 | )% | $ | 32.6 | 3.5 | % | $ | 620.6 | (2.7 | )% |
Net Sales | ||||||||||||||||||||||||||||||||||
Nine Months Ended June 30, 2018 | ||||||||||||||||||||||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | All Other | Total | ||||||||||||||||||||||||||||||
Net Sales - FY '17 | $ | 1,007.3 | 369.3 | 258.7 | 98.2 | $ | 1,733.5 | |||||||||||||||||||||||||||
Organic | (58.6 | ) | (5.8 | )% | (2.2 | ) | (0.6 | )% | (12.5 | ) | (4.8 | )% | (3.7 | ) | (3.8 | )% | (77.0 | ) | (4.4 | )% | ||||||||||||||
Impact of disposition | — | — | % | (10.5 | ) | (2.8 | )% | — | — | % | — | — | % | (10.5 | ) | (0.6 | )% | |||||||||||||||||
Impact of acquisitions | — | — | % | 12.5 | 3.4 | % | — | — | % | — | — | % | 12.5 | 0.7 | % | |||||||||||||||||||
Impact of currency | 31.7 | 3.1 | % | 5.1 | 1.3 | % | 0.8 | 0.3 | % | 0.9 | 0.9 | % | 38.5 | 2.2 | % | |||||||||||||||||||
Net Sales - FY '18 | $ | 980.4 | (2.7 | )% | $ | 374.2 | 1.3 | % | $ | 247.0 | (4.5 | )% | $ | 95.4 | (2.9 | )% | $ | 1,697.0 | (2.1 | )% |
Segment Profit | ||||||||||||||||||||||||||||||||||
Quarter Ended June 30, 2018 | ||||||||||||||||||||||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | All Other | Total | ||||||||||||||||||||||||||||||
Segment Profit - Q3 '17 | $ | 59.8 | 42.4 | 7.6 | 6.7 | $ | 116.5 | |||||||||||||||||||||||||||
Organic | (5.7 | ) | (9.5 | )% | (9.2 | ) | (21.7 | )% | 3.4 | 44.7 | % | (1.4 | ) | (20.9 | )% | (12.9 | ) | (11.1 | )% | |||||||||||||||
Impact of disposition | — | — | % | (1.1 | ) | (2.6 | )% | — | — | % | — | — | % | (1.1 | ) | (0.9 | )% | |||||||||||||||||
Impact of acquisitions | — | — | % | 1.9 | 4.5 | % | — | — | % | — | — | % | 1.9 | 1.6 | % | |||||||||||||||||||
Impact of currency | 1.9 | 3.1 | % | 0.1 | 0.2 | % | 0.1 | 1.4 | % | 0.2 | 3.0 | % | 2.3 | 2.0 | % | |||||||||||||||||||
Segment Profit - Q3 '18 | $ | 56.0 | (6.4 | )% | $ | 34.1 | (19.6 | )% | $ | 11.1 | 46.1 | % | $ | 5.5 | (17.9 | )% | $ | 106.7 | (8.4 | )% |
Segment Profit | ||||||||||||||||||||||||||||||||||
Nine Months Ended June 30, 2018 | ||||||||||||||||||||||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | All Other | Total | ||||||||||||||||||||||||||||||
Segment Profit - FY '17 | $ | 205.0 | 94.1 | 17.5 | 21.3 | $ | 337.9 | |||||||||||||||||||||||||||
Organic | (32.6 | ) | (15.9 | )% | (15.9 | ) | (16.9 | )% | 8.2 | 46.9 | % | (4.9 | ) | (23.0 | )% | (45.2 | ) | (13.4 | )% | |||||||||||||||
Impact of disposition | — | — | % | (3.4 | ) | (3.6 | )% | — | — | % | — | — | % | (3.4 | ) | (1.0 | )% | |||||||||||||||||
Impact of acquisitions | — | — | % | 1.2 | 1.3 | % | — | — | % | — | — | % | 1.2 | 0.4 | % | |||||||||||||||||||
Impact of currency | 8.1 | 3.9 | % | 0.9 | 0.9 | % | 0.5 | 2.8 | % | 0.6 | 2.7 | % | 10.1 | 3.0 | % | |||||||||||||||||||
Segment Profit - FY '18 | $ | 180.5 | (12.0 | )% | $ | 76.9 | (18.3 | )% | $ | 26.2 | 49.7 | % | $ | 17.0 | (20.3 | )% | $ | 300.6 | (11.0 | )% |
Quarter Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net earnings | $ | 12.1 | $ | 54.9 | $ | 83.9 | $ | 154.1 | |||||||
Income tax provision | 9.3 | 10.6 | 56.4 | 45.8 | |||||||||||
Interest expense, net | 16.5 | 17.6 | 52.6 | 52.3 | |||||||||||
Depreciation and amortization | 24.2 | 22.5 | 73.4 | 71.6 | |||||||||||
EBITDA | $ | 62.1 | $ | 105.6 | $ | 266.3 | $ | 323.8 | |||||||
Impairment charges | 24.4 | — | 24.4 | — | |||||||||||
Restructuring and related costs (1) | 15.9 | 13.7 | 19.6 | 24.3 | |||||||||||
Jack Black acquisition and integration costs | 2.3 | — | 4.9 | — | |||||||||||
Sale of Playtex gloves business | 0.6 | — | (15.3 | ) | — | ||||||||||
Adjusted EBITDA | $ | 105.3 | $ | 119.3 | $ | 299.9 | $ | 348.1 |
(1) | Excludes $(0.9) and $1.3 of accelerated depreciation for the third quarter and first nine months of fiscal 2017, respectively, which are included within Depreciation and amortization. |
Adjusted EPS Outlook | ||
Fiscal 2018 GAAP EPS | $2.15 - $2.25 | |
Impairment charges | approx. | $0.45 |
Restructuring charges | approx. | $0.93 |
Jack Black acquisition and integration costs | approx. | $0.10 |
Sale of Playtex gloves business | approx. | $(0.28) |
Impact of tax reform - net transition tax | approx. | $0.32 |
Income taxes (1) | approx. | $(0.22) |
Fiscal 2018 Adjusted EPS Outlook (Non-GAAP) | $3.45 - $3.55 |
(1) | Income tax effect of the adjustments to Fiscal 2018 GAAP EPS noted above. |
Q3 2018 | Days (1) | Q2 2018 | Days (1) | Q4 2017 | Days (1) | ||||||||||||
Receivables, as reported | 222.8 | 244.6 | 269.1 | ||||||||||||||
Less: Trade allowance in accrued liabilities (2) | (24.5 | ) | (25.0 | ) | (26.0 | ) | |||||||||||
Receivables, adjusted | 198.3 | 32 | 219.6 | 35 | 243.1 | 39 | |||||||||||
Inventories, as reported | 348.5 | 107 | 348.9 | 108 | 346.1 | 108 | |||||||||||
Accounts payable, as reported | 225.9 | 70 | 226.7 | 70 | 218.4 | 68 | |||||||||||
Average adjusted working capital (3) | 320.9 | 341.8 | 370.8 | ||||||||||||||
% of net sales (4) | 14.2 | % | 15.0 | % | 16.1 | % |
(1) | Days sales outstanding is calculated using net sales for the trailing four-quarter period. Days in inventory and days payable outstanding are calculated using cost of products sold for the trailing four-quarter period. |
(2) | Trade allowances are recorded as a reduction of net sales per GAAP and reported in accrued expenses on the Condensed Consolidated Balance Sheets. |
(3) | Adjusted working capital is defined as receivables (less trade allowance in accrued liabilities), plus inventories, less accounts payable. Average adjusted working capital is calculated using an average of the four-quarter end balances for each working capital component as of June 30, 2018, March 31, 2018 and September 30, 2017, respectively. |
(4) | Average adjusted working capital divided by trailing four-quarter net sales. |
Q1 | Q2 | Q3 | Q4 | FY | ||
Gloves - Net Sales | Fiscal 2017 | $4.1 | $3.8 | $3.5 | $3.3 | $14.7 |
Gloves - Segment Profit | Fiscal 2017 | $1.2 | $1.3 | 1.1 | 0.7 | $4.3 |