Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Jun. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Statements of Income and Comprehensive Income

Three Months Ended June 30, 2014



(In thousands)	Prestige Brands Holdings, Inc.			Prestige Brands, Inc., the issuer			Combined Subsidiary Guarantors			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues
Net sales	$	—		$	25,410		$	108,898		$	10,951		$	(718	)	$	144,541
Other revenues	—			130			1,099			402			(470		)	1,161
Total revenues	—			25,540			109,997			11,353			(1,188		)	145,702

Cost of Sales
Cost of sales (exclusive of depreciation shown below)	—			9,448			50,515			4,023			(150		)	63,836
Gross profit	—			16,092			59,482			7,330			(1,038		)	81,866

Operating Expenses
Advertising and promotion	—			2,689			14,066			2,341			—			19,096
General and administrative	1,145			2,473			8,990			4,398			—			17,006
Depreciation and amortization	642			145			2,089			85			—			2,961
Total operating expenses	1,787			5,307			25,145			6,824			—			39,063
Operating income (loss)	(1,787		)	10,785			34,337			506			(1,038		)	42,803

Other (income) expense
Interest income	(12,133		)	(14,225		)	(762		)	(29		)	27,117			(32		)
Interest expense	8,548			14,685			17,805			764			(27,117		)	14,685
Equity in (income) loss of subsidiaries	(15,679		)	(10,898		)	959			—			25,618			—
Total other (income) expense	(19,264		)	(10,438		)	18,002			735			25,618			14,653
Income before income taxes	17,477			21,223			16,335			(229		)	(26,656		)	28,150
Provision (benefit) for income taxes	745			3,717			6,226			730			—			11,418
Net income (loss)	$	16,732		$	17,506		$	10,109		$	(959	)	$	(26,656	)	$	16,732

Comprehensive income, net of tax:
Currency translation adjustments	2,726			2,726			2,726			2,726			(8,178		)	2,726
Total other comprehensive income (loss)	2,726			2,726			2,726			2,726			(8,178		)	2,726
Comprehensive income (loss)	$	19,458		$	20,232		$	12,835		$	1,767		$	(34,834	)	$	19,458

Condensed Consolidating Statements of Income and Comprehensive Income

Three Months Ended June 30, 2013



(In thousands)	Prestige Brands Holdings, Inc.			Prestige Brands, Inc., the issuer			Combined Subsidiary Guarantors			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues
Net sales	$	—		$	24,150		$	116,269		$	1,223		$	—		$	141,642
Other revenues	—			68			863			434			(495		)	870
Total revenues	—			24,218			117,132			1,657			(495		)	142,512

Cost of Sales
Cost of sales (exclusive of depreciation shown below)	—			9,458			49,989			536			(495		)	59,488
Gross profit	—			14,760			67,143			1,121			—			83,024

Operating Expenses
Advertising and promotion	—			3,331			15,143			207			—			18,681
General and administrative	1,499			1,643			8,457			35			—			11,634
Depreciation and amortization	517			142			2,595			14			—			3,268
Total operating expenses	2,016			5,116			26,195			256			—			33,583
Operating income (loss)	(2,016		)	9,644			40,948			865			—			49,441

Other (income) expense
Interest income	(12,213		)	(14,323		)	—			(2		)	26,535			(3		)
Interest expense	8,607			15,908			17,928			—			(26,535		)	15,908
Equity in (income) loss of subsidiaries	(19,855		)	(14,553		)	(679		)	—			35,087			—
Total other (income) expense	(23,461		)	(12,968		)	17,249			(2		)	35,087			15,905
Income (loss) before income taxes	21,445			22,612			23,699			867			(35,087		)	33,536
Provision for income taxes	753			3,087			8,816			188			—			12,844
Net income (loss)	$	20,692		$	19,525		$	14,883		$	679		$	(35,087	)	$	20,692

Comprehensive income, net of tax:
Currency translation adjustments	1			—			—			(1		)	1			1
Total other comprehensive income (loss)	1			—			—			(1		)	1			1
Comprehensive income (loss)	$	20,693		$	19,525		$	14,883		$	678		$	(35,086	)	$	20,693

Condensed Consolidating Balance Sheet

June 30, 2014




(In thousands)	Prestige Brands Holdings, Inc.			Prestige Brands, Inc., the issuer			Combined Subsidiary Guarantors		Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	$	10,919		$	—		$	—	$	4,756	$	—		$	15,675
Accounts receivable, net	6			14,375			36,944		6,913		—			58,238
Inventories	—			11,069			49,131		8,018		(2,047		)	66,171
Deferred income tax assets	261			850			4,475		532		—			6,118
Prepaid expenses and other current assets	7,057			1,033			4,604		1,201		—			13,895
Total current assets	18,243			27,327			95,154		21,420		(2,047		)	160,097

Property and equipment, net	8,709			101			210		1,653		—			10,673
Goodwill	—			66,007			101,539		25,086		—			192,632
Intangible assets, net	—			192,727			1,167,882		107,563		—			1,468,172
Other long-term assets	—			22,376			—		—		—			22,376
Intercompany receivables	1,204,550			2,344,788			916,054		9,920		(4,475,312		)	—
Investment in subsidiary	1,513,089			842,650			115,930		—		(2,471,669		)	—
Total Assets	$	2,744,591		$	3,495,976		$	2,396,769	$	165,642	$	(6,949,028	)	$	1,853,950

Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	3,480			6,742			30,635		4,422		—			45,279
Accrued interest payable	—			9,449			—		—		—			9,449
Other accrued liabilities	2,929			7,027			7,780		5,855		—			23,591
Total current liabilities	6,409			23,218			38,415		10,277		—			78,319

Long-term debt
Principal amount	—			972,500			—		—		—			972,500
Less unamortized discount	—			(2,942		)	—		—		—			(2,942		)
Long-term debt, net of unamortized discount	—			969,558			—		—		—			969,558

Deferred income tax liabilities	—			57,644			162,218		46		—			219,908
Long term liabilities	—			—			—		358		—			358
Intercompany payables	2,152,375			1,000,173			1,283,766		38,998		(4,475,312		)	—
Total Liabilities	2,158,784			2,050,593			1,484,399		49,679		(4,475,312		)	1,268,143

Stockholders' Equity
Preferred share rights	—			—			—		—		—			—
Common stock	522			—			—		—		—			522
Additional paid-in capital	418,488			1,282,033			758,430		101,806		(2,142,269		)	418,488
Treasury stock, at cost - 240 shares	(2,545		)	—			—		—		—			(2,545		)
Accumulated other comprehensive income (loss), net of tax	3,465			3,465			3,465		3,465		(10,395		)	3,465
Retained earnings (accumulated deficit)	165,877			159,885			150,475		10,692		(321,052		)	165,877
Total Stockholders' Equity	585,807			1,445,383			912,370		115,963		(2,473,716		)	585,807
Total Liabilities and Stockholders' Equity	$	2,744,591		$	3,495,976		$	2,396,769	$	165,642	$	(6,949,028	)	$	1,853,950

Condensed Consolidating Balance Sheet

March 31, 2014



(In thousands)	Prestige Brands Holdings, Inc.			Prestige Brands, Inc., the issuer			Combined Subsidiary Guarantors		Combined Non- Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	$	24,644		$	—		$	—	$	3,687	$	—		$	28,331
Accounts receivable, net	473			14,245			45,885		4,447		—			65,050
Inventories	—			14,357			46,309		5,930		(1,010		)	65,586
Deferred income tax assets	260			925			4,914		445		—			6,544
Prepaid expenses and other current assets	8,004			113			2,898		659		—			11,674
Total current assets	33,381			29,640			100,006		15,168		(1,010		)	177,185

Property and equipment, net	8,966			112			226		293		—			9,597
Goodwill	—			66,007			101,540		23,364		—			190,911
Intangible assets, net	—			192,861			1,169,943		32,013		—			1,394,817
Other long-term assets	—			23,153			—		—		—			23,153
Intercompany receivable	655,146			1,824,482			656,759		13,595		(3,149,982		)	—
Investment in subsidiary	1,497,357			749,947			34,562		—		(2,281,866		)	—
Total Assets	$	2,194,850		$	2,886,202		$	2,063,036	$	84,433	$	(5,432,858	)	$	1,795,663

Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	4,416		$	7,658		$	33,553	$	2,659	$	—		$	48,286
Accrued interest payable	—			9,626			—		—		—			9,626
Other accrued liabilities	7,728			2,117			13,443		3,158		—			26,446
Total current liabilities	12,144			19,401			46,996		5,817		—			84,358

Long-term debt
Principal amount	—			937,500			—		—		—			937,500
Less unamortized discount	—			(3,086		)	—		—		—			(3,086		)
Long-term debt, net of unamortized discount	—			934,414			—		—		—			934,414

Deferred income tax liabilities	—			56,827			156,327		50		—			213,204
Other long-term liabilities	—			—			—		327		—			327
Intercompany payable	1,619,346			451,497			1,037,105		42,034		(3,149,982		)	—
Total Liabilities	1,631,490			1,462,139			1,240,428		48,228		(3,149,982		)	1,232,303

Stockholders' Equity
Common stock	520			—			—		—		—			520
Additional paid-in capital	414,387			1,280,945			681,503		23,815		(1,986,263		)	414,387
Treasury stock, at cost - 206 shares	(1,431		)	—			—		—		—			(1,431		)
Accumulated other comprehensive income (loss), net of tax	739			739			739		739		(2,217		)	739
Retained earnings (accumulated deficit)	149,145			142,379			140,366		11,651		(294,396		)	149,145
Total Stockholders' Equity	563,360			1,424,063			822,608		36,205		(2,282,876		)	563,360
Total Liabilities and Stockholders' Equity	$	2,194,850		$	2,886,202		$	2,063,036	$	84,433	$	(5,432,858	)	$	1,795,663

Condensed Consolidating Statement of Cash Flows

Three Months Ended June 30, 2014



(In thousands)	Prestige Brands Holdings, Inc.			Prestige Brands, Inc., the issuer			Combined Subsidiary Guarantors			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Operating Activities
Net income (loss)	$	16,732		$	17,506		$	10,109		$	(959	)	$	(26,656	)	$	16,732
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	642			145			2,089			85			—			2,961
Deferred income taxes	(1		)	892			6,330			(81		)	—			7,140
Amortization of deferred financing costs				851												851
Stock-based compensation costs	1,858															1,858
Amortization of debt discount				144												144
Equity in income of subsidiaries	(15,679		)	(10,898		)	959			—			25,618			—
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable	467			(130		)	8,941			(2,322		)	—			6,956
Inventories	—			3,288			(2,822		)	36			1,038			1,540
Prepaid expenses and other current assets	947			(920		)	(1,706		)	(524		)	—			(2,203		)
Accounts payable	(936		)	(916		)	(2,918		)	1,674			—			(3,096		)
Accrued liabilities	(4,800		)	4,733			(5,663		)	2,518			—			(3,212		)
Net cash provided by (used in) operating activities	(770		)	14,695			15,319			427			—			29,671

Investing Activities
Purchases of property and equipment	(385		)				(11		)	(100		)				(496		)
Acquisition of the Hydralyte brand	—			—			—			(77,991		)	—			(77,991		)
Intercompany activity, net				(77,991		)				77,991						—
Net cash (used in) provided by investing activities	(385		)	(77,991		)	(11		)	(100		)	—			(78,487		)

Financing Activities
Repayments under revolving credit agreement	—			(30,000		)	—			—			—			(30,000		)
Borrowings under revolving credit agreement	—			65,000			—			—			—			65,000
Payment of deferred financing costs	—			(74		)	—			—			—			(74		)
Proceeds from exercise of stock options	1,294			—			—			—			—			1,294
Proceeds from exercise of restricted stock exercises	57			—			—			—			—			57
Excess tax benefits from share-based awards	950			—			—			—			—			950
Shares surrendered as payment of tax withholding	(1,171		)	—			—			—			—			(1,171		)
Intercompany activity, net	(13,700		)	28,370			(15,308		)	638			—			—
Net cash provided by (used in) financing activities	(12,570		)	63,296			(15,308		)	638			—			36,056

Effect of exchange rate changes on cash and cash equivalents	—			—			—			104			—			104
(Decrease) increase in cash and cash equivalents	(13,725		)	—			—			1,069			—			(12,656		)
Cash and cash equivalents - beginning of period	24,644			—			—			3,687			—			28,331
Cash and cash equivalents - end of period	$	10,919		$	—		$	—		$	4,756		$	—		$	15,675

Condensed Consolidating Statement of Cash Flows

Three Months Ended June 30, 2013



(In thousands)	Prestige Brands Holdings, Inc.			Prestige Brands, Inc., the issuer			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Operating Activities
Net income (loss)	$	20,692		$	19,525		$	14,883		$	679		$	(35,087	)	$	20,692
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	517			142			2,595			14			—			3,268
Deferred income taxes	(21		)	529			6,291			(2		)	—			6,797
Amortization of deferred financing costs	—			892			—			—			—			892
Stock-based compensation costs	1,193			—			—			—			—			1,193
Amortization of debt discount	—			345			—			—			—			345
Gain on sale of assets	—			—			(2		)	—			—			(2		)
Equity in income of subsidiaries	(19,855		)	(14,553		)	(679		)	—			35,087			—
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable	(122		)	2,362			9,125			(295		)	—			11,070
Inventories	—			(623		)	(6,142		)	49			—			(6,716		)
Prepaid expenses and other current assets	2,100			(630		)	(1,269		)	(14		)	—			187
Accounts payable	(417		)	(2,960		)	(6,178		)	408			—			(9,147		)
Accrued liabilities	(5,468		)	246			(741		)	182			—			(5,781		)
Net cash provided by (used in) operating activities	(1,381		)	5,275			17,883			1,021			—			22,798

Investing Activities
Purchases of property and equipment	(1,364		)	—			—			—			—			(1,364		)
Proceeds from sale of property and equipment	—			—			2			—			—			2
Net cash (used in) provided by investing activities	(1,364		)	—			2			—			—			(1,362		)

Financing Activities
Repayments under revolving credit agreement	—			(18,000		)	—			—			—			(18,000		)
Payment of deferred financing costs	—			(280		)	—			—			—			(280		)
Proceeds from exercise of stock options	309			—			—			—			—			309
Shares surrendered as payment of tax withholding	(278		)	—			—			—			—			(278		)
Excess tax benefits from share-based awards	452			—			—			—			—			452
Intercompany activity, net	5,867			13,005			(17,885		)	(987		)	—			—
Net cash (used in) provided by financing activities	6,350			(5,275		)	(17,885		)	(987		)	—			(17,797		)

Effect of exchange rate changes on cash and cash equivalents	—			—			—			(3		)	—			(3		)
Increase in cash and cash equivalents	3,605			—			—			31			—			3,636
Cash and cash equivalents - beginning of period	14,720			—			—			950			—			15,670
Cash and cash equivalents - end of period	$	18,325		$	—		$	—		$	981		$	—		$	19,306