Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Jun. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Statements of Income and Comprehensive Income

Three Months Ended June 30, 2015



(In thousands)	Prestige Brands Holdings, Inc.			Prestige Brands, Inc., the issuer			Combined Subsidiary Guarantors			Combined Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues
Net sales	$	—		$	27,883		$	152,524		$	11,608		$	(728	)	$	191,287
Other revenues	—			96			819			498			(568		)	845
Total revenues	—			27,979			153,343			12,106			(1,296		)	192,132

Cost of Sales
Cost of sales (exclusive of depreciation shown below)	—			10,441			66,378			4,408			(1,331		)	79,896
Gross profit	—			17,538			86,965			7,698			35			112,236

Operating Expenses
Advertising and promotion	—			2,517			21,228			2,677			—			26,422
General and administrative	1,315			2,555			11,951			1,768			—			17,589
Depreciation and amortization	989			146			4,445			140			—			5,720
Total operating expenses	2,304			5,218			37,624			4,585			—			49,731
Operating income (loss)	(2,304		)	12,320			49,341			3,113			35			62,505

Other (income) expense
Interest income	(12,049		)	(21,408		)	(1,220		)	(112		)	34,762			(27		)
Interest expense	8,490			21,908			25,055			1,220			(34,762		)	21,911
Loss on extinguishment of debt	—			451			—			—			—			451
Equity in (income) loss of subsidiaries	(25,306		)	(16,955		)	(1,450		)	—			43,711			—
Total other (income) expense	(28,865		)	(16,004		)	22,385			1,108			43,711			22,335
Income (loss) before income taxes	26,561			28,324			26,956			2,005			(43,676		)	40,170
Provision for income taxes	388			4,025			9,029			555			—			13,997
Net income (loss)	$	26,173		$	24,299		$	17,927		$	1,450		$	(43,676	)	$	26,173

Comprehensive income, net of tax:
Currency translation adjustments	(405		)	(405		)	(405		)	(405		)	1,215			(405		)
Total other comprehensive income (loss)	(405		)	(405		)	(405		)	(405		)	1,215			(405		)
Comprehensive income (loss)	$	25,768		$	23,894		$	17,522		$	1,045		$	(42,461	)	$	25,768

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 (loss) before income taxes	17,477			21,223			16,335			(229		)	(26,656		)	28,150
Provision 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 Balance Sheet

June 30, 2015




(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	$	10,832		$	—		$	—		$	10,766		$	—		$	21,598
Accounts receivable, net	—			11,368			66,016			8,192			—			85,576
Inventories	—			7,492			61,651			6,045			(1,111		)	74,077
Deferred income tax assets	311			705			6,567			335			—			7,918
Prepaid expenses and other current assets	7,883			243			3,016			748			—			11,890
Total current assets	19,026			19,808			137,250			26,086			(1,111		)	201,059

Property and equipment, net	10,301			163			2,291			399			—			13,154
Goodwill	—			66,007			204,510			20,350			—			290,867
Intangible assets, net	—			192,191			1,850,501			87,168			—			2,129,860
Other long-term assets	—			1,562			—			—			—			1,562
Intercompany receivables	1,215,771			2,572,637			695,741			9,174			(4,493,323		)	—
Investment in subsidiary	1,569,115			1,245,085			67,970			—			(2,882,170		)	—
Total Assets	$	2,814,213		$	4,097,453		$	2,958,263		$	143,177		$	(7,376,604	)	$	2,636,502

Liabilities and Stockholders' Equity
Current liabilities
Current portion of long-term debt	$	—		$	8,525		$	—		$	—		$	—		$	8,525
Accounts payable	2,846			6,504			33,871			3,949			—			47,170
Accrued interest payable	—			9,359			—			—			—			9,359
Other accrued liabilities	4,710			1,400			27,116			3,512			—			36,738
Total current liabilities	7,556			25,788			60,987			7,461			—			101,792

Long-term debt
Principal amount	—			1,540,075			—			—			—			1,540,075
Less unamortized debt costs	—			(33,534		)	—			—			—			(33,534		)
Long-term debt, net	—			1,506,541			—			—			—			1,506,541

Deferred income tax liabilities	—			59,464			303,440			24			—			362,928
Other long-term liabilities	—			—			2,333			184			—			2,517
Intercompany payables	2,143,933			1,003,970			1,275,240			70,180			(4,493,323		)	—
Total Liabilities	2,151,489			2,595,763			1,642,000			77,849			(4,493,323		)	1,973,778

Stockholders' Equity
Common stock	530			—			—			—			—			530
Additional paid-in capital	437,554			1,280,948			1,131,578			74,031			(2,486,557		)	437,554
Treasury stock, at cost	(5,121		)	—			—			—			—			(5,121		)
Accumulated other comprehensive income (loss), net of tax	(23,817		)	(23,817		)	(23,817		)	(23,817		)	71,451			(23,817		)
Retained earnings (accumulated deficit)	253,578			244,559			208,502			15,114			(468,175		)	253,578
Total Stockholders' Equity	662,724			1,501,690			1,316,263			65,328			(2,883,281		)	662,724
Total Liabilities and Stockholders' Equity	$	2,814,213		$	4,097,453		$	2,958,263		$	143,177		$	(7,376,604	)	$	2,636,502

Condensed Consolidating Balance Sheet

March 31, 2015



(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	$	11,387		$	—		$	—		$	9,931		$	—		$	21,318
Accounts receivable, net	—			14,539			66,523			6,796			—			87,858
Inventories	—			8,667			60,297			6,182			(1,146		)	74,000
Deferred income tax assets	452			674			6,497			474			—			8,097
Prepaid expenses and other current assets	5,731			141			3,804			758			—			10,434
Total current assets	17,570			24,021			137,121			24,141			(1,146		)	201,707

Property and equipment, net	10,726			175			2,207			636			—			13,744
Goodwill	—			66,007			204,205			20,439			—			290,651
Intangible assets, net	—			192,325			1,854,798			87,577			—			2,134,700
Other long-term assets	—			1,165			—			—			—			1,165
Intercompany receivables	1,210,017			2,607,054			668,169			8,764			(4,494,004		)	—
Investment in subsidiary	1,545,575			1,228,535			65,564			—			(2,839,674		)	—
Total Assets	$	2,783,888		$	4,119,282		$	2,932,064		$	141,557		$	(7,334,824	)	$	2,641,967

Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	1,959		$	6,829		$	32,898		$	4,429		$	—		$	46,115
Accrued interest payable	—			11,974			—			—			—			11,974
Other accrued liabilities	10,378			1,153			25,795			3,622			—			40,948
Total current liabilities	12,337			19,956			58,693			8,051			—			99,037

Long-term debt
Principal amount	—			1,593,600			—			—			—			1,593,600
Less unamortized debt costs	—			(32,327		)	—			—			—			(32,327		)
Long-term debt, net	—			1,561,273			—			—			—			1,561,273

Deferred income tax liabilities	—			59,038			292,504			27			—			351,569
Other long-term liabilities	—			—			2,293			171			—			2,464
Intercompany payables	2,143,927			1,001,219			1,279,833			69,025			(4,494,004		)	—
Total Liabilities	2,156,264			2,641,486			1,633,323			77,274			(4,494,004		)	2,014,343

Stockholders' Equity
Common stock	525			—			—			—			—			525
Additional paid-in capital	426,584			1,280,948			1,131,578			74,031			(2,486,557		)	426,584
Treasury stock, at cost	(3,478		)	—			—			—			—			(3,478		)
Accumulated other comprehensive income (loss), net of tax	(23,412		)	(23,412		)	(23,412		)	(23,412		)	70,236			(23,412		)
Retained earnings (accumulated deficit)	227,405			220,260			190,575			13,664			(424,499		)	227,405
Total Stockholders' Equity	627,624			1,477,796			1,298,741			64,283			(2,840,820		)	627,624
Total Liabilities and Stockholders' Equity	$	2,783,888		$	4,119,282		$	2,932,064		$	141,557		$	(7,334,824	)	$	2,641,967

Condensed Consolidating Statement of Cash Flows

Three Months Ended June 30, 2015



(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)	$	26,173		$	24,299		$	17,927		$	1,450		$	(43,676	)	$	26,173
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	989			146			4,445			140			—			5,720
Gain on sale of asset	—			—			—			(36		)	—			(36		)
Deferred income taxes	141			395			10,866			134			—			11,536
Amortization of debt origination costs	—			2,138			—			—			—			2,138
Stock-based compensation costs	3,047			—			—			—			—			3,047
Loss on extinguishment of debt	—			451			—			—			—			451
Equity in income of subsidiaries	(25,306		)	(16,955		)	(1,450		)	—			43,711			—
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable	—			3,171			735			(1,328		)	—			2,578
Inventories	—			1,175			(1,457		)	106			(35		)	(211		)
Prepaid expenses and other current assets	(2,152		)	(102		)	722			10			—			(1,522		)
Accounts payable	861			(325		)	880			(633		)	—			783
Accrued liabilities	(5,668		)	(2,368		)	975			(75		)	—			(7,136		)
Net cash provided by (used in) operating activities	(1,915		)	12,025			33,643			(232		)	—			43,521

Investing Activities
Purchases of property and equipment	(648		)	—			(27		)	(105		)	—			(780		)
Proceeds from the sale of property and equipment	—			—			—			344			—			344
Net cash (used in) provided by investing activities	(648		)	—			(27		)	239			—			(436		)

Financing Activities
Term loan repayments	—			(25,000		)	—			—			—			(25,000		)
Borrowings under revolving credit agreement	—			15,000			—			—			—			15,000
Repayments under revolving credit agreement	—			(35,000		)	—			—			—			(35,000		)
Payments of debt origination costs	—			(4,172		)	—			—			—			(4,172		)
Proceeds from exercise of stock options	6,328			—			—			—			—			6,328
Proceeds from restricted stock exercises	544			—			—			—			—			544
Excess tax benefits from share-based awards	1,600			—			—			—			—			1,600
Fair value of shares surrendered as payment of tax withholding	(2,187		)	—			—			—			—			(2,187		)
Intercompany activity, net	(4,277		)	37,147			(33,616		)	746			—			—
Net cash provided by (used in) financing activities	2,008			(12,025		)	(33,616		)	746			—			(42,887		)

Effect of exchange rate changes on cash and cash equivalents	—			—			—			82			—			82
(Decrease) increase in cash and cash equivalents	(555		)	—			—			835			—			280
Cash and cash equivalents - beginning of period	11,387			—			—			9,931			—			21,318
Cash and cash equivalents - end of period	$	10,832		$	—		$	—		$	10,766		$	—		$	21,598

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 (used in) operating activities:
Depreciation and amortization	642			145			2,089			85			—			2,961
Deferred income taxes	(1		)	892			6,330			(81		)	—			7,140
Amortization of debt origination costs	—			995			—			—			—			995
Stock-based compensation costs	1,858			—			—			—			—			1,858
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 investing activities	(385		)	(77,991		)	(11		)	(100		)	—			(78,487		)

Financing Activities
Borrowings under revolving credit agreement	—			65,000			—			—			—			65,000
Repayments under revolving credit agreement	—			(30,000		)	—			—			—			(30,000		)
Payment of debt origination costs	—			(74		)	—			—			—			(74		)
Proceeds from exercise of stock options	1,294			—			—			—			—			1,294
Proceeds from restricted stock exercises	57			—			—			—			—			57
Excess tax benefits from share-based awards	950			—			—			—			—			950
Fair value of 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