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 | Press Release of Edgewell Personal Care Company issued on August 8, 2017. |
Exhibit No. | Description |
99.1 | Press Release of Edgewell Personal Care Company issued on August 8, 2017. |
Edgewell Personal Care Company 1350 Timberlake Manor Parkway St. Louis, MO 63017 | |
FOR IMMEDIATE RELEASE | Company Contact |
Chris Gough Vice President, Investor Relations 203-944-5706 Chris.Gough@Edgewell.com |
• | Net sales were $637.5 million in the third quarter of fiscal 2017, a decrease of 1.2% when compared to the prior year period on a reported basis, and down 0.6% on an organic basis. (Organic basis excludes sales growth from the Bulldog acquisition and the negative impact from currency.) |
• | GAAP Diluted Earnings Per Share ("EPS") and Adjusted EPS grew to $0.95 and $1.11, respectively, for the third quarter, compared to $0.61 and $0.66, respectively, a year ago. |
• | The Company is increasing its fiscal 2017 financial outlook for Adjusted EPS and lowering its outlook for organic net sales. |
• | 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 and acquisitions. This information is provided because these fluctuations can distort the underlying change in net sales either positively or negatively. |
• | Adjusted EBITDA is defined as earnings before income taxes, interest expense, net, depreciation and amortization and excludes items such as spin costs, restructuring charges and the sale of the industrial business. |
• | Adjusted operating income is defined as earnings before income taxes, interest expense associated with debt, other income, net, and excludes items such as spin costs, restructuring charges and the sale of the industrial business. |
• | Adjusted net earnings and adjusted earnings per share are defined as net earnings and diluted earnings per share excluding items such as spin costs, restructuring charges, the sale of the industrial business and the related tax effects of these items. |
• | Adjusted effective tax rate is defined as the effective tax rate excluding items such as spin costs, restructuring charges, the sale of the industrial business and the related tax effects of these items 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 net earnings. |
• | The Company is subject to risks related to its international operations, such as global economic conditions and currency fluctuations, that could adversely affect its results of operations; |
• | Competition within the Company's industries may hinder its ability to execute its business strategy, achieve profitability or maintain relationships with existing customers; |
• | Loss of reputation of the Company's leading brands or failure of its marketing plans could have an adverse effect on 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 its ongoing efforts to achieve cost savings; |
• | Loss of any of the Company's principal customers and emergence of new sales channels, such as e-Commerce, 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 obligations 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 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 Company's business is subject to increasing regulation in the U.S. and abroad, including environmental laws and regulations, that may expose it to significant liabilities; |
• | The resolution of the Company' 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; |
• | The Company's financial results could be negatively impacted by the United Kingdom's departure from the European Union; and |
• | The Company faces risks related to the separation of its Household Products business, which may adversely affect its business. |
Quarter Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net sales | $ | 637.5 | $ | 645.1 | $ | 1,733.5 | $ | 1,751.4 | |||||||
Cost of products sold | 315.4 | 333.9 | 873.8 | 901.6 | |||||||||||
Gross profit | 322.1 | 311.2 | 859.7 | 849.8 | |||||||||||
Selling, general and administrative expense | 97.5 | 104.8 | 295.2 | 304.9 | |||||||||||
Advertising and sales promotion expense | 114.2 | 122.5 | 247.3 | 254.1 | |||||||||||
Research and development expense | 16.4 | 17.5 | 50.2 | 50.2 | |||||||||||
Restructuring charges | 12.5 | 5.8 | 24.9 | 29.3 | |||||||||||
Industrial sale charges | — | — | — | 0.2 | |||||||||||
Interest expense associated with debt | 17.6 | 18.3 | 52.3 | 53.8 | |||||||||||
Other (income) expense, net | (1.6 | ) | 8.2 | (10.1 | ) | 1.2 | |||||||||
Earnings before income taxes | 65.5 | 34.1 | 199.9 | 156.1 | |||||||||||
Income tax provision (benefit) | 10.6 | (2.6 | ) | 45.8 | 29.6 | ||||||||||
Net earnings | $ | 54.9 | $ | 36.7 | $ | 154.1 | $ | 126.5 | |||||||
Earnings per share: | |||||||||||||||
Basic net earnings per share | $ | 0.96 | $ | 0.62 | $ | 2.68 | $ | 2.13 | |||||||
Diluted net earnings per diluted share | 0.95 | 0.61 | 2.67 | 2.11 | |||||||||||
Weighted-average shares outstanding: | |||||||||||||||
Basic | 57.2 | 59.1 | 57.4 | 59.4 | |||||||||||
Diluted | 57.5 | 59.7 | 57.7 | 59.9 |
Assets | June 30, 2017 | September 30, 2016 | |||||
Current assets | |||||||
Cash and cash equivalents | $ | 454.9 | $ | 738.9 | |||
Trade receivables, net | 312.9 | 260.7 | |||||
Inventories | 343.1 | 309.2 | |||||
Other current assets | 125.1 | 143.2 | |||||
Total current assets | 1,236.0 | 1,452.0 | |||||
Property, plant and equipment, net | 458.4 | 486.1 | |||||
Goodwill | 1,439.4 | 1,420.3 | |||||
Other intangible assets, net | 1,393.1 | 1,385.1 | |||||
Other assets | 28.9 | 28.0 | |||||
Total assets | $ | 4,555.8 | $ | 4,771.5 | |||
Liabilities and Shareholders' Equity | |||||||
Current liabilities | |||||||
Current maturities of long-term debt | $ | — | $ | 281.8 | |||
Notes payable | 17.7 | 18.5 | |||||
Accounts payable | 236.9 | 196.5 | |||||
Other current liabilities | 289.7 | 371.4 | |||||
Total current liabilities | 544.3 | 868.2 | |||||
Long-term debt | 1,580.1 | 1,544.2 | |||||
Deferred income tax liabilities | 254.8 | 255.3 | |||||
Other liabilities | 262.7 | 274.8 | |||||
Total liabilities | 2,641.9 | 2,942.5 | |||||
Shareholders' equity | |||||||
Common shares | 0.7 | 0.7 | |||||
Additional paid-in capital | 1,625.2 | 1,642.5 | |||||
Retained earnings | 1,101.2 | 946.0 | |||||
Treasury shares | (636.9 | ) | (563.0 | ) | |||
Accumulated other comprehensive loss | (176.3 | ) | (197.2 | ) | |||
Total shareholders' equity | 1,913.9 | 1,829.0 | |||||
Total liabilities and shareholders' equity | $ | 4,555.8 | $ | 4,771.5 |
Nine Months Ended June 30, | |||||||
2017 | 2016 | ||||||
Cash Flow from Operating Activities | |||||||
Net earnings | $ | 154.1 | $ | 126.5 | |||
Non-cash restructuring costs | 6.4 | 2.2 | |||||
Depreciation and amortization | 70.3 | 69.2 | |||||
Deferred compensation payments | (27.6 | ) | (7.3 | ) | |||
Share-based compensation expense | 16.6 | 20.0 | |||||
International pension funding | — | (100.5 | ) | ||||
Other, net | (12.2 | ) | (18.9 | ) | |||
Changes in current assets and liabilities used in operations | (88.2 | ) | (87.1 | ) | |||
Net cash from operating activities | 119.4 | 4.1 | |||||
Cash Flow from Investing Activities | |||||||
Capital expenditures | (45.4 | ) | (50.9 | ) | |||
Acquisitions, net of cash acquired | (34.0 | ) | — | ||||
Proceeds from sale of assets | 5.9 | — | |||||
Net cash used by investing activities | (73.5 | ) | (50.9 | ) | |||
Cash Flow from Financing Activities | |||||||
Cash proceeds from debt with original maturities greater than 90 days | 181.0 | 656.3 | |||||
Cash payments on debt with original maturities greater than 90 days | (423.0 | ) | (501.0 | ) | |||
Net increase (decrease) in debt with original maturities of 90 days or less | 0.1 | (15.5 | ) | ||||
Common shares purchased | (94.6 | ) | (114.5 | ) | |||
Other, net | 1.9 | (0.6 | ) | ||||
Net cash (used by) from financing activities | (334.6 | ) | 24.7 | ||||
Effect of exchange rate changes on cash | 4.7 | 1.5 | |||||
Net decrease in cash and cash equivalents | (284.0 | ) | (20.6 | ) | |||
Cash and cash equivalents, beginning of period | 738.9 | 712.1 | |||||
Cash and cash equivalents, end of period | $ | 454.9 | $ | 691.5 |
Quarter Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net Sales | |||||||||||||||
Wet Shave | $ | 358.5 | $ | 364.6 | $ | 1,007.3 | $ | 1,034.3 | |||||||
Sun and Skin Care | 161.1 | 151.3 | 369.3 | 337.3 | |||||||||||
Feminine Care | 86.4 | 97.1 | 258.7 | 281.2 | |||||||||||
All Other | 31.5 | 32.1 | 98.2 | 98.6 | |||||||||||
Total net sales | $ | 637.5 | $ | 645.1 | $ | 1,733.5 | $ | 1,751.4 | |||||||
Segment Profit | |||||||||||||||
Wet Shave | $ | 59.8 | $ | 45.5 | $ | 205.0 | $ | 190.0 | |||||||
Sun and Skin Care | 42.4 | 34.3 | 94.1 | 75.2 | |||||||||||
Feminine Care | 7.6 | 7.4 | 17.5 | 35.5 | |||||||||||
All Other | 6.7 | 6.1 | 21.3 | 21.3 | |||||||||||
Total segment profit | 116.5 | 93.3 | 337.9 | 322.0 | |||||||||||
General corporate and other expenses | (18.2 | ) | (20.5 | ) | (58.1 | ) | (58.5 | ) | |||||||
Spin costs (1) | — | (2.8 | ) | — | (12.0 | ) | |||||||||
Restructuring and related costs (2) | (12.8 | ) | (5.8 | ) | (25.6 | ) | (29.4 | ) | |||||||
Industrial sale charges | — | — | — | (0.2 | ) | ||||||||||
Amortization of intangibles | (4.0 | ) | (3.6 | ) | (12.1 | ) | (10.8 | ) | |||||||
Interest and other expense, net | (16.0 | ) | (26.5 | ) | (42.2 | ) | (55.0 | ) | |||||||
Total earnings before income taxes | $ | 65.5 | $ | 34.1 | $ | 199.9 | $ | 156.1 |
(1) | Includes Selling, general and administrative expense ("SG&A") of $2.8 and $11.8 for the third quarter and first nine months of fiscal 2016, respectively, and Cost of products sold of $0.2 for the first nine months of fiscal 2016 related to the separation of the Household Products business in July 2015. |
(2) | Includes Cost of products sold of $0.3 and $0.7 for the third quarter and first nine months of fiscal 2017, respectively, and $0.1 for the first nine months of fiscal 2016 associated with obsolescence charges related to the exit of certain non-core product lines as a part of the restructuring. |
Quarter Ended June 30, | |||||||||||||||
Net Earnings | Diluted EPS | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net Earnings and Diluted EPS - GAAP (Unaudited) | $ | 54.9 | $ | 36.7 | $ | 0.95 | $ | 0.61 | |||||||
Spin costs (1) | — | 2.8 | — | 0.05 | |||||||||||
Restructuring and related charges (2) | 12.8 | 5.8 | 0.23 | 0.10 | |||||||||||
Income taxes (3) | (4.0 | ) | (6.1 | ) | (0.07 | ) | (0.10 | ) | |||||||
Adjusted Net Earnings and Adjusted Diluted EPS - Non-GAAP | $ | 63.7 | $ | 39.2 | $ | 1.11 | $ | 0.66 | |||||||
Weighted-average shares - Diluted | 57.5 | 59.7 |
(1) | Includes SG&A of $2.8 for the third quarter of fiscal 2016 related to the separation of the Household Products business in July 2015. |
(2) | 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 restructuring. |
(3) | Includes adjustments to prior years' tax accrual of $3.3 for the third quarter of fiscal 2016. |
Nine Months Ended June 30, | |||||||||||||||
Net Earnings | Diluted EPS | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net Earnings and Diluted EPS - GAAP (Unaudited) | $ | 154.1 | $ | 126.5 | $ | 2.67 | $ | 2.11 | |||||||
Spin costs (1) | — | 12.0 | — | 0.20 | |||||||||||
Restructuring and related charges (2) | 25.6 | 29.4 | 0.45 | 0.50 | |||||||||||
Industrial sale charges | — | 0.2 | — | — | |||||||||||
Income taxes (3) | (8.0 | ) | (17.4 | ) | (0.14 | ) | (0.29 | ) | |||||||
Adjusted Net Earnings and Adjusted Diluted EPS - Non-GAAP | $ | 171.7 | $ | 150.7 | $ | 2.98 | $ | 2.52 | |||||||
Weighted-average shares - Diluted | 57.7 | 59.9 |
(1) | Includes SG&A of $11.8 and Cost of products sold of $0.2 for the first nine months of fiscal 2016 related to the separation of the Household Products business in July 2015. |
(2) | Includes Cost of products sold of $0.7 and $0.1 for the first nine months of fiscal 2017 and 2016, respectively, associated with obsolescence charges related to the exit of certain non-core product lines as part of the restructuring. |
(3) | Includes adjustments to prior years' tax accrual of $3.3 for the first nine months of fiscal 2016. |
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 | % |
Quarter Ended June 30, 2016 | |||||||||||||||||||
Gross Profit | SG&A | EBIT (1) | Net Earnings | Diluted EPS | |||||||||||||||
GAAP - Reported | $ | 311.2 | $ | 104.8 | $ | 34.1 | $ | 36.7 | $ | 0.61 | |||||||||
% of net sales | 48.2 | % | 16.2 | % | |||||||||||||||
Spin costs | — | 2.8 | 2.8 | 1.9 | 0.03 | ||||||||||||||
Restructuring and related charges | — | — | 5.8 | 3.9 | 0.08 | ||||||||||||||
Adjustment to prior years' tax accruals | — | — | — | (3.3 | ) | (0.06 | ) | ||||||||||||
Total Adjusted Non-GAAP | $ | 311.2 | $ | 102.0 | $ | 42.7 | $ | 39.2 | $ | 0.66 | |||||||||
% of net sales | 48.2 | % | 15.8 | % |
Nine Months Ended June 30, 2016 | |||||||||||||||||||
Gross Profit | SG&A | EBIT (1) | Net Earnings | Diluted EPS | |||||||||||||||
GAAP - Reported | $ | 849.8 | $ | 304.9 | $ | 156.1 | $ | 126.5 | $ | 2.11 | |||||||||
% of net sales | 48.5 | % | 17.4 | % | |||||||||||||||
Spin costs | 0.2 | 11.8 | 12.0 | 7.6 | 0.13 | ||||||||||||||
Restructuring and related charges (2) | 0.1 | — | 29.4 | 19.8 | 0.34 | ||||||||||||||
Industrial sale charges | — | — | 0.2 | 0.1 | — | ||||||||||||||
Adjustment to prior years' tax accrual | — | — | — | (3.3 | ) | (0.06 | ) | ||||||||||||
Total Adjusted Non-GAAP | $ | 850.1 | $ | 293.1 | $ | 197.7 | $ | 150.7 | $ | 2.52 | |||||||||
% of net sales | 48.5 | % | 16.7 | % |
(1) | EBIT is defined as Earnings before income taxes. |
(2) | Includes Cost of products sold of $0.3 and $0.7 for the third quarter and first nine months of fiscal 2017, respectively, and $0.1 for the first nine months of fiscal 2016 associated with obsolescence charges related to the exit of certain non-core product lines as part of the restructuring. |
Quarter Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Earnings before income taxes | $ | 65.5 | $ | 34.1 | $ | 199.9 | $ | 156.1 | |||||||
Spin costs (1) | — | 2.8 | — | 12.0 | |||||||||||
Restructuring and related charges (2) | 12.8 | 5.8 | 25.6 | 29.4 | |||||||||||
Industrial sale charges | — | — | — | 0.2 | |||||||||||
Interest expense associated with debt | 17.6 | 18.3 | 52.3 | 53.8 | |||||||||||
Other (income) expense, net | (1.6 | ) | 8.2 | (10.1 | ) | 1.2 | |||||||||
Adjusted operating income | $ | 94.3 | $ | 69.2 | $ | 267.7 | $ | 252.7 | |||||||
% of net sales | 14.8 | % | 10.7 | % | 15.4 | % | 14.4 | % |
(1) | Includes SG&A of $2.8 and $11.8 for the third quarter and first nine months of fiscal 2016, respectively, and Costs of products sold of $0.2 for the first nine months of fiscal 2016 related to the separation of the Household Products business in July 2015. |
(2) | Includes Cost of products sold of $0.3 and $0.7 for the third quarter and first nine months of fiscal 2017, respectively, and $0.1 for the first nine months of fiscal 2016 associated with obsolescence charges related to the exit of certain non-core product lines as part of the restructuring. |
Nine Months Ended June 30, 2017 | Nine Months Ended June 30, 2016 | ||||||||||||||||||||||
Reported | Adjustments (1) | Adjusted (Non-GAAP) | Reported | Adjustments (1) | Adjusted (Non-GAAP) | ||||||||||||||||||
Earnings before income taxes | $ | 199.9 | $ | 25.6 | $ | 225.5 | $ | 156.1 | $ | 41.6 | $ | 197.7 | |||||||||||
Income tax provision | 45.8 | 8.0 | 53.8 | 29.6 | 17.4 | 47.0 | |||||||||||||||||
Net earnings | $ | 154.1 | $ | 17.6 | $ | 171.7 | $ | 126.5 | $ | 24.2 | $ | 150.7 | |||||||||||
Effective tax rate | 22.9 | % | 19.0 | % | |||||||||||||||||||
Adjusted effective tax rate | 23.9 | % | 23.8 | % |
(1) | Includes adjustments for spin costs, restructuring charges, the sale of the industrial business and the associated tax impact of these charges. See reconciliation of Net earnings to Adjusted net earnings. |
Net Sales (In millions - Unaudited) | ||||||||||||||||||||||||||||||||||
Quarter Ended June 30, 2017 | ||||||||||||||||||||||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | All Other | Total | ||||||||||||||||||||||||||||||
Net Sales - Q3 '16 | $ | 364.6 | $ | 151.3 | $ | 97.1 | $ | 32.1 | $ | 645.1 | ||||||||||||||||||||||||
Organic | (0.2 | ) | (0.1 | )% | 7.4 | 4.9 | % | (10.5 | ) | (10.8 | )% | (0.4 | ) | (1.3 | )% | (3.7 | ) | (0.6 | )% | |||||||||||||||
Impact of acquisition | — | — | % | 4.0 | 2.6 | % | — | — | % | — | — | % | 4.0 | 0.6 | % | |||||||||||||||||||
Impact of currency | (5.9 | ) | (1.6 | )% | (1.6 | ) | (1.0 | )% | (0.2 | ) | (0.2 | )% | (0.2 | ) | (0.6 | )% | (7.9 | ) | (1.2 | )% | ||||||||||||||
Net Sales - Q3 '17 | $ | 358.5 | (1.7 | )% | $ | 161.1 | 6.5 | % | $ | 86.4 | (11.0 | )% | $ | 31.5 | (1.9 | )% | $ | 637.5 | (1.2 | )% |
Net Sales (In millions - Unaudited) | ||||||||||||||||||||||||||||||||||
Nine Months Ended June 30, 2017 | ||||||||||||||||||||||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | All Other | Total | ||||||||||||||||||||||||||||||
Net Sales - FY '16 | $ | 1,034.3 | $ | 337.3 | $ | 281.2 | $ | 98.6 | $ | 1,751.4 | ||||||||||||||||||||||||
Organic | (15.6 | ) | (1.5 | )% | 24.6 | 7.3 | % | (22.5 | ) | (8.0 | )% | (0.2 | ) | (0.2 | )% | (13.7 | ) | (0.8 | )% | |||||||||||||||
Impact of acquisition | — | — | % | 10.1 | 3.0 | % | — | — | % | — | — | % | 10.1 | 0.6 | % | |||||||||||||||||||
Impact of currency | (11.4 | ) | (1.1 | )% | (2.7 | ) | (0.8 | )% | — | — | % | (0.2 | ) | (0.2 | )% | (14.3 | ) | (0.8 | )% | |||||||||||||||
Net Sales - FY '17 | $ | 1,007.3 | (2.6 | )% | $ | 369.3 | 9.5 | % | $ | 258.7 | (8.0 | )% | $ | 98.2 | (0.4 | )% | $ | 1,733.5 | (1.0 | )% |
Segment Profit (In millions - Unaudited) | ||||||||||||||||||||||||||||||||||
Quarter Ended June 30, 2017 | ||||||||||||||||||||||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | All Other | Total | ||||||||||||||||||||||||||||||
Segment Profit - Q3 '16 | $ | 45.5 | $ | 34.3 | $ | 7.4 | $ | 6.1 | $ | 93.3 | ||||||||||||||||||||||||
Organic | 16.7 | 36.7 | % | 7.6 | 22.2 | % | 0.3 | 4.1 | % | 0.8 | 13.1 | % | 25.4 | 27.2 | % | |||||||||||||||||||
Impact of acquisition | — | — | % | 0.9 | 2.6 | % | — | — | % | — | — | % | 0.9 | 1.0 | % | |||||||||||||||||||
Impact of currency | (2.4 | ) | (5.3 | )% | (0.4 | ) | (1.2 | )% | (0.1 | ) | (1.4 | )% | (0.2 | ) | (3.3 | )% | (3.1 | ) | (3.3 | )% | ||||||||||||||
Segment Profit - Q3 '17 | $ | 59.8 | 31.4 | % | $ | 42.4 | 23.6 | % | $ | 7.6 | 2.7 | % | $ | 6.7 | 9.8 | % | $ | 116.5 | 24.9 | % |
Segment Profit (In millions - Unaudited) | ||||||||||||||||||||||||||||||||||
Nine Months Ended June 30, 2017 | ||||||||||||||||||||||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | All Other | Total | ||||||||||||||||||||||||||||||
Segment Profit - FY '16 | $ | 190.0 | $ | 75.2 | $ | 35.5 | $ | 21.3 | $ | 322.0 | ||||||||||||||||||||||||
Organic | 15.9 | 8.4 | % | 19.2 | 25.5 | % | (18.0 | ) | (50.7 | )% | 0.1 | 0.5 | % | 17.2 | 5.3 | % | ||||||||||||||||||
Impact of acquisition | — | — | % | 0.8 | 1.1 | % | — | — | % | — | — | % | 0.8 | 0.3 | % | |||||||||||||||||||
Impact of currency | (0.9 | ) | (0.5 | )% | (1.1 | ) | (1.5 | )% | — | — | % | (0.1 | ) | (0.5 | )% | (2.1 | ) | (0.7 | )% | |||||||||||||||
Segment Profit - FY '17 | $ | 205.0 | 7.9 | % | $ | 94.1 | 25.1 | % | $ | 17.5 | (50.7 | )% | $ | 21.3 | — | % | $ | 337.9 | 4.9 | % |
Quarter Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net earnings | $ | 54.9 | $ | 36.7 | $ | 154.1 | $ | 126.5 | |||||||
Income tax provision | 10.6 | (2.6 | ) | 45.8 | 29.6 | ||||||||||
Interest expense, net (1) | 17.6 | 21.3 | 52.3 | 53.8 | |||||||||||
Depreciation and amortization | 22.5 | 25.6 | 71.6 | 71.4 | |||||||||||
EBITDA | 105.6 | 81.0 | 323.8 | 281.3 | |||||||||||
Spin costs | — | 2.8 | — | 12.0 | |||||||||||
Restructuring and related costs (2) | 13.7 | 4.8 | 24.3 | 27.2 | |||||||||||
Industrial sale charges | — | — | — | 0.2 | |||||||||||
Adjusted EBITDA | $ | 119.3 | $ | 88.6 | $ | 348.1 | $ | 320.7 |
(1) | Interest expense, net for the third quarter and first nine months of fiscal 2016 includes $3.2 and $0.6, respectively, of interest expense recorded in relation to settlements with tax authorities. |
(2) | Excludes $(0.9) and $1.0 of accelerated depreciation for the third quarters of fiscal 2017 and 2016, respectively, and $1.3 and $2.2 for the first nine months of fiscal 2017 and 2016, respectively, which are included within Depreciation and amortization. |
Adjusted EPS Outlook | ||
Fiscal 2017 GAAP EPS | $3.55 - $3.70 | |
Restructuring and related costs | approx. | $0.50 |
Income taxes | approx. | $(0.15) |
Fiscal 2017 Adjusted EPS Outlook (Non-GAAP) | $3.90 - $4.05 |
Q3 2017 | Days (1) | Q2 2017 | Days (1) | Q4 2016 | Days (1) | |||||||||||||||
Receivables, as reported | $ | 278.2 | $ | 277.2 | $ | 275.2 | ||||||||||||||
Less: Trade allowance in accrued liabilities (2) | (27.3 | ) | (27.6 | ) | (28.1 | ) | ||||||||||||||
Receivables, adjusted | 250.9 | 39 | 249.6 | 39 | 247.1 | 38 | ||||||||||||||
Inventories, as reported | 339.4 | 105 | 337.0 | 103 | 345.3 | 105 | ||||||||||||||
Accounts payable, as reported | 211.6 | 66 | 203.2 | 62 | 211.4 | 64 | ||||||||||||||
Average adjusted working capital (3) | $ | 378.7 | $ | 383.4 | $ | 381.0 | ||||||||||||||
% of net sales (4) | 16.2 | % | 16.3 | % | 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, 2017, March 31, 2017 and September 30, 2016, respectively. |
(4) | Average adjusted working capital divided by trailing four-quarter net sales. |