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 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 on a reported basis were $564.9 million in the fourth quarter of fiscal 2017, a decrease of 7.5% when compared to the prior year quarter, and $2,298.4 million for the full year, a decrease of 2.7% compared to the prior year. Organic net sales were down 8.4% for the quarter and 2.8% for the full year. (Organic net sales exclude sales growth from the Bulldog acquisition and the impact of currency fluctuations.) |
• | GAAP net loss for the quarter was $148.4 million ($2.61 per share) and GAAP net earnings for the year were $5.7 million ($0.10 per share), including a non-cash intangible asset pre-tax impairment charge of $319.0 million. |
• | Adjusted Earnings Per Share were $1.00 for the quarter and $3.97 for the full year. |
• | The Company delivered net cash flow from operating activities of $296 million for the full year. |
• | The Company provided its 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 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 impairment charges, 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 impairment charges, 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 impairment charges, 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 impairment charges, 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 adjusted for the net impact of non-cash impairments. |
• | 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. |
• | Our historical financial information is not necessarily representative of the results that we would have achieved had the separation of our household products business (the "Separation") taken place before July 1, 2015, and may not be a reliable indicator of our future results. |
• | If 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 September 30, | Year Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net sales | $ | 564.9 | $ | 610.6 | $ | 2,298.4 | $ | 2,362.0 | |||||||
Cost of products sold | 294.0 | 300.5 | 1,167.8 | 1,202.1 | |||||||||||
Gross profit | 270.9 | 310.1 | 1,130.6 | 1,159.9 | |||||||||||
Selling, general and administrative expense | 94.8 | 107.8 | 390.0 | 412.7 | |||||||||||
Advertising and sales promotion expense | 71.0 | 82.6 | 318.3 | 336.7 | |||||||||||
Research and development expense | 17.4 | 21.7 | 67.6 | 71.9 | |||||||||||
Impairment charge | 319.0 | 6.5 | 319.0 | 6.5 | |||||||||||
Restructuring charges | 4.7 | 7.7 | 29.6 | 37.0 | |||||||||||
Industrial sale charges | — | — | — | 0.2 | |||||||||||
Interest expense associated with debt | 16.9 | 18.0 | 69.2 | 71.8 | |||||||||||
Other (income) expense, net | (0.1 | ) | 2.0 | (10.2 | ) | 3.2 | |||||||||
(Loss) earnings before income taxes | (252.8 | ) | 63.8 | (52.9 | ) | 219.9 | |||||||||
Income tax (benefit) provision | (104.4 | ) | 11.6 | (58.6 | ) | 41.2 | |||||||||
Net (loss) earnings | $ | (148.4 | ) | $ | 52.2 | $ | 5.7 | $ | 178.7 | ||||||
Earnings per share: | |||||||||||||||
Basic net (loss) earnings per share | $ | (2.61 | ) | $ | 0.89 | $ | 0.10 | $ | 3.02 | ||||||
Diluted net (loss) earnings per diluted share | (2.61 | ) | 0.88 | 0.10 | 2.99 | ||||||||||
Weighted-average shares outstanding: | |||||||||||||||
Basic | 56.7 | 58.6 | 57.3 | 59.2 | |||||||||||
Diluted | 56.7 | 59.2 | 57.5 | 59.7 |
September 30, 2017 | September 30, 2016 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 502.9 | $ | 738.9 | |||
Trade receivables, net | 224.1 | 260.7 | |||||
Inventories | 333.5 | 309.2 | |||||
Other current assets | 125.7 | 143.2 | |||||
Total current assets | 1,186.2 | 1,452.0 | |||||
Property, plant and equipment, net | 453.4 | 486.1 | |||||
Goodwill | 1,445.9 | 1,420.3 | |||||
Other intangible assets, net | 1,071.7 | 1,385.1 | |||||
Other assets | 31.6 | 28.0 | |||||
Total assets | $ | 4,188.8 | $ | 4,771.5 | |||
Liabilities and Shareholders' Equity | |||||||
Current liabilities | |||||||
Current maturities of long-term debt | $ | — | $ | 281.8 | |||
Notes payable | 19.4 | 18.5 | |||||
Accounts payable | 223.6 | 196.5 | |||||
Other current liabilities | 281.4 | 371.4 | |||||
Total current liabilities | 524.4 | 868.2 | |||||
Long-term debt | 1,525.4 | 1,544.2 | |||||
Deferred income tax liabilities | 181.8 | 255.3 | |||||
Other liabilities | 215.5 | 274.8 | |||||
Total liabilities | 2,447.1 | 2,942.5 | |||||
Shareholders' equity | |||||||
Common shares | 0.7 | 0.7 | |||||
Additional paid-in capital | 1,623.4 | 1,642.5 | |||||
Retained earnings | 952.9 | 946.0 | |||||
Treasury shares | (703.9 | ) | (563.0 | ) | |||
Accumulated other comprehensive loss | (131.4 | ) | (197.2 | ) | |||
Total shareholders' equity | 1,741.7 | 1,829.0 | |||||
Total liabilities and shareholders' equity | $ | 4,188.8 | $ | 4,771.5 |
Year Ended September 30, | |||||||
2017 | 2016 | ||||||
Cash Flow from Operating Activities | |||||||
Net earnings | $ | 5.7 | $ | 178.7 | |||
Non-cash restructuring costs | 6.8 | 3.9 | |||||
Depreciation and amortization | 94.4 | 92.6 | |||||
Impairment charge | 319.0 | 6.5 | |||||
Deferred compensation payments | (27.9 | ) | (10.2 | ) | |||
Share-based compensation expense | 22.2 | 25.6 | |||||
International pension funding | — | (100.5 | ) | ||||
Deferred income taxes | (87.4 | ) | 7.8 | ||||
Other, net | (15.9 | ) | (9.5 | ) | |||
Changes in current assets and liabilities used in operations | (20.7 | ) | (18.5 | ) | |||
Net cash from operating activities | 296.2 | 176.4 | |||||
Cash Flow from Investing Activities | |||||||
Capital expenditures | (69.0 | ) | (69.5 | ) | |||
Acquisitions, net of cash acquired | (34.0 | ) | — | ||||
Proceeds from sale of assets | 18.4 | — | |||||
Net cash used by investing activities | (84.6 | ) | (69.5 | ) | |||
Cash Flow from Financing Activities | |||||||
Cash proceeds from debt with original maturities greater than 90 days | 271.0 | 756.3 | |||||
Cash payments on debt with original maturities greater than 90 days | (568.0 | ) | (631.0 | ) | |||
Net increase (decrease) in debt with original maturities of 90 days or less | 2.0 | (11.1 | ) | ||||
Deferred finance expense | — | (0.6 | ) | ||||
Common shares purchased | (165.4 | ) | (196.6 | ) | |||
Other, net | (0.2 | ) | — | ||||
Net cash used by financing activities | (460.6 | ) | (83.0 | ) | |||
Effect of exchange rate changes on cash | 13.0 | 2.9 | |||||
Net decrease in cash and cash equivalents | (236.0 | ) | 26.8 | ||||
Cash and cash equivalents, beginning of period | 738.9 | 712.1 | |||||
Cash and cash equivalents, end of period | $ | 502.9 | $ | 738.9 |
Quarter Ended September 30, | Year Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net Sales | |||||||||||||||
Wet Shave | $ | 368.0 | $ | 391.5 | $ | 1,375.3 | $ | 1,425.8 | |||||||
Sun and Skin Care | 71.1 | 77.6 | 440.4 | 414.9 | |||||||||||
Feminine Care | 92.9 | 107.7 | 351.6 | 388.9 | |||||||||||
All Other | 32.9 | 33.8 | 131.1 | 132.4 | |||||||||||
Total net sales | $ | 564.9 | $ | 610.6 | $ | 2,298.4 | $ | 2,362.0 | |||||||
Segment Profit | |||||||||||||||
Wet Shave | $ | 89.9 | $ | 100.2 | $ | 294.9 | $ | 290.2 | |||||||
Sun and Skin Care | 4.7 | 14.3 | 98.8 | 89.5 | |||||||||||
Feminine Care | 11.4 | 3.6 | 28.9 | 39.1 | |||||||||||
All Other | 5.3 | 7.1 | 26.6 | 28.4 | |||||||||||
Total segment profit | 111.3 | 125.2 | 449.2 | 447.2 | |||||||||||
General corporate and other expenses | (17.9 | ) | (21.9 | ) | (76.0 | ) | (80.4 | ) | |||||||
Impairment charge | (319.0 | ) | (6.5 | ) | (319.0 | ) | (6.5 | ) | |||||||
Spin costs (1) | — | — | — | (12.0 | ) | ||||||||||
Restructuring and related costs (2) | (4.7 | ) | (9.4 | ) | (30.3 | ) | (38.8 | ) | |||||||
Industrial sale charges | — | — | — | (0.2 | ) | ||||||||||
Amortization of intangibles | (5.7 | ) | (3.6 | ) | (17.8 | ) | (14.4 | ) | |||||||
Interest and other expense, net | (16.8 | ) | (20.0 | ) | (59.0 | ) | (75.0 | ) | |||||||
Total (loss) earnings before income taxes | $ | (252.8 | ) | $ | 63.8 | $ | (52.9 | ) | $ | 219.9 |
(1) | Includes Selling, general and administrative expense ("SG&A") of $11.8 and Cost of products sold of $0.2 for the year ended September 30, 2016 related to the separation of the Household Products business in July 2015. |
(2) | Includes Cost of products sold of $0.7 for the year ended September 30, 2017, and $1.7 and $1.8 for the quarter and year ended September 30, 2016, respectively, associated with obsolescence charges related to the exit of certain non-core product lines as a part of the restructuring. |
Quarter Ended September 30, | |||||||||||||||
Net Earnings | Diluted EPS | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net (Loss) Earnings and Diluted EPS - GAAP (Unaudited) | $ | (148.4 | ) | $ | 52.2 | $ | (2.61 | ) | $ | 0.88 | |||||
Impairment charge | 319.0 | 6.5 | 5.63 | 0.11 | |||||||||||
Restructuring and related charges (1) | 4.7 | 9.4 | 0.08 | 0.16 | |||||||||||
Income taxes | (118.6 | ) | (5.6 | ) | (2.09 | ) | (0.09 | ) | |||||||
Impact of basic/dilutive shares(2) | — | — | (0.01 | ) | — | ||||||||||
Adjusted Net Earnings and Adjusted Diluted EPS - Non-GAAP | $ | 56.7 | $ | 62.5 | $ | 1.00 | $ | 1.06 | |||||||
Weighted-average shares - Diluted | 56.7 | 59.2 |
(1) | Includes Cost of products sold of $1.7 for the quarter ended September 30, 2016 associated with obsolescence charges related to the exit of certain non-core product lines as part of the restructuring. |
(2) | All EPS impacts are calculated using diluted weighted-average shares outstanding. For the quarter ended September 30, 2017, this reflects the impact of 0.3 dilutive restricted stock equivalent ("RSE") awards which were excluded from the GAAP EPS calculation due to the reported net loss for the period. |
Year Ended September 30, | |||||||||||||||
Net Earnings | Diluted EPS | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net Earnings and Diluted EPS - GAAP (Unaudited) | $ | 5.7 | $ | 178.7 | $ | 0.10 | $ | 2.99 | |||||||
Impairment charge | 319.0 | 6.5 | 5.55 | 0.11 | |||||||||||
Spin costs (1) | — | 12.0 | — | 0.20 | |||||||||||
Restructuring and related charges (2) | 30.3 | 38.8 | 0.53 | 0.65 | |||||||||||
Industrial sale charges | — | 0.2 | — | — | |||||||||||
Income taxes | (126.6 | ) | (22.9 | ) | (2.21 | ) | (0.38 | ) | |||||||
Adjusted Net Earnings and Adjusted Diluted EPS - Non-GAAP | $ | 228.4 | $ | 213.3 | $ | 3.97 | $ | 3.57 | |||||||
Weighted-average shares - Diluted | 57.5 | 59.7 |
(1) | Includes SG&A of $11.8 and Cost of products sold of $0.2 for the year ended September 30, 2016 related to the separation of the Household Products business in July 2015. |
(2) | Includes Cost of products sold of $0.7 and $1.8 for the years ended September 30, 2017 and 2016, respectively, associated with obsolescence charges related to the exit of certain non-core product lines as part of the restructuring. |
Quarter Ended September 30, 2017 | |||||||||||||||||||
Gross Profit | SG&A | EBIT (1) | Net (Loss) Earnings | Diluted EPS | |||||||||||||||
GAAP - Reported | $ | 270.9 | $ | 94.8 | $ | (252.8 | ) | $ | (148.4 | ) | $ | (2.61 | ) | ||||||
% of net sales | 48.0 | % | 16.8 | % | |||||||||||||||
Impairment charges | — | — | 319.0 | 201.9 | 3.56 | ||||||||||||||
Restructuring and related charges (2) | — | — | 4.7 | 3.2 | 0.06 | ||||||||||||||
Impact of basic/dilutive shares (3) | — | — | — | — | (0.01 | ) | |||||||||||||
Total Adjusted Non-GAAP | $ | 270.9 | $ | 94.8 | $ | 70.9 | $ | 56.7 | $ | 1.00 | |||||||||
% of net sales | 48.0 | % | 16.8 | % |
Year Ended September 30, 2017 | |||||||||||||||||||
Gross Profit | SG&A | EBIT (1) | Net Earnings | Diluted EPS | |||||||||||||||
GAAP - Reported | $ | 1,130.6 | $ | 390.0 | $ | (52.9 | ) | $ | 5.7 | $ | 0.10 | ||||||||
% of net sales | 49.2 | % | 17.0 | % | |||||||||||||||
Impairment charges | — | — | 319.0 | 201.9 | 3.51 | ||||||||||||||
Restructuring and related charges (2) | 0.7 | — | 30.3 | 20.8 | 0.36 | ||||||||||||||
Total Adjusted Non-GAAP | $ | 1,131.3 | $ | 390.0 | $ | 296.4 | $ | 228.4 | $ | 3.97 | |||||||||
% of net sales | 49.2 | % | 17.0 | % |
Quarter Ended September 30, 2016 | |||||||||||||||||||
Gross Profit | SG&A | EBIT (1) | Net Earnings | Diluted EPS | |||||||||||||||
GAAP - Reported | $ | 310.1 | $ | 107.8 | $ | 63.8 | $ | 52.2 | $ | 0.88 | |||||||||
% of net sales | 50.8 | % | 17.7 | % | |||||||||||||||
Impairment charges | — | — | 6.5 | 4.1 | 0.07 | ||||||||||||||
Restructuring and related charges (2) | 1.7 | — | 9.4 | 6.2 | 0.11 | ||||||||||||||
Total Adjusted Non-GAAP | $ | 311.8 | $ | 107.8 | $ | 79.7 | $ | 62.5 | $ | 1.06 | |||||||||
% of net sales | 51.1 | % | 17.7 | % |
Year Ended September 30, 2016 | |||||||||||||||||||
Gross Profit | SG&A | EBIT (1) | Net Earnings | Diluted EPS | |||||||||||||||
GAAP - Reported | $ | 1,159.9 | $ | 412.7 | $ | 219.9 | $ | 178.7 | $ | 2.99 | |||||||||
% of net sales | 49.1 | % | 17.5 | % | |||||||||||||||
Impairment charges | — | — | 6.5 | 4.1 | 0.07 | ||||||||||||||
Spin costs | 0.2 | 11.8 | 12.0 | 7.6 | 0.13 | ||||||||||||||
Restructuring and related charges (2) | 1.8 | — | 38.8 | 26.1 | 0.43 | ||||||||||||||
Industrial sale charges | — | — | 0.2 | 0.1 | — | ||||||||||||||
Separation-related tax adjustments | — | — | — | (3.3 | ) | (0.05 | ) | ||||||||||||
Total Adjusted Non-GAAP | $ | 1,161.9 | $ | 400.9 | $ | 277.4 | $ | 213.3 | $ | 3.57 | |||||||||
% of net sales | 49.2 | % | 17.0 | % |
(1) | EBIT is defined as Earnings before income taxes. |
(2) | Includes Cost of products sold of $0.7 for the year ended September 30, 2017 and $1.7 and $1.8 for the quarter and year ended September 30, 2016, respectively, associated with obsolescence charges related to the exit of certain non-core product lines as part of the restructuring. |
(3) | All EPS impacts are calculated using diluted weighted-average shares outstanding. For the fourth quarter of fiscal 2017, this reflects the impact of 0.3 dilutive RSE awards which were excluded from the GAAP EPS calculation due to the reported net loss. |
Quarter Ended September 30, | Year Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Loss) earnings before income taxes | $ | (252.8 | ) | $ | 63.8 | $ | (52.9 | ) | $ | 219.9 | |||||
Impairment charges | 319.0 | 6.5 | 319.0 | 6.5 | |||||||||||
Spin costs (1) | — | — | — | 12.0 | |||||||||||
Restructuring and related charges (2) | 4.7 | 9.4 | 30.3 | 38.8 | |||||||||||
Industrial sale charges | — | — | — | 0.2 | |||||||||||
Interest expense associated with debt | 16.9 | 18.0 | 69.2 | 71.8 | |||||||||||
Other (income) expense, net | (0.1 | ) | 2.0 | (10.2 | ) | 3.2 | |||||||||
Adjusted operating income | $ | 87.7 | $ | 99.7 | $ | 355.4 | $ | 352.4 | |||||||
% of net sales | 15.5 | % | 16.3 | % | 15.5 | % | 14.9 | % |
(1) | Includes SG&A of $11.8 and Costs of products sold of $0.2 for the year ended September 30, 2016 related to the separation of the Household Products business in July 2015. |
(2) | Includes Cost of products sold of $0.7 for the year ended September 30, 2017, and $1.7 and $1.8 for the quarter and year ended September 30, 2016, respectively, associated with obsolescence charges related to the exit of certain non-core product lines as part of the restructuring. |
Year Ended September 30, 2017 | Year Ended September 30, 2016 | ||||||||||||||||||||||
Reported | Adjustments (1) | Adjusted (Non-GAAP) | Reported | Adjustments (1) | Adjusted (Non-GAAP) | ||||||||||||||||||
(Loss) earnings before income taxes | $ | (52.9 | ) | $ | 349.3 | $ | 296.4 | $ | 219.9 | $ | 57.5 | $ | 277.4 | ||||||||||
Income tax provision | (58.6 | ) | 126.6 | 68.0 | 41.2 | 22.9 | 64.1 | ||||||||||||||||
Net earnings | $ | 5.7 | $ | 222.7 | $ | 228.4 | $ | 178.7 | $ | 34.6 | $ | 213.3 | |||||||||||
Effective tax rate | 110.8 | % | 18.7 | % | |||||||||||||||||||
Adjusted effective tax rate | 22.9 | % | 23.1 | % |
(1) | Includes adjustments for spin costs, restructuring charges, the sale of the industrial business, impairment charges and the associated tax impact of these charges. See reconciliation of Net earnings to Adjusted net earnings. |
Net Sales (In millions - Unaudited) | ||||||||||||||||||||||||||||||||||
Quarter Ended September 30, 2017 | ||||||||||||||||||||||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | All Other | Total | ||||||||||||||||||||||||||||||
Net Sales - Q4 '16 | $ | 391.5 | $ | 77.6 | $ | 107.7 | $ | 33.8 | $ | 610.6 | ||||||||||||||||||||||||
Organic | (23.6 | ) | (6.0 | )% | (11.4 | ) | (14.7 | )% | (15.1 | ) | (14.0 | )% | (1.2 | ) | (3.6 | )% | (51.3 | ) | (8.4 | )% | ||||||||||||||
Impact of acquisition | — | — | % | 4.5 | 5.8 | % | — | — | % | — | — | % | 4.5 | 0.7 | % | |||||||||||||||||||
Impact of currency | 0.1 | — | % | 0.4 | 0.5 | % | 0.3 | 0.3 | % | 0.3 | 0.9 | % | 1.1 | 0.2 | % | |||||||||||||||||||
Net Sales - Q4 '17 | $ | 368.0 | (6.0 | )% | $ | 71.1 | (8.4 | )% | $ | 92.9 | (13.7 | )% | $ | 32.9 | (2.7 | )% | $ | 564.9 | (7.5 | )% |
Net Sales (In millions - Unaudited) | ||||||||||||||||||||||||||||||||||
Year Ended September 30, 2017 | ||||||||||||||||||||||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | All Other | Total | ||||||||||||||||||||||||||||||
Net Sales - FY '16 | $ | 1,425.8 | $ | 414.9 | $ | 388.9 | $ | 132.4 | $ | 2,362.0 | ||||||||||||||||||||||||
Organic | (39.2 | ) | (2.7 | )% | 13.2 | 3.2 | % | (37.6 | ) | (9.7 | )% | (1.4 | ) | (1.1 | )% | (65.0 | ) | (2.8 | )% | |||||||||||||||
Impact of acquisition | — | — | % | 14.6 | 3.5 | % | — | — | % | — | — | % | 14.6 | 0.6 | % | |||||||||||||||||||
Impact of currency | (11.3 | ) | (0.8 | )% | (2.3 | ) | (0.6 | )% | 0.3 | 0.1 | % | 0.1 | 0.1 | % | (13.2 | ) | (0.5 | )% | ||||||||||||||||
Net Sales - FY '17 | $ | 1,375.3 | (3.5 | )% | $ | 440.4 | 6.1 | % | $ | 351.6 | (9.6 | )% | $ | 131.1 | (1.0 | )% | $ | 2,298.4 | (2.7 | )% |
Segment Profit (In millions - Unaudited) | ||||||||||||||||||||||||||||||||||
Quarter Ended September 30, 2017 | ||||||||||||||||||||||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | All Other | Total | ||||||||||||||||||||||||||||||
Segment Profit - Q4 '16 | $ | 100.2 | $ | 14.3 | $ | 3.6 | $ | 7.1 | $ | 125.2 | ||||||||||||||||||||||||
Organic | (7.6 | ) | (7.6 | )% | (9.0 | ) | (62.9 | )% | 7.8 | 216.7 | % | (2.0 | ) | (28.2 | )% | (10.8 | ) | (8.6 | )% | |||||||||||||||
Impact of acquisition | — | — | % | (0.5 | ) | (3.5 | )% | — | — | % | — | — | % | (0.5 | ) | (0.4 | )% | |||||||||||||||||
Impact of currency | (2.7 | ) | (2.7 | )% | (0.1 | ) | (0.7 | )% | — | — | % | 0.2 | 2.8 | % | (2.6 | ) | (2.1 | )% | ||||||||||||||||
Segment Profit - Q4 '17 | $ | 89.9 | (10.3 | )% | $ | 4.7 | (67.1 | )% | $ | 11.4 | 216.7 | % | $ | 5.3 | (25.4 | )% | $ | 111.3 | (11.1 | )% |
Segment Profit (In millions - Unaudited) | ||||||||||||||||||||||||||||||||||
Year Ended September 30, 2017 | ||||||||||||||||||||||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | All Other | Total | ||||||||||||||||||||||||||||||
Segment Profit - FY '16 | $ | 290.2 | $ | 89.5 | $ | 39.1 | $ | 28.4 | $ | 447.2 | ||||||||||||||||||||||||
Organic | 8.3 | 2.9 | % | 10.2 | 11.4 | % | (10.2 | ) | (26.1 | )% | (1.9 | ) | (6.7 | )% | 6.4 | 1.4 | % | |||||||||||||||||
Impact of acquisition | — | — | % | 0.3 | 0.3 | % | — | — | % | — | — | % | 0.3 | 0.1 | % | |||||||||||||||||||
Impact of currency | (3.6 | ) | (1.3 | )% | (1.2 | ) | (1.3 | )% | — | — | % | 0.1 | 0.4 | % | (4.7 | ) | (1.1 | )% | ||||||||||||||||
Segment Profit - FY '17 | $ | 294.9 | 1.6 | % | $ | 98.8 | 10.4 | % | $ | 28.9 | (26.1 | )% | $ | 26.6 | (6.3 | )% | $ | 449.2 | 0.4 | % |
Quarter Ended September 30, | Year Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net (loss) earnings | $ | (148.4 | ) | $ | 52.2 | $ | 5.7 | $ | 178.7 | ||||||
Income tax provision | (104.4 | ) | 11.6 | (58.6 | ) | 41.2 | |||||||||
Interest expense, net (1) | 17.0 | 16.3 | 69.3 | 70.1 | |||||||||||
Depreciation and amortization | 24.6 | 25.1 | 96.2 | 96.5 | |||||||||||
EBITDA | (211.2 | ) | 105.2 | 112.6 | 386.5 | ||||||||||
Impairment charges | 319.0 | 6.5 | 319.0 | 6.5 | |||||||||||
Spin costs | — | — | — | 12.0 | |||||||||||
Restructuring and related costs (2) | 4.2 | 7.7 | 28.5 | 34.9 | |||||||||||
Industrial sale charges | — | — | — | 0.2 | |||||||||||
Adjusted EBITDA | $ | 112.0 | $ | 119.4 | $ | 460.1 | $ | 440.1 |
(1) | Interest expense, net for the quarter and year ended September 30, 2016 includes $1.4 and $0.8, respectively, of net interest income recorded in relation to settlements with tax authorities. |
(2) | Excludes $0.5 and $1.8 of accelerated depreciation for the quarter and year ended September 30, 2017, respectively, and $1.7 and $3.9 for the quarter and year ended September 30, 2016, respectively, which are included within Depreciation and amortization. |
Adjusted EPS Outlook | ||
Fiscal 2018 GAAP EPS | $4.00 - $4.20 | |
Gain on sale of Playtex Gloves business | approx. | $0.29 |
Income taxes | approx. | $(0.09) |
Fiscal 2018 Adjusted EPS Outlook (Non-GAAP) | $3.80 - $4.00 |
Q4 2017 | Days (1) | Q3 2017 | Days (1) | Q4 2016 | Days (1) | |||||||||||||||
Receivables, as reported | $ | 269.1 | $ | 278.2 | $ | 275.2 | ||||||||||||||
Less: Trade allowance in accrued liabilities (2) | (26.0 | ) | (27.3 | ) | (28.1 | ) | ||||||||||||||
Receivables, adjusted | 243.1 | 39 | 250.9 | 39 | 247.1 | 38 | ||||||||||||||
Inventories, as reported | 346.1 | 108 | 339.4 | 105 | 345.3 | 105 | ||||||||||||||
Accounts payable, as reported | 218.4 | 68 | 211.6 | 66 | 211.4 | 64 | ||||||||||||||
Average adjusted working capital (3) | $ | 370.8 | $ | 378.7 | $ | 381.0 | ||||||||||||||
% of net sales (4) | 16.1 | % | 16.2 | % | 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 September 30, 2017, June 30, 2017 and September 30, 2016, 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 |