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 were $608.1 million in the second quarter of fiscal 2018, a decrease of 0.5% when compared to the prior year period on a reported basis, and down 3.4% 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 $1.20 for the second quarter as compared to $1.14 in the prior year quarter. Adjusted EPS were $1.31 for the second quarter, compared to $1.21 in the prior year quarter. |
• | Completed the acquisition of Jack Black, L.L.C, a leading U.S. men's prestige skincare company. |
• | Launched "Project Fuel," an enterprise-wide initiative designed to transform the Company's business and cost structure, deliver substantial cost savings, increase agility and provide the capabilities and financial resources needed to drive growth and shareholder value. |
• | Project Fuel is expected to deliver an estimated $225 million in gross cost savings over the fiscal year 2019 to 2021 time horizon. |
• | 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 six months ended March 31, 2018, the impact of acquisitions includes net sales and segment profit activity for Jack Black which was acquired in March 2018. For the six months ended March 31, 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 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 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 Jack Black acquisition and integration costs, restructuring charges, the sale of the Playtex gloves business, |
• | Adjusted effective tax rate is defined as the effective tax rate excluding items such as 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 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. |
• | 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 March 31, | Six Months Ended March 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net sales | $ | 608.1 | $ | 611.0 | $ | 1,076.4 | $ | 1,096.0 | |||||||
Cost of products sold | 306.0 | 301.4 | 574.0 | 558.4 | |||||||||||
Gross profit | 302.1 | 309.6 | 502.4 | 537.6 | |||||||||||
Selling, general and administrative expense | 103.5 | 103.9 | 200.7 | 197.7 | |||||||||||
Advertising and sales promotion expense | 75.6 | 82.5 | 124.6 | 133.1 | |||||||||||
Research and development expense | 15.5 | 17.5 | 31.6 | 33.8 | |||||||||||
Restructuring charges | 3.7 | 5.5 | 3.7 | 12.4 | |||||||||||
Gain on sale of Playtex gloves | — | — | (15.9 | ) | — | ||||||||||
Interest expense associated with debt | 18.2 | 17.3 | 36.0 | 34.7 | |||||||||||
Other (income) expense, net | (0.2 | ) | (6.6 | ) | 2.8 | (8.5 | ) | ||||||||
Earnings before income taxes | 85.8 | 89.5 | 118.9 | 134.4 | |||||||||||
Income tax provision | 20.7 | 23.8 | 47.1 | 35.2 | |||||||||||
Net earnings | $ | 65.1 | $ | 65.7 | $ | 71.8 | $ | 99.2 | |||||||
Earnings per share: | |||||||||||||||
Basic net earnings per share | $ | 1.21 | $ | 1.14 | $ | 1.31 | $ | 1.72 | |||||||
Diluted net earnings per diluted share | 1.20 | 1.14 | 1.31 | 1.72 | |||||||||||
Weighted-average shares outstanding: | |||||||||||||||
Basic | 54.0 | 57.4 | 54.7 | 57.5 | |||||||||||
Diluted | 54.1 | 57.7 | 54.9 | 57.8 |
Assets | March 31, 2018 | September 30, 2017 | |||||
Current assets | |||||||
Cash and cash equivalents | $ | 243.6 | $ | 502.9 | |||
Trade receivables, less allowance for doubtful accounts | 258.3 | 224.1 | |||||
Inventories | 369.7 | 333.5 | |||||
Other current assets | 132.8 | 125.7 | |||||
Total current assets | 1,004.4 | 1,186.2 | |||||
Property, plant and equipment, net | 437.1 | 453.4 | |||||
Goodwill | 1,487.5 | 1,445.9 | |||||
Other intangible assets, net | 1,114.1 | 1,071.7 | |||||
Other assets | 36.1 | 31.6 | |||||
Total assets | $ | 4,079.2 | $ | 4,188.8 | |||
Liabilities and Shareholders' Equity | |||||||
Current liabilities | |||||||
Notes payable | 21.6 | 19.4 | |||||
Accounts payable | 247.4 | 223.6 | |||||
Other current liabilities | 282.9 | 281.4 | |||||
Total current liabilities | 551.9 | 524.4 | |||||
Long-term debt | 1,404.1 | 1,525.4 | |||||
Deferred income tax liabilities | 151.3 | 181.8 | |||||
Other liabilities | 240.7 | 215.5 | |||||
Total liabilities | 2,348.0 | 2,447.1 | |||||
Shareholders' equity | |||||||
Preferred shares | — | — | |||||
Common shares | 0.7 | 0.7 | |||||
Additional paid-in capital | 1,625.2 | 1,623.4 | |||||
Retained earnings | 1,034.3 | 952.9 | |||||
Common shares in treasury at cost | (822.7 | ) | (703.9 | ) | |||
Accumulated other comprehensive loss | (106.3 | ) | (131.4 | ) | |||
Total shareholders' equity | 1,731.2 | 1,741.7 | |||||
Total liabilities and shareholders' equity | $ | 4,079.2 | $ | 4,188.8 |
Six Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Cash Flow from Operating Activities | |||||||
Net earnings | $ | 71.8 | $ | 99.2 | |||
Non-cash restructuring costs | — | 2.8 | |||||
Depreciation and amortization | 49.2 | 46.9 | |||||
Share-based compensation expense | 9.3 | 11.4 | |||||
(Gain) / loss on sale of assets | (13.6 | ) | 3.9 | ||||
Deferred compensation payments | (9.1 | ) | (25.7 | ) | |||
Deferred income taxes | (22.5 | ) | (2.8 | ) | |||
Other, net | (4.9 | ) | (12.2 | ) | |||
Changes in operating assets and liabilities | (6.8 | ) | (108.4 | ) | |||
Net cash from operating activities | 73.4 | 15.1 | |||||
Cash Flow from Investing Activities | |||||||
Capital expenditures | (27.6 | ) | (30.4 | ) | |||
Acquisitions, net of cash acquired | (90.3 | ) | (34.0 | ) | |||
Playtex gloves sale | 19.0 | — | |||||
Proceeds from sale of assets | 4.7 | 5.9 | |||||
Net cash used by investing activities | (94.2 | ) | (58.5 | ) | |||
Cash Flow from Financing Activities | |||||||
Cash proceeds from debt with original maturities greater than 90 days | 305.0 | 181.0 | |||||
Cash payments on debt with original maturities greater than 90 days | (427.0 | ) | (393.0 | ) | |||
Net (decrease) increase in debt with original maturities of 90 days or less | (1.2 | ) | 1.2 | ||||
Common shares purchased | (124.4 | ) | (58.5 | ) | |||
Employee shares withheld for taxes | (2.1 | ) | (15.5 | ) | |||
Excess tax benefits from share-based payments | — | 2.0 | |||||
Net cash used by financing activities | (249.7 | ) | (282.8 | ) | |||
Effect of exchange rate changes on cash | 11.2 | (9.8 | ) | ||||
Net decrease in cash and cash equivalents | (259.3 | ) | (336.0 | ) | |||
Cash and cash equivalents, beginning of period | 502.9 | 738.9 | |||||
Cash and cash equivalents, end of period | $ | 243.6 | $ | 402.9 |
Quarter Ended March 31, | Six Months Ended March 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net Sales | |||||||||||||||
Wet Shave | $ | 345.2 | $ | 342.6 | $ | 639.3 | $ | 648.8 | |||||||
Sun and Skin Care | 152.3 | 150.6 | 211.4 | 208.2 | |||||||||||
Feminine Care | 80.3 | 83.2 | 162.9 | 172.3 | |||||||||||
All Other | 30.3 | 34.6 | 62.8 | 66.7 | |||||||||||
Total net sales | $ | 608.1 | $ | 611.0 | $ | 1,076.4 | $ | 1,096.0 | |||||||
Segment Profit | |||||||||||||||
Wet Shave | $ | 69.8 | $ | 73.2 | $ | 124.5 | $ | 145.2 | |||||||
Sun and Skin Care | 48.9 | 50.9 | 42.8 | 51.7 | |||||||||||
Feminine Care | 10.1 | 1.6 | 15.1 | 9.9 | |||||||||||
All Other | 4.3 | 7.7 | 11.5 | 14.6 | |||||||||||
Total segment profit | 133.1 | 133.4 | 193.9 | 221.4 | |||||||||||
General corporate and other expenses | (18.8 | ) | (23.5 | ) | (37.2 | ) | (39.9 | ) | |||||||
Jack Black acquisition and integration costs | (2.6 | ) | — | (2.6 | ) | — | |||||||||
Restructuring and related costs (1) | (3.7 | ) | (5.6 | ) | (3.7 | ) | (12.8 | ) | |||||||
Gain on sale of Playtex gloves | — | — | 15.9 | — | |||||||||||
Amortization of intangibles | (4.2 | ) | (4.1 | ) | (8.6 | ) | (8.1 | ) | |||||||
Interest and other expense, net | (18.0 | ) | (10.7 | ) | (38.8 | ) | (26.2 | ) | |||||||
Total earnings before income taxes | $ | 85.8 | $ | 89.5 | $ | 118.9 | $ | 134.4 |
(1) | Includes Cost of products sold of $0.1 and $0.4 for the second quarter and first six 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 March 31, | |||||||||||||||
Net Earnings | Diluted EPS | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net Earnings and Diluted EPS - GAAP (Unaudited) | $ | 65.1 | $ | 65.7 | $ | 1.20 | $ | 1.14 | |||||||
Jack Black acquisition and integration costs | 2.6 | — | 0.05 | — | |||||||||||
Restructuring and related costs, net(1) | 3.7 | 5.6 | 0.07 | 0.10 | |||||||||||
Income taxes(2) | (0.5 | ) | (1.7 | ) | (0.01 | ) | (0.03 | ) | |||||||
Adjusted Net Earnings and Adjusted Diluted EPS - Non-GAAP | $ | 70.9 | $ | 69.6 | $ | 1.31 | $ | 1.21 | |||||||
Weighted-average shares outstanding - Diluted | 54.1 | 57.7 |
(1) | Includes Cost of products sold of $0.1 for the second quarter 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 $1.2 in Income tax expense for the second quarter of fiscal 2018 in addition to the tax impact of the other adjustments to Net Earnings and Diluted EPS - GAAP. |
Six Months Ended March 31, | |||||||||||||||
Net Earnings | Diluted EPS | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net Earnings and Diluted EPS - GAAP (Unaudited) | $ | 71.8 | $ | 99.2 | $ | 1.31 | $ | 1.72 | |||||||
Jack Black acquisition and integration costs | 2.6 | 0.05 | — | ||||||||||||
Restructuring and related costs(1) | 3.7 | 12.8 | 0.07 | 0.22 | |||||||||||
Gain on sale of Playtex gloves | (15.9 | ) | — | (0.29 | ) | — | |||||||||
Income taxes(2) | 20.0 | (4.0 | ) | 0.36 | (0.07 | ) | |||||||||
Adjusted Net Earnings and Adjusted Diluted EPS - Non-GAAP | $ | 82.2 | $ | 108.0 | $ | 1.50 | $ | 1.87 | |||||||
Weighted-average shares outstanding - Diluted | 54.9 | 57.8 |
(1) | Includes Cost of products sold of $0.4 for the first six 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 six months of fiscal 2018 in addition to the tax impact of the other adjustments to Net Earnings and Diluted EPS - GAAP. |
Quarter Ended March 31, 2018 | |||||||||||||||||||
Gross Profit | SG&A | EBIT (1) | Net Earnings | Diluted EPS | |||||||||||||||
GAAP - Reported | $ | 302.1 | $ | 103.5 | $ | 85.8 | $ | 65.1 | $ | 1.20 | |||||||||
% of net sales | 49.7 | % | 17.0 | % | |||||||||||||||
Jack Black acquisition and integration costs | — | 2.6 | 2.6 | 1.9 | 0.04 | ||||||||||||||
Restructuring and related costs | — | — | 3.7 | 2.7 | 0.05 | ||||||||||||||
Income tax reform | — | — | — | 1.2 | 0.02 | ||||||||||||||
Total Adjusted Non-GAAP | $ | 302.1 | $ | 100.9 | $ | 92.1 | $ | 70.9 | $ | 1.31 | |||||||||
% of net sales | 49.7 | % | 16.6 | % |
Six Months Ended March 31, 2018 | |||||||||||||||||||
Gross Profit | SG&A | EBIT (1) | Net Earnings | Diluted EPS | |||||||||||||||
GAAP - Reported | $ | 502.4 | $ | 200.7 | $ | 118.9 | $ | 71.8 | $ | 1.31 | |||||||||
% of net sales | 46.7 | % | 18.6 | % | |||||||||||||||
Jack Black acquisition and integration costs | — | 2.6 | 2.6 | 1.9 | 0.03 | ||||||||||||||
Restructuring and related costs | — | — | 3.7 | 2.7 | 0.05 | ||||||||||||||
Gain on sale of Playtex gloves | — | — | (15.9 | ) | (11.6 | ) | (0.21 | ) | |||||||||||
Income tax reform | — | — | — | 17.4 | 0.32 | ||||||||||||||
Total Adjusted Non-GAAP | $ | 502.4 | $ | 198.1 | $ | 109.3 | $ | 82.2 | $ | 1.50 | |||||||||
% of net sales | 46.7 | % | 18.4 | % |
Quarter Ended March 31, 2017 | |||||||||||||||||||
Gross Profit | SG&A | EBIT (1) | Net Earnings | Diluted EPS | |||||||||||||||
GAAP - Reported | $ | 309.6 | $ | 103.9 | $ | 89.5 | $ | 65.7 | $ | 1.14 | |||||||||
% of net sales | 50.7 | % | 17.0 | % | |||||||||||||||
Restructuring and related charges (2) | 0.1 | — | 5.6 | 3.9 | 0.07 | ||||||||||||||
Total Adjusted Non-GAAP | $ | 309.7 | $ | 103.9 | $ | 95.1 | $ | 69.6 | $ | 1.21 | |||||||||
% of net sales | 50.7 | % | 17.0 | % |
Six Months Ended March 31, 2017 | |||||||||||||||||||
Gross Profit | SG&A | EBIT (1) | Net Earnings | Diluted EPS | |||||||||||||||
GAAP - Reported | $ | 537.6 | $ | 197.7 | $ | 134.4 | $ | 99.2 | $ | 1.72 | |||||||||
% of net sales | 49.1 | % | 18.0 | % | |||||||||||||||
Restructuring and related charges (2) | 0.4 | — | 12.8 | 8.8 | 0.15 | ||||||||||||||
Total Adjusted Non-GAAP | $ | 538.0 | $ | 197.7 | $ | 147.2 | $ | 108.0 | $ | 1.87 | |||||||||
% of net sales | 49.1 | % | 18.0 | % |
(1) | EBIT is defined as Earnings before income taxes. |
(2) | Includes Cost of products sold of $0.1 and $0.4 for the second quarter and first six 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 March 31, | Six Months Ended March 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Earnings before income taxes | $ | 85.8 | $ | 89.5 | $ | 118.9 | $ | 134.4 | |||||||
Jack Black acquisition and integration costs | 2.6 | — | 2.6 | — | |||||||||||
Restructuring and related charges (1) | 3.7 | 5.6 | 3.7 | 12.8 | |||||||||||
Gain on sale of Playtex gloves | — | — | (15.9 | ) | — | ||||||||||
Interest expense associated with debt | 18.2 | 17.3 | 36.0 | 34.7 | |||||||||||
Other income, net | (0.2 | ) | (6.6 | ) | 2.8 | (8.5 | ) | ||||||||
Adjusted operating income | $ | 110.1 | $ | 105.8 | $ | 148.1 | $ | 173.4 | |||||||
% of net sales | 18.1 | % | 17.3 | % | 13.8 | % | 15.8 | % |
(1) | Includes Cost of products sold of $0.1 and $0.4 for the second quarter and first six 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. |
Six Months Ended March 31, 2018 | Six Months Ended March 31, 2017 | ||||||||||||||||||||||
Reported | Adjustments (1) | Adjusted (Non-GAAP) | Reported | Adjustments (1) | Adjusted (Non-GAAP) | ||||||||||||||||||
Earnings before income taxes | $ | 118.9 | $ | (9.6 | ) | $ | 109.3 | $ | 134.4 | $ | 12.8 | $ | 147.2 | ||||||||||
Income tax provision | 47.1 | (20.0 | ) | 27.1 | 35.2 | 4.0 | 39.2 | ||||||||||||||||
Net earnings | $ | 71.8 | $ | 10.4 | $ | 82.2 | $ | 99.2 | $ | 8.8 | $ | 108.0 | |||||||||||
Effective tax rate | 39.7 | % | 26.2 | % | |||||||||||||||||||
Adjusted effective tax rate | 24.8 | % | 26.6 | % |
(1) | Includes adjustments for 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 March 31, 2018 | ||||||||||||||||||||||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | All Other | Total | ||||||||||||||||||||||||||||||
Net Sales - Q2 '17 | $ | 342.6 | $ | 150.6 | $ | 83.2 | $ | 34.6 | $ | 611.0 | ||||||||||||||||||||||||
Organic | (13.6 | ) | (4.0 | )% | 0.5 | 0.3 | % | (3.2 | ) | (3.8 | )% | (4.5 | ) | (13.0 | )% | (20.8 | ) | (3.4 | )% | |||||||||||||||
Impact of disposition | — | — | % | (3.8 | ) | (2.5 | )% | — | — | % | — | — | % | (3.8 | ) | (0.6 | )% | |||||||||||||||||
Impact of acquisitions | — | — | % | 2.4 | 1.6 | % | — | — | % | — | — | % | 2.4 | 0.4 | % | |||||||||||||||||||
Impact of currency | 16.2 | 4.8 | % | 2.6 | 1.7 | % | 0.3 | 0.3 | % | 0.2 | 0.6 | % | 19.3 | 3.1 | % | |||||||||||||||||||
Net Sales - Q2 '18 | $ | 345.2 | 0.8 | % | $ | 152.3 | 1.1 | % | $ | 80.3 | (3.5 | )% | $ | 30.3 | (12.4 | )% | $ | 608.1 | (0.5 | )% |
Net Sales | ||||||||||||||||||||||||||||||||||
Six Months Ended March 31, 2018 | ||||||||||||||||||||||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | All Other | Total | ||||||||||||||||||||||||||||||
Net Sales - FY '17 | $ | 648.8 | $ | 208.2 | $ | 172.3 | $ | 66.7 | $ | 1,096.0 | ||||||||||||||||||||||||
Organic | (33.3 | ) | (5.1 | )% | 2.0 | 1.0 | % | (10.0 | ) | (5.8 | )% | (4.5 | ) | (6.7 | )% | (45.8 | ) | (4.2 | )% | |||||||||||||||
Impact of disposition | — | — | % | (7.0 | ) | (3.4 | )% | — | — | % | — | — | % | (7.0 | ) | (0.6 | )% | |||||||||||||||||
Impact of acquisitions | — | — | % | 4.7 | 2.3 | % | — | — | % | — | — | % | 4.7 | 0.4 | % | |||||||||||||||||||
Impact of currency | 23.8 | 3.6 | % | 3.5 | 1.6 | % | 0.6 | 0.3 | % | 0.6 | 0.9 | % | 28.5 | 2.6 | % | |||||||||||||||||||
Net Sales - FY '18 | $ | 639.3 | (1.5 | )% | $ | 211.4 | 1.5 | % | $ | 162.9 | (5.5 | )% | $ | 62.8 | (5.8 | )% | $ | 1,076.4 | (1.8 | )% |
Segment Profit | ||||||||||||||||||||||||||||||||||
Quarter Ended March 31, 2018 | ||||||||||||||||||||||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | All Other | Total | ||||||||||||||||||||||||||||||
Segment Profit - Q2 '17 | $ | 73.2 | $ | 50.9 | $ | 1.6 | $ | 7.7 | $ | 133.4 | ||||||||||||||||||||||||
Organic | (7.9 | ) | (10.8 | )% | (2.1 | ) | (4.1 | )% | 8.3 | 518.8 | % | (3.6 | ) | (46.8 | )% | (5.3 | ) | (4.0 | )% | |||||||||||||||
Impact of disposition | — | — | % | (1.3 | ) | (2.6 | )% | — | — | % | — | — | % | (1.3 | ) | (1.0 | )% | |||||||||||||||||
Impact of acquisitions | — | — | % | 0.6 | 1.2 | % | — | — | % | — | — | % | 0.6 | 0.4 | % | |||||||||||||||||||
Impact of currency | 4.5 | 6.2 | % | 0.8 | 1.6 | % | 0.2 | 12.5 | % | 0.2 | 2.6 | % | 5.7 | 4.4 | % | |||||||||||||||||||
Segment Profit - Q2 '18 | $ | 69.8 | (4.6 | )% | $ | 48.9 | (3.9 | )% | $ | 10.1 | 531.3 | % | $ | 4.3 | (44.2 | )% | $ | 133.1 | (0.2 | )% |
Segment Profit | ||||||||||||||||||||||||||||||||||
Six Months Ended March 31, 2018 | ||||||||||||||||||||||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | All Other | Total | ||||||||||||||||||||||||||||||
Segment Profit - FY '17 | $ | 145.2 | $ | 51.7 | $ | 9.9 | $ | 14.6 | $ | 221.4 | ||||||||||||||||||||||||
Organic | (26.9 | ) | (18.5 | )% | (6.7 | ) | (13.0 | )% | 4.8 | 48.5 | % | (3.5 | ) | (24.0 | )% | (32.3 | ) | (14.6 | )% | |||||||||||||||
Impact of disposition | — | — | % | (2.3 | ) | (4.4 | )% | — | — | % | — | — | % | (2.3 | ) | (1.0 | )% | |||||||||||||||||
Impact of acquisitions | — | — | % | (0.7 | ) | (1.4 | )% | — | — | % | — | — | % | (0.7 | ) | (0.3 | )% | |||||||||||||||||
Impact of currency | 6.2 | 4.2 | % | 0.8 | 1.6 | % | 0.4 | 4.0 | % | 0.4 | 2.7 | % | 7.8 | 3.5 | % | |||||||||||||||||||
Segment Profit - FY '18 | $ | 124.5 | (14.3 | )% | $ | 42.8 | (17.2 | )% | $ | 15.1 | 52.5 | % | $ | 11.5 | (21.3 | )% | $ | 193.9 | (12.4 | )% |
Quarter Ended March 31, | Six Months Ended March 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net earnings | $ | 65.1 | $ | 65.7 | $ | 71.8 | $ | 99.2 | |||||||
Income tax provision | 20.7 | 23.8 | 47.1 | 35.2 | |||||||||||
Interest expense, net | 18.4 | 17.5 | 36.1 | 34.7 | |||||||||||
Depreciation and amortization | 24.4 | 24.6 | 49.2 | 49.1 | |||||||||||
EBITDA | 128.6 | 131.6 | 204.2 | 218.2 | |||||||||||
Jack Black acquisition and integration costs | 2.6 | — | 2.6 | — | |||||||||||
Restructuring and related costs (1) | 3.7 | 4.5 | 3.7 | 10.6 | |||||||||||
Gain on sale of Playtex gloves business | — | — | (15.9 | ) | — | ||||||||||
Adjusted EBITDA | $ | 134.9 | $ | 136.1 | $ | 194.6 | $ | 228.8 |
(1) | Excludes $1.1 and $2.2 of accelerated depreciation for the second quarter and first six months of fiscal 2017, respectively, which are included within Depreciation and amortization. |
Adjusted EPS Outlook | ||
Fiscal 2018 GAAP EPS | $2.70 - $2.90 | |
Jack Black acquisition and integration costs | approx. | $0.07 |
Restructuring charges | approx. | $0.73 |
Gain on sale of Playtex gloves business | approx. | $(0.29) |
Impact of tax reform - net transition tax | approx. | $0.32 |
Income tax, unusual items | approx. | $(0.13) |
Fiscal 2018 Adjusted EPS Outlook (Non-GAAP) | $3.40 - $3.60 |
Q2 2018 | Days (1) | Q1 2018 | Days (1) | Q4 2017 | Days (1) | |||||||||||||||
Receivables, as reported | $ | 244.6 | $ | 257.8 | $ | 269.1 | ||||||||||||||
Less: Trade allowance in accrued liabilities (2) | (25.0 | ) | (25.2 | ) | (26.0 | ) | ||||||||||||||
Receivables, adjusted | 219.6 | 35 | 232.6 | 37 | 243.1 | 39 | ||||||||||||||
Inventories, as reported | 348.9 | 108 | 348.1 | 108 | 346.1 | 108 | ||||||||||||||
Accounts payable, as reported | 226.7 | 70 | 222.8 | 69 | 218.4 | 68 | ||||||||||||||
Average adjusted working capital (3) | $ | 341.8 | $ | 357.9 | $ | 370.8 | ||||||||||||||
% of net sales (4) | 15.0 | % | 15.7 | % | 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 March 31, 2018, December 31, 2017 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 |