EX-99.1 2 exhibit991fy23-q2earningsr.htm EX-99.1 Document

Exhibit 99.1


Prestige Consumer Healthcare Inc. Reports Second Quarter Results and Reaffirms Outlook for Fiscal 2023

◦Record Revenue of $289.3 Million in Q2 fiscal 2023 increased 4.7% versus Prior Year and 5.5% excluding Currency
◦Diluted EPS of $1.02 for Q2, ahead of expectations
◦Reduced Debt by $35 million in Q2 and Achieved Leverage Ratio of 3.7x
◦Reaffirming Full-Year Fiscal 2023 Revenue and Earnings Outlooks

TARRYTOWN, N.Y.--(GLOBE NEWSWIRE)-November 3, 2022-- Prestige Consumer Healthcare Inc. (NYSE:PBH) today reported financial results for its second fiscal quarter ended September 30, 2022.

“Our second quarter organic revenue growth of over 5% and strong earnings performance both exceeded our expectations, thanks to our proven business strategy, strong cash flow and the benefits of our leading portfolio of brands. Additionally, consistent with our strategy for disciplined capital deployment, we enhanced shareholder value by completing our $50 million share repurchase program while further reducing debt in Q2.” said Ron Lombardi, Chief Executive Officer of Prestige Consumer Healthcare.

Second Fiscal Quarter Ended September 30, 2022

Reported revenues in the second quarter of fiscal 2023 of $289.3 million increased 4.7% versus $276.2 million in the second quarter of fiscal 2022. Revenues increased 5.5% excluding the impact of foreign currency. The revenue performance for the quarter was driven by continued strong performance across many of the Company’s key brands and strong International OTC segment performance.

Reported net income for the second quarter of fiscal 2023 totaled $51.0 million, compared to the prior year second quarter’s net income and adjusted net income of $45.3 million and $52.0 million, respectively. Diluted earnings per share of $1.02 for the second quarter of fiscal 2023 compared to GAAP and non-GAAP diluted earnings per share of $0.89 and $1.02 in the prior year comparable period, respectively.

Adjustments to net income in the second quarter of fiscal 2022 included integration, transition, purchase accounting, legal and various other costs associated with the Akorn acquisition, as well as a loss on extinguishment of debt and the related income tax effects of the adjustments.

Six Months Ended September 30, 2022

Reported revenues for the first six months of fiscal 2023 totaled $566.3 million, an increase of 3.8%, compared to revenues of $545.4 million for the first six months of fiscal 2022. Revenues increased 2.2% excluding the impact of foreign currency and a $12.6 million contribution from the acquisition of Akorn in Q1 fiscal 2023. The revenue growth for the first six months was driven by strong International OTC segment performance and improved demand for certain brands, categories and channels that had been impacted by the COVID-19 virus in the first six months of the prior fiscal year.

Reported net income for the first six months of fiscal 2023 totaled $106.3 million versus the prior year comparable period net income and adjusted net income of $103.1 million and $109.8 million, respectively. Diluted earnings per share were $2.11 for the first six months of fiscal 2023 compared to







GAAP and non-GAAP diluted d earnings per share of $2.03 and $2.16 in the prior year comparable period, respectively.

Adjustments to net income in the first six months of fiscal 2022 included integration, transition, purchase accounting, legal and various other costs associated with the Akorn acquisition, as well as a loss on extinguishment of debt and the related income tax effects of the adjustments.

Free Cash Flow and Balance Sheet

The Company's net cash provided by operating activities for second quarter fiscal 2023 was $57.5 million, compared to $61.2 million during the prior year comparable period. Non-GAAP free cash flow in the second quarter of fiscal 2023 was $55.2 million, a decrease compared to $61.9 million in the prior year. The Company's net cash provided by operating activities for the first six months of fiscal 2023 was $115.8 million, compared to $130.5 million during the prior year comparable period. Non-GAAP free cash flow in the first six months of fiscal 2023 was $112.4 million compared to $129.7 million in the prior year comparable period, with the change attributable to the timing of working capital.

In the second quarter fiscal 2023, the Company repurchased approximately 0.2 million shares at a total investment of $12.3 million. In the first six months of fiscal 2023, the Company repurchased approximately 0.9 million shares at a total of $50.0 million and completing its previously authorized share repurchase program.

The Company's net debt position as of September 30, 2022 was approximately $1.4 billion, resulting in a covenant-defined leverage ratio of 3.7x.

Segment Review

North American OTC Healthcare: Segment revenues of $252.1 million for the second quarter fiscal 2023 increased slightly versus the prior year comparable quarter's segment revenues of $251.7 million. The revenue performance for the quarter was driven by continued strong performance across many of our key brands, particularly in the Gastrointestinal and Analgesics categories, compared to the prior year.

For the first six months of the current fiscal year, reported revenues for the North American OTC segment were $494.6 million, an increase compared to $494.1 million in the prior year comparable period. The increase was driven by increased demand for certain brands, categories and channels that had previously been impacted by the COVID-19 virus, most notably cough & cold and motion sickness products and an approximate $12.4 million contribution from the acquisition of Akorn in the first quarter fiscal 2023.

International OTC Healthcare: Record segment fiscal second quarter 2023 revenues of $37.2 million increased 51.9% from $24.5 million reported in the prior year comparable period. The revenue increase versus the prior year second quarter related mainly to an increase in consumer demand for Hydralyte, partially offset by a $1.4 million currency headwind.

For the first six months of the current fiscal year, reported revenues for the International OTC Healthcare segment were $71.8 million, an increase of 39.9% over the prior year comparable period’s revenues of $51.3 million. The increase was driven by similar factors attributable to the second quarter performance, along with a foreign currency headwind of $2.5 million.








Commentary and Updated Outlook for Fiscal 2023

Ron Lombardi, Chief Executive Officer, stated, “We are pleased with our first half fiscal 2023 performance. Our Q2 top-line revenue growth of over 5% excluding currency exceeded our expectations thanks to strong sales performance from the majority of our core brands and strong international segment performance. This resulted in strong cash flows that enabled us to continue investing in our brands, reduce debt, and complete our share repurchase program during the quarter.”

“Following these results, we are reaffirming our fiscal 2023 outlook for revenue and earnings growth. We continue to maintain this growth outlook against a dynamic supply chain and inflationary environment thanks to the makeup of our portfolio and our strong three-pillar business strategy of brand-building, maintaining a strong financial profile, and optimizing capital allocation efficiency,” Mr. Lombardi concluded.
Reaffirmed Fiscal 2023 Outlook
Revenue
$1,120 to 1,130 million
Organic Revenue Growth
2% to 3%
Diluted E.P.S.
$4.18 to $4.23
]
Free Cash Flow
$260 million or more



Fiscal Second Quarter 2023 Conference Call, Accompanying Slide Presentation and Replay

The Company will host a conference call to review its second quarter results today, November 3, 2022 at 8:30 a.m. ET. The Company provides a live Internet webcast, a slide presentation to accompany the call, as well as an archived replay, all of which can be accessed from the Investor Relations page of the Company's website at www.prestigeconsumerhealthcare.com. To participate in the conference call via phone, participants may register for the call here. While not required, it is recommended to join 10 minutes prior to the event start. The slide presentation can be accessed from the Investor Relations page of the website by clicking on Webcasts and Presentations.

A conference call replay will be available for approximately one week following completion of the live call and can be accessed on the Company’s Investor Relations page.

Non-GAAP and Other Financial Information
In addition to financial results reported in accordance with generally accepted accounting principles (GAAP), we have provided certain non-GAAP financial information in this release to aid investors in understanding the Company's performance. Each non-GAAP financial measure is defined and reconciled to its most closely related GAAP financial measure in the “About Non-GAAP Financial Measures” section at the end of this earnings release.

Note Regarding Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of the federal securities laws that are intended to qualify for the Safe Harbor from liability established by the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" generally can be identified by the use of forward-looking terminology such as "guidance," "strategy," "outlook," "projection," “plan,” "may," "will," "would," "expect," "anticipate," "believe”, "consistent," or "continue" (or the negative or other derivatives of each of these terms) or similar terminology. The "forward-looking statements" include,







without limitation, statements regarding the Company's future operating results including revenues, organic growth, diluted earnings per share, and free cash flow, the impact of supply chain issues and inflation on the Company’s performance, the Company’s ability to execute on its brand-building and capital allocation strategy, and the Company’s ability to enhance shareholder value. These statements are based on management's estimates and assumptions with respect to future events and financial performance and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results could differ materially from those expected as a result of a variety of factors, including the impact of business and economic conditions, including as a result of COVID-19 and geopolitical instability, consumer trends, the impact of the Company’s advertising and marketing and new product development initiatives, customer inventory management initiatives, fluctuating foreign exchange rates, competitive pressures, and the ability of the Company’s manufacturing operations and third party manufacturers and logistics providers and suppliers to meet demand for its products and to avoid inflationary cost increases and disruption as a result of labor shortages. A discussion of other factors that could cause results to vary is included in the Company's Annual Report on Form 10-K for the year ended March 31, 2022 and other periodic reports filed with the Securities and Exchange Commission.

About Prestige Consumer Healthcare Inc.
Prestige Consumer Healthcare is a leading consumer healthcare products company with sales throughout the U.S. and Canada, Australia, and in certain other international markets. The Company’s diverse portfolio of brands include Monistat® and Summer’s Eve® women's health products, BC® and Goody's® pain relievers, Clear Eyes® and TheraTears® eye care products, DenTek® specialty oral care products, Dramamine® motion sickness treatments, Fleet® enemas and glycerin suppositories, Chloraseptic® and Luden's® sore throat treatments and drops, Compound W® wart treatments, Little Remedies® pediatric over-the-counter products, Boudreaux’s Butt Paste® diaper rash ointments, Nix® lice treatment, Debrox® earwax remover, Gaviscon® antacid in Canada, and Hydralyte® rehydration products and the Fess® line of nasal and sinus care products in Australia. Visit the Company's website at www.prestigeconsumerhealthcare.com.







Prestige Consumer Healthcare Inc.
Condensed Consolidated Statements of Income and Comprehensive Income
(Unaudited)

 Three Months Ended September 30, Six Months Ended September 30,
(In thousands, except per share data)2022 20212022 2021
Total Revenues$289,273  $276,225 $566,332 $545,406 
Cost of Sales   
Cost of sales excluding depreciation126,384  116,722 241,380  225,057 
Cost of sales depreciation1,880 1,791 3,824 3,625 
Cost of sales128,264 118,513 245,204 228,682 
Gross profit161,009  157,712 321,128  316,724 
Operating Expenses   
Advertising and marketing43,819  40,730 83,770  80,169 
General and administrative26,438  32,252 53,152  54,723 
Depreciation and amortization6,368  6,172 12,808  11,932 
Total operating expenses76,625  79,154 149,730  146,824 
Operating income84,384  78,558 171,398  169,900 
Other expense   
Interest expense, net16,979 16,313 32,271 31,390 
Loss on extinguishment of debt— 2,122 — 2,122 
Other expense, net812 493 1,637 388 
Total other expense, net17,791  18,928 33,908  33,900 
Income before income taxes66,593 59,630 137,490 136,000 
Provision for income taxes15,570  14,305 31,195  32,920 
          Net income $51,023  $45,325 $106,295  $103,080 
Earnings per share:   
Basic$1.02  $0.90 $2.12  $2.05 
Diluted$1.02  $0.89 $2.11  $2.03 
Weighted average shares outstanding:   
Basic49,804  50,232 50,033  50,186 
Diluted50,265  50,791 50,496  50,731 
Comprehensive income, net of tax:
Currency translation adjustments(7,118)(4,197)(16,637)(5,689)
Unrealized gain on interest rate swaps— 550— 1,070 
Net loss on termination of pension plan— — (790)— 
Total other comprehensive loss(7,118)(3,647)(17,427)(4,619)
Comprehensive income$43,905 $41,678 $88,868 $98,461 








Prestige Consumer Healthcare Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
September 30, 2022 March 31, 2022
Assets
Current assets 
Cash and cash equivalents$42,442 $27,185 
Accounts receivable, net of allowance of $20,673 and $19,720, respectively
145,992 139,330 
Inventories140,505 120,342 
Prepaid expenses and other current assets7,714 6,410 
Total current assets336,653  293,267 
Property, plant and equipment, net69,947 71,300 
Operating lease right-of-use assets17,300 20,372 
Finance lease right-of-use assets, net5,529 6,858 
Goodwill575,566 578,976 
Intangible assets, net2,670,942 2,696,635 
Other long-term assets2,577 3,273 
Total Assets$3,678,514  $3,670,681 
Liabilities and Stockholders' Equity   
Current liabilities   
Accounts payable56,196 55,760 
Accrued interest payable15,688 4,437 
Operating lease liabilities, current portion6,647 6,360 
Finance lease liabilities, current portion2,793 2,752 
Other accrued liabilities70,984 74,113 
Total current liabilities152,308  143,422 
Long-term debt, net1,438,338 1,476,658 
Deferred income tax liabilities443,271  444,917 
Long-term operating lease liabilities, net of current portion12,785 16,088 
Long-term finance lease liabilities, net of current portion3,094 4,501 
Other long-term liabilities8,877 7,484 
Total Liabilities2,058,673  2,093,070 
Total Stockholders' Equity1,619,841  1,577,611 
Total Liabilities and Stockholders' Equity$3,678,514  $3,670,681 






















Prestige Consumer Healthcare Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
 Six Months Ended September 30,
(In thousands)2022 2021
Operating Activities 
Net income $106,295 $103,080 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization16,632 15,557 
Loss on disposal of property and equipment94 27 
Deferred income taxes4,211 7,639 
Amortization of debt origination costs1,798 1,435 
Stock-based compensation costs7,323 5,097 
Loss on extinguishment of debt— 2,122 
Non-cash operating lease cost2,984 3,351 
Other447 — 
Changes in operating assets and liabilities, net of effects from acquisition:
Accounts receivable(8,276)(34,322)
Inventories(21,810)12,978 
Prepaid expenses and other current assets(1,501)473 
Accounts payable1,016 (8,275)
Accrued liabilities9,788 24,570 
Operating lease liabilities(3,201)(3,150)
Other(13)(83)
Net cash provided by operating activities115,787  130,499 
Investing Activities   
Purchases of property, plant and equipment(3,423)(4,252)
Acquisition of Akorn— (228,914)
Other— 177 
Net cash used in investing activities(3,423) (232,989)
Financing Activities   
Term loan repayments(40,000)(495,000)
Proceeds from refinancing of Term Loan— 597,000 
Borrowings under revolving credit agreement20,000 85,000 
Repayments under revolving credit agreement(20,000)(65,000)
Payments of debt costs— (6,111)
Payments of finance leases(1,369)(1,496)
Proceeds from exercise of stock options1,489 2,707 
Fair value of shares surrendered as payment of tax withholding(5,450)(2,916)
Repurchase of common stock(50,000)— 
Net cash (used in) provided by financing activities(95,330) 114,184 
Effects of exchange rate changes on cash and cash equivalents(1,777)(1,178)
Increase in cash and cash equivalents15,257  10,516 
Cash and cash equivalents - beginning of period27,185 32,302 
Cash and cash equivalents - end of period$42,442  $42,818 
Interest paid$19,016 $18,481 
Income taxes paid$15,689 $21,141 







Prestige Consumer Healthcare Inc.
Condensed Consolidated Statements of Income
Business Segments
(Unaudited)

 Three Months Ended September 30, 2022
(In thousands)North American OTC
Healthcare		International OTC
Healthcare		Consolidated
Total segment revenues*$252,054 $37,219 $289,273 
Cost of sales113,533 14,731 128,264 
Gross profit138,521 22,488 161,009 
Advertising and marketing39,316 4,503 43,819 
Contribution margin$99,205 $17,985 $117,190 
Other operating expenses 32,806 
Operating income $84,384 
*Intersegment revenues of $1.1 million were eliminated from the North American OTC Healthcare segment.

 Six Months Ended September 30, 2022
(In thousands)North American OTC HealthcareInternational OTC HealthcareConsolidated
Total segment revenues*$494,572 $71,760 $566,332 
Cost of sales216,454 28,750 245,204 
Gross profit278,118 43,010 321,128 
Advertising and marketing74,728 9,042 83,770 
Contribution margin$203,390 $33,968 $237,358 
Other operating expenses 65,960 
Operating income $171,398 
*Intersegment revenues of $1.7 million were eliminated from the North American OTC Healthcare segment.























 Three Months Ended September 30, 2021
(In thousands)North American OTC HealthcareInternational OTC HealthcareConsolidated
Total segment revenues*251,728 24,497 276,225 
Cost of sales108,623 9,890 118,513 
Gross profit 143,105 14,607 157,712 
Advertising and marketing36,493 4,237 40,730 
Contribution margin$106,612 $10,370 $116,982 
Other operating expenses 38,424 
Operating income 78,558 
* Intersegment revenues of $0.7 million were eliminated from the North American OTC Healthcare segment.
 Six Months Ended September 30, 2021
(In thousands)North American OTC HealthcareInternational OTC HealthcareConsolidated
Total segment revenues*$494,121 $51,285 $545,406 
Cost of sales208,027 20,655 228,682 
Gross profit 286,094 30,630 316,724 
Advertising and marketing71,723 8,446 80,169 
Contribution margin$214,371 $22,184 $236,555 
Other operating expenses 66,655 
Operating income $169,900 
* Intersegment revenues of $1.7 million were eliminated from the North American OTC Healthcare segment.









About Non-GAAP Financial Measures
In addition to financial results reported in accordance with GAAP, we disclose certain Non-GAAP financial measures ("NGFMs"), including, but not limited to, Non-GAAP Organic Revenues, Non-GAAP Organic Revenue Change Percentage, Non-GAAP Adjusted Gross Margin, Non-GAAP Adjusted Gross Margin Percentage, Non-GAAP Adjusted General and Administrative Expense, Non-GAAP Adjusted General and Administrative Expense Percentage, Non-GAAP EBITDA, Non-GAAP EBITDA Margin, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted EBITDA Margin, Non-GAAP Adjusted Net Income, Non-GAAP Adjusted Diluted EPS, Non-GAAP Free Cash Flow, Non-GAAP Adjusted Free Cash Flow, and Net Debt.
We use these NGFMs internally, along with GAAP information, in evaluating our operating performance and in making financial and operational decisions. We believe that the presentation of these NGFMs provides investors with greater transparency, and provides a more complete understanding of our business than could be obtained absent these disclosures, because the supplemental data relating to our financial condition and results of operations provides additional ways to view our operation when considered with both our GAAP results and the reconciliations below. In addition, we believe that the presentation of each of these NGFMs is useful to investors for period-to-period comparisons of results in assessing shareholder value, and we use these NGFMs internally to evaluate the performance of our personnel and also to evaluate our operating performance and compare our performance to that of our competitors.
These NGFMs are not in accordance with GAAP, should not be considered as a measure of profitability or liquidity, and may not be directly comparable to similarly titled NGFMs reported by other companies. These NGFMs have limitations and they should not be considered in isolation from or as an alternative to their most closely related GAAP measures reconciled below. Investors should not rely on any single financial measure when evaluating our business. We recommend investors review the GAAP financial measures included in this earnings release. When viewed in conjunction with our GAAP results and the reconciliations below, we believe these NGFMs provide greater transparency and a more complete understanding of factors affecting our business than GAAP measures alone.
NGFMs Defined
We define our NGFMs presented herein as follows:
•Non-GAAP Organic Revenues: GAAP Total Revenues excluding revenues associated with acquisitions where the acquired brands were not included in both periods presented and the impact of foreign currency exchange rates in the periods presented.
•Non-GAAP Organic Revenue Change Percentage: Calculated as the change in Non-GAAP Organic Revenues from prior year divided by prior year Non-GAAP Organic Revenues.
•Non-GAAP Adjusted Gross Margin: GAAP Gross Profit minus inventory step-up charges associated with acquisition.
•Non-GAAP Adjusted Gross Margin Percentage: Calculated as Non-GAAP Adjusted Gross Margin divided by GAAP Total Revenues.
•Non-GAAP Adjusted General and Administrative Expense: GAAP General and Administrative expenses minus costs associated with acquisition.
•Non-GAAP Adjusted General and Administrative Expense Percentage: Calculated as Non-GAAP Adjusted General and Administrative expense divided by GAAP Total Revenues.
•Non-GAAP EBITDA: GAAP Net Income before interest expense, net, provision for income taxes, and depreciation and amortization.
•Non-GAAP EBITDA Margin: Calculated as Non-GAAP EBITDA divided by GAAP Total Revenues.
•Non-GAAP Adjusted EBITDA: Non-GAAP EBITDA less inventory step-up charges associated with acquisition, costs associated with acquisition in general and administrative expenses, and loss on extinguishment of debt.
•Non-GAAP Adjusted EBITDA Margin: Calculated as Non-GAAP adjusted EBITDA divided by GAAP Total Revenues.
•Non-GAAP Adjusted Net Income: GAAP Net Income (Loss) before inventory step-up charges associated with acquisition, costs associated with acquisition in general and administrative expenses, loss on extinguishment of debt, applicable tax impact associated with these items and normalized tax rate adjustment.
•Non-GAAP Adjusted Diluted EPS: Calculated as Non-GAAP Adjusted Net Income, divided by the diluted weighted average number of shares outstanding during the period.
•Non-GAAP Free Cash Flow: Calculated as GAAP Net cash provided by operating activities less cash paid for capital expenditures.
•Non-GAAP Adjusted Free Cash Flow: Calculated as Non-GAAP free cash flow plus cash payments associated with acquisition.
•Net Debt: Calculated as total principal amount of debt outstanding ($1,455,000 at September 30, 2022) less cash and cash equivalents ($42,442 at September 30, 2022). Amounts in thousands.

The following tables set forth the reconciliations of each of our NGFMs (other than Net Debt, which is reconciled above) to their most directly comparable financial measures presented in accordance with GAAP.








Reconciliation of GAAP Total Revenues to Non-GAAP Organic Revenues and related Non-GAAP Organic Revenue Change percentage:
Three Months Ended September 30, Six Months Ended September 30,
2022202120222021
(In thousands)
GAAP Total Revenues$289,273  $276,225 $566,332 $545,406 
Revenue Change4.7 %3.8 %
Adjustments:
Revenues associated with acquisition (1)
— — (12,624)— 
Impact of foreign currency exchange rates— (1,919)— (3,482)
Total adjustments— (1,919)(12,624)(3,482)
Non-GAAP Organic Revenues$289,273 $274,306 $553,708 $541,924 
Non-GAAP Organic Revenue Change5.5 %2.2 %
(1) Revenues of our Akorn acquisition for the three months ended June 30, 2022 are excluded for purposes of calculating Non-GAAP organic revenues.


Reconciliation of GAAP Gross Profit and related GAAP Gross Profit percentage to Non-GAAP Adjusted Gross Margin and related Non-GAAP Adjusted Gross Margin percentage:
Three Months Ended September 30, Six Months Ended September 30,
2022202120222021
(In thousands)
GAAP Total Revenues$289,273  $276,225 $566,332 $545,406 
GAAP Gross Profit$161,009  $157,712 $321,128  $316,724 
GAAP Gross Profit as a Percentage of GAAP Total Revenue55.7 %57.1 %56.7 %58.1 %
Adjustments:
Inventory step-up charges associated with acquisition (1)
— 1,567 — 1,567 
Total adjustments— 1,567 — 1,567 
Non-GAAP Adjusted Gross Margin$161,009 $159,279 $321,128 $318,291 
Non-GAAP Adjusted Gross Margin as a Percentage of GAAP Total Revenues55.7 %57.7 %56.7 %58.4 %
(1) Inventory step-up charges relate to our North American OTC Healthcare segment.
















Reconciliation of GAAP General and Administrative Expense and related GAAP General and Administrative Expense
percentage to Non-GAAP Adjusted General and Administrative Expense and related Non-GAAP Adjusted General and
Administrative Expense percentage:
Three Months Ended September 30, Six Months Ended September 30,
2022202120222021
(In thousands)
GAAP General and Administrative Expense$26,438  $32,252 $53,152  $54,723 
GAAP General and Administrative Expense as a Percentage of GAAP Total Revenue9.1 %11.7 %9.4 %10.0 %
Adjustments:
Costs associated with acquisition (1)
— 5,127 — 5,127 
Total adjustments— 5,127 — 5,127 
Non-GAAP Adjusted General and Administrative Expense$26,438 $27,125 $53,152 $49,596 
Non-GAAP Adjusted General and Administrative Expense Percentage as a Percentage of GAAP Total Revenues9.1 %9.8 %9.4 %9.1 %
(1) Costs related to the consummation of the acquisition process such as insurance costs, legal and other acquisition related professional fees.

Reconciliation of GAAP Net Income to Non-GAAP EBITDA and related Non-GAAP EBITDA Margin, Non-GAAP Adjusted EBITDA and related Non-GAAP Adjusted EBITDA Margin:
Three Months Ended September 30, Six Months Ended September 30,
2022202120222021
(In thousands)
GAAP Net Income $51,023  $45,325 $106,295  $103,080 
Interest expense, net16,979 16,313 32,271 31,390 
Provision for income taxes15,570  14,305 31,195  32,920 
Depreciation and amortization8,248 7,963 16,632 15,557 
Non-GAAP EBITDA$91,820 $83,906 $186,393 $182,947 
Non-GAAP EBITDA Margin31.7 %30.4 %32.9 %33.5 %
Adjustments:
Inventory step-up charges associated with acquisition in Cost of Sales (1)
— 1,567 — 1,567 
Costs associated with acquisition in General and Administrative Expense (2)
— 5,127 — 5,127 
Loss on extinguishment of debt— 2,122 — 2,122 
Total adjustments— 8,816 — 8,816 
Non-GAAP Adjusted EBITDA$91,820 $92,722 $186,393 $191,763 
Non-GAAP Adjusted EBITDA Margin31.7 %33.6 %32.9 %35.2 %
(1) Inventory step-up charges relate to our North American OTC Healthcare segment.
(2) Costs related to the consummation of the acquisition process such as insurance costs, legal and other acquisition related professional fees.
















Reconciliation of GAAP Net Income and Diluted EPS to Non-GAAP Adjusted Net Income and related Non-GAAP Adjusted Diluted
Earnings Per Share:
Three Months Ended September 30, Six Months Ended September 30,
20222022 Diluted EPS20212021 Diluted EPS20222022 Diluted EPS20212021 Diluted EPS
(In thousands, except per share data)
GAAP Net Income and Diluted EPS$51,023 $1.02 $45,325 $0.89 $106,295 $2.11 $103,080 $2.03 
Adjustments:
Inventory step-up charges and other costs associated with
acquisition in Cost of Sales (1)
— — 1,567 0.03 — — 1,567 0.03 
Costs associated with acquisition in General and Administrative Expense (2)
— — 5,127 0.10 — — 5,127 0.10 
Loss on extinguishment of debt— — 2,122 0.04 — — 2,122 0.04 
Tax impact of adjustments (3)
— — (2,115)(0.04)— — (2,134)(0.04)
Total adjustments— — 6,701 0.13 — — 6,682 0.13 
Non-GAAP Adjusted Net Income and Adjusted Diluted EPS$51,023 $1.02 $52,026 $1.02 $106,295 $2.11 $109,762 $2.16 
(1) Inventory step-up charges relate to our North American OTC Healthcare segment.
(2) Costs related to the consummation of the acquisition process such as insurance costs, legal and other acquisition related professional fees.
(3) The income tax adjustments are determined using applicable rates in the taxing jurisdictions in which the above adjustments relate and includes both
current and deferred income tax expense (benefit) based on the specific nature of the specific Non-GAAP performance measure.

Reconciliation of GAAP Net Income to Non-GAAP Free Cash Flow and Non-GAAP Adjusted Free Cash Flow:
Three Months Ended September 30, Six Months Ended September 30,
2022202120222021
(In thousands)
GAAP Net Income $51,023  $45,325 $106,295  $103,080 
Adjustments:
Adjustments to reconcile net income to net cash provided by operating activities as shown in the Statement of Cash Flows17,255 17,404 33,489 35,228 
Changes in operating assets and liabilities as shown in the Statement of Cash Flows(10,738)(1,535)(23,997)(7,809)
Total adjustments6,517 15,869 9,492 27,419 
GAAP Net cash provided by operating activities57,540 61,194 115,787 130,499 
Purchases of property and equipment(2,376)(2,752)(3,423)(4,252)
Non-GAAP Free Cash Flow$55,164 $58,442 $112,364 $126,247 
Payments associated with acquisition (1)
— 3,465 — 3,465 
Non-GAAP Adjusted Free Cash Flow$55,164 $61,907 $112,364 $129,712 
(1) Payments related to the consummation of the acquisition process such as insurance costs, legal and other acquisition related professional fees.
















Outlook for Fiscal Year 2023:
Reconciliation of Projected GAAP Net cash provided by operating activities to Projected Non-GAAP Free Cash Flow:
(In millions)
Projected FY'23 GAAP Net cash provided by operating activities$270 
Additions to property and equipment for cash(10)
Projected FY'23 Non-GAAP Free Cash Flow$260