Missouri | 1-36837 | 36-4802442 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification Number) |
99.1 | Press Release, dated May 4, 2016. |
![]() | Energizer Holdings, Inc. 533 Maryville University Dr. St. Louis, MO 63141 |
FOR IMMEDIATE RELEASE | Company Contact |
May 4, 2016 | Jacqueline Burwitz Investor Relations 314-985-2169 JacquelineE.Burwitz@energizer.com |
• | Reported net sales declined 6.4% while organic net sales were up 0.5% |
• | Diluted EPS was $0.26 compared to a net loss per diluted share of $1.11 in the prior year second quarter, and Adjusted Diluted EPS was $0.30 compared to $0.44 in the prior year second quarter |
• | Increased Full Year Outlook - Adjusted EPS of $2.15 to $2.25 and Adjusted EBITDA of $280 million to $300 million |
• | Full year free cash flow still expected to exceed $150 million |
◦ | Organic net sales increased 0.5% due primarily to distribution and space gains and storm related volumes. These gains were partially offset by the lapping of the EcoAdvanced product launch in the prior year. |
◦ | The following items were offsetting amounts to the organic net sales increase: |
▪ | Unfavorable currency impacts were $15.5 million, or 4.3%; |
▪ | International go-to-market changes, including the exit from certain markets and shift to distributors, resulted in a decline of $3.9 million, or 1.1%; and |
▪ | Change in Venezuela results, due to the deconsolidation, resulted in a decline of $5.4 million, or 1.5%. This will be the last quarter of impact from the deconsolidation which occurred at the end of the prior year second quarter. |
• | Gross Margin percentage was 42.4%, down 480 basis points driven in part by unfavorable currencies, change in Venezuela results and international go-to-market changes. Excluding the impact from these items, gross margin percentage declined 220 basis points driven by higher costs in the quarter due to investments in product improvements and productivity initiatives partially offset by favorable commodity and other product costs. (a) |
• | A&P spending was 5.4% of net sales, a decrease of 290 basis points, or $11.4 million, due to higher prior year spending related to the EcoAdvanced launch and the timing of current year advertising and promotional activities. |
• | SG&A, excluding spin and restructuring costs, was 24.3% of net sales compared to 22.5% in the prior year. The higher percentage comparison versus the prior year quarter reflects the impact of lower reported net sales, incremental investment spending and the timing of overhead spend. (a) |
• | Restructuring related charges were $1.5 million in the second fiscal quarter. (a) |
• | Spin-off and spin restructuring related charges were $1.9 million in the second fiscal quarter. (a) |
• | Pretax income of $21.0 million compared to pre-tax loss of $71.7 million in the prior year quarter. |
• | Income tax rate on a year to date basis was 29.1% due to the favorable impacts from the country mix of earnings. This favorable change in tax rate is included in the current quarter’s results, which is reflected in the disproportionately lower rate of 21.9% in the quarter. |
• | Net earnings per diluted share were $0.26. |
• | Adjusted net earnings per diluted share were $0.30 compared to $0.44 prior year second quarter. (a) |
• | Adjusted EBITDA was $51.4 million. (a) |
• | Net cash from operating activities on a year to date basis was $128.3 million and Free Cash Flow on a year to date basis was $114.8, or 13.7% of net sales. (a) |
• | Dividend payments in the quarter were approximately $15.5 million, or $0.25 per share, and $30.9 million on a year to date basis, or $0.50 per share. |
• | Repurchased 600,000 shares of common stock on a year to date basis for $21.8 million. |
Total Net Sales (In millions - Unaudited) | ||||||||||||||
For the Quarter and Six Months Ended March 31, 2016 | ||||||||||||||
Q2 | % Chg | Six Months | % Chg | |||||||||||
Net Sales - FY'15 | $ | 356.9 | $ | 858.2 | ||||||||||
Organic | 1.9 | 0.5 | % | 49.3 | 5.7 | % | ||||||||
International Go-to-Market | (3.9 | ) | (1.1 | )% | (9.5 | ) | (1.1 | )% | ||||||
Change in Venezuela results | (5.4 | ) | (1.5 | )% | (8.5 | ) | (1.0 | )% | ||||||
Impact of currency | (15.5 | ) | (4.3 | )% | (48.7 | ) | (5.6 | )% | ||||||
Net sales - FY'16 | $ | 334.0 | (6.4 | )% | $ | 840.8 | (2.0 | )% |
• | Increase of approximately 3% related to distribution and space gains; |
• | Decrease of approximately 3% related to the lapping of the EcoAdvanced product launch in the prior year; |
• | Increase of approximately 0.5% primarily related to incremental storm volumes; and |
• | Flat price/mix impact as pricing declines due to heightened competitive activity in our Asia developed markets were offset by net pricing and mix gains in the rest of world. |
Total Segment Profit (In millions - Unaudited) | ||||||||||||||
For the Quarter and Six Months Ended March 31, 2016 | ||||||||||||||
Q2 | % Chg | Six Months | % Chg | |||||||||||
Segment Profit - FY'15 | $ | 80.8 | $ | 213.8 | ||||||||||
Organic | (1.0 | ) | (1.2 | )% | 30.1 | 14.1 | % | |||||||
International Go-to-market | 1.0 | 1.2 | % | 2.6 | 1.2 | % | ||||||||
Change in Venezuela results | (2.0 | ) | (2.5 | )% | (2.5 | ) | (1.2 | )% | ||||||
Impact of currency | (10.4 | ) | (12.8 | )% | (34.4 | ) | (16.1 | )% | ||||||
Segment Profit - FY'16 | $ | 68.4 | (15.3 | )% | $ | 209.6 | (2.0 | )% |
• | Net Sales are expected to be down low single digits: |
◦ | Organic net sales are expected to be up low-single digits; |
◦ | The negative impact of foreign currency movement is now expected to reduce net sales by $60 to $70 million, a slight improvement from our prior outlook; |
◦ | International go-to-market changes are expected to reduce net sales in the low single digits, consistent with the prior outlook; and |
◦ | Change in Venezuela results, due to the previously announced deconsolidation, will reduce net sales by $8.5 million, or 0.5%, consistent with the prior outlook. |
• | Gross Margin rates are expected to decline up to 250 basis points, consistent with the prior outlook, driven in part by unfavorable currency impacts, international go-to-market changes, the impact from the Venezuela deconsolidation and investments in product improvements and productivity initiatives. |
• | SG&A as a percent of net sales, excluding spin related and restructuring costs, is expected to be in the low 20’s, consistent with the prior outlook. |
• | Pre-tax income is expected to be negatively impacted due to the movement in foreign currencies by $50 to $60 million, a slight improvement from our prior outlook. |
• | Income Tax Rate is now expected to be in the range of 29 to 30 percent, a slight improvement from our prior outlook. |
• | Adjusted EBITDA is now expected to be in the range of $280 to $300 million, a slight improvement from our prior outlook, reflecting the impact of improved current currency rates. |
• | Free Cash Flow is expected to exceed $150 million, consistent with the prior outlook. |
• | Spin and restructuring costs are now expected to be in the range of $15 to $20 million in fiscal year 2016. |
• | market and economic conditions; |
• | market trends in the categories in which we compete; |
• | the success of new products and the ability to continually develop and market new products; |
• | our ability to attract, retain and improve distribution with key customers; |
• | our ability to continue planned advertising and other promotional spending; |
• | our ability to timely execute strategic initiatives, including restructurings, and international go-to-market changes in a manner that will positively impact our financial condition and results of operations and does not disrupt our business operations; |
• | the impact of strategic initiatives, including restructurings, on our relationships with employees, customers and vendors; |
• | our ability to maintain and improve market share in the categories in which we operate despite heightened competitive pressure; |
• | our ability to improve operations and realize cost savings; |
• | the impact of foreign currency exchange rates and currency controls, as well as offsetting hedges; |
• | the impact of raw materials and other commodity costs; |
• | costs and reputational damage associated with cyber-attacks or information security breaches or other events; |
• | our ability to acquire and integrate businesses, and to realize the projected results of acquisitions; |
• | the impact of advertising and product liability claims and other litigation; |
• | compliance with debt covenants and maintenance of credit ratings as well as the impact of interest and principal repayment of our existing and any future debt; and |
• | the impact of legislative or regulatory determinations or changes by federal, state and local, and foreign authorities, including taxing authorities. |
For the Quarter ended March 31, | For the Six Months Ended March 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net sales | $ | 334.0 | $ | 356.9 | $ | 840.8 | $ | 858.2 | |||||||
Cost of products sold (2) | 192.4 | 188.4 | 469.4 | 455.9 | |||||||||||
Gross profit | 141.6 | 168.5 | 371.4 | 402.3 | |||||||||||
Selling, general and administrative expense (2) | 83.4 | 103.7 | 167.1 | 214.3 | |||||||||||
Advertising and sales promotion expense | 18.1 | 29.5 | 48.2 | 63.9 | |||||||||||
Research and development expense | 6.4 | 6.4 | 12.5 | 12.6 | |||||||||||
Venezuela deconsolidation charge | — | 65.2 | — | 65.2 | |||||||||||
Spin restructuring | (0.8 | ) | 23.2 | 0.1 | 24.3 | ||||||||||
Restructuring | 0.3 | 0.3 | 2.5 | (9.3 | ) | ||||||||||
Interest expense | 13.1 | 15.2 | 26.0 | 27.7 | |||||||||||
Other financing items, net | 0.1 | (3.3 | ) | (0.5 | ) | (6.1 | ) | ||||||||
Earnings/(loss) before income taxes | 21.0 | (71.7 | ) | 115.5 | 9.7 | ||||||||||
Income taxes provision/(benefit) | 4.6 | (2.5 | ) | 33.6 | 17.2 | ||||||||||
Net earnings/(loss) | $ | 16.4 | $ | (69.2 | ) | $ | 81.9 | $ | (7.5 | ) | |||||
Earnings per share | |||||||||||||||
Basic net earnings/(loss) per share (1) | $ | 0.27 | $ | (1.11 | ) | $ | 1.32 | $ | (0.12 | ) | |||||
Diluted net earnings/(loss) per share (1) | $ | 0.26 | $ | (1.11 | ) | $ | 1.31 | $ | (0.12 | ) | |||||
Weighted average shares of common stock - Basic (1) | 61.8 | 62.2 | 62.0 | 62.2 | |||||||||||
Weighted average shares of common stock - Diluted (1) | 62.3 | 62.2 | 62.4 | 62.2 |
Assets | March 31, 2016 | September 30, 2015 | |||||
Current assets | |||||||
Cash and cash equivalents | $ | 576.3 | $ | 502.1 | |||
Trade receivables, less allowance for doubtful accounts | 131.0 | 155.5 | |||||
Inventories | 218.0 | 275.9 | |||||
Other current assets | 118.1 | 143.4 | |||||
Total current assets | $ | 1,043.4 | $ | 1,076.9 | |||
Property, plant and equipment, net | 202.5 | 205.6 | |||||
Goodwill | 37.5 | 38.1 | |||||
Other intangible assets | 77.7 | 76.3 | |||||
Deferred tax asset | 163.8 | 163.1 | |||||
Other assets | 59.5 | 58.6 | |||||
Total assets | $ | 1,584.4 | $ | 1,618.6 | |||
Liabilities and Shareholders' Deficit | |||||||
Current liabilities | |||||||
Current maturities of long-term debt | $ | 4.0 | $ | 3.0 | |||
Note payable | 9.9 | 5.2 | |||||
Accounts payable | 147.1 | 167.0 | |||||
Other current liabilities | 239.2 | 291.2 | |||||
Total current liabilities | $ | 400.2 | $ | 466.4 | |||
Long-term debt | 983.0 | 984.3 | |||||
Other liabilities | 211.4 | 228.0 | |||||
Total liabilities | $ | 1,594.6 | $ | 1,678.7 | |||
Shareholders' deficit | |||||||
Common stock | 0.6 | 0.6 | |||||
Additional paid-in capital | 188.7 | 181.7 | |||||
Retained earnings | 57.1 | 6.9 | |||||
Treasury stock | (21.3 | ) | — | ||||
Accumulated other comprehensive loss | $ | (235.3 | ) | $ | (249.3 | ) | |
Total shareholders' deficit | (10.2 | ) | (60.1 | ) | |||
Total liabilities and shareholders' deficit | $ | 1,584.4 | $ | 1,618.6 |
For The Six Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Cash Flow from Operating Activities | |||||||
Net earnings/(loss) | $ | 81.9 | $ | (7.5 | ) | ||
Non-cash restructuring costs | 4.4 | 2.6 | |||||
Depreciation and amortization | 15.6 | 22.3 | |||||
Venezuela deconsolidation charge | — | 65.2 | |||||
Deferred income taxes | 1.2 | 5.3 | |||||
Share-based payments | 10.7 | 5.4 | |||||
Non-cash items included in income, net | 0.4 | (1.7 | ) | ||||
Other, net | (18.2 | ) | (16.6 | ) | |||
Changes in current assets and liabilities used in operations | 32.3 | 51.9 | |||||
Net cash from operating activities | 128.3 | 126.9 | |||||
Cash Flow from Investing Activities | |||||||
Capital expenditures | (14.2 | ) | (18.0 | ) | |||
Proceeds from sale of assets | 0.7 | 13.5 | |||||
Acquisitions, net of cash acquired | — | (11.1 | ) | ||||
Net cash used by investing activities | (13.5 | ) | (15.6 | ) | |||
Cash Flow from Financing Activities | |||||||
Payments on debt with maturities greater than 90 days | (1.0 | ) | — | ||||
Net increase in debt with original maturities of 90 days or less | 4.7 | — | |||||
Dividends paid | (30.9 | ) | — | ||||
Common stock purchased | (21.8 | ) | — | ||||
Taxes paid for withheld share-based payments | (4.1 | ) | — | ||||
Excess tax benefits from share-based payments | 0.8 | — | |||||
Net transfers to Edgewell | — | (110.0 | ) | ||||
Net cash used by financing activities | (52.3 | ) | (110.0 | ) | |||
Effect of exchange rate changes on cash | 11.7 | (0.8 | ) | ||||
Net increase in cash and cash equivalents | 74.2 | 0.5 | |||||
Cash and cash equivalents, beginning of period | 502.1 | 89.6 | |||||
Cash and cash equivalents, end of period | $ | 576.3 | $ | 90.1 |
Quarter Ended March 31, | Six Months Ended March 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net Sales | |||||||||||||||
North America | $ | 168.8 | $ | 169.6 | $ | 448.0 | $ | 421.0 | |||||||
Latin America | 26.1 | 33.8 | 60.6 | 72.1 | |||||||||||
EMEA | 76.3 | 79.2 | 194.2 | 205.1 | |||||||||||
Asia Pacific | 62.8 | 74.3 | 138.0 | 160.0 | |||||||||||
Total net sales | $ | 334.0 | $ | 356.9 | $ | 840.8 | $ | 858.2 | |||||||
Segment Profit | |||||||||||||||
North America | $ | 41.1 | $ | 45.8 | $ | 131.9 | $ | 116.7 | |||||||
Latin America | 4.6 | 5.3 | 12.5 | 10.0 | |||||||||||
EMEA | 8.2 | 9.6 | 31.2 | 44.0 | |||||||||||
Asia Pacific | 14.5 | 20.1 | 34.0 | 43.1 | |||||||||||
Total segment profit | $ | 68.4 | $ | 80.8 | $ | 209.6 | $ | 213.8 | |||||||
General corporate and other expenses | $ | (21.3 | ) | $ | (15.9 | ) | $ | (37.2 | ) | $ | (33.2 | ) | |||
Global marketing expense | (3.1 | ) | (6.1 | ) | (5.3 | ) | (10.4 | ) | |||||||
Research and development expense | (6.4 | ) | (6.4 | ) | (12.5 | ) | (12.6 | ) | |||||||
Venezuela deconsolidation charge | — | (65.2 | ) | — | (65.2 | ) | |||||||||
Restructuring (1) | (1.5 | ) | (0.3 | ) | (4.8 | ) | 9.2 | ||||||||
Integration (1) | — | (0.5 | ) | — | (0.9 | ) | |||||||||
Spin costs (1) | (2.7 | ) | (23.0 | ) | (8.7 | ) | (45.1 | ) | |||||||
Spin restructuring | 0.8 | (23.2 | ) | (0.1 | ) | (24.3 | ) | ||||||||
Interest expense | (13.1 | ) | (15.2 | ) | (26.0 | ) | (27.7 | ) | |||||||
Other financing items, net | (0.1 | ) | 3.3 | 0.5 | 6.1 | ||||||||||
Total earnings/(loss) before income taxes | $ | 21.0 | $ | (71.7 | ) | $ | 115.5 | $ | 9.7 |
Quarter Ended March 31, | Six Months Ended March 31, | ||||||||||||||
Net Sales | 2016 | 2015 | 2016 | 2015 | |||||||||||
Alkaline batteries | $ | 199.2 | $ | 224.4 | $ | 540.2 | $ | 552.3 | |||||||
Other batteries and lighting products | 134.8 | 132.5 | 300.6 | 305.9 | |||||||||||
Total net sales | $ | 334.0 | $ | 356.9 | $ | 840.8 | $ | 858.2 |
For the Quarter Ended March 31, | ||||||||||||||||||||||||
(in millions, except per share data) | Earnings/(Loss) Before Income Taxes | Net Earnings/(Loss) | Diluted EPS | |||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||
Reported - GAAP | $ | 21.0 | $ | (71.7 | ) | $ | 16.4 | $ | (69.2 | ) | $ | 0.26 | $ | (1.11 | ) | |||||||||
Impacts: Expense (Income) | ||||||||||||||||||||||||
Venezuela deconsolidation charge | — | 65.2 | — | 65.2 | — | 1.05 | ||||||||||||||||||
Spin costs (1) | 2.7 | 23.0 | 1.8 | 15.2 | 0.03 | 0.24 | ||||||||||||||||||
Spin restructuring | (0.8 | ) | 23.2 | (0.6 | ) | 15.6 | — | 0.25 | ||||||||||||||||
Restructuring (1) | 1.5 | 0.3 | 0.9 | 0.3 | 0.01 | — | ||||||||||||||||||
Integration (1) | — | 0.5 | — | 0.4 | — | 0.01 | ||||||||||||||||||
Adjusted - Non-GAAP | $ | 24.4 | $ | 40.5 | $ | 18.5 | $ | 27.5 | $ | 0.30 | $ | 0.44 | ||||||||||||
Weighted average shares - Diluted (2) | 62.3 | 62.2 |
For the Six Months Ended March 31, | ||||||||||||||||||||||||
(in millions, except per share data) | Earnings/(Loss) Before Income Taxes | Net Earnings/(Loss) | Diluted EPS | |||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||
Reported - GAAP | $ | 115.5 | $ | 9.7 | $ | 81.9 | $ | (7.5 | ) | $ | 1.31 | $ | (0.12 | ) | ||||||||||
Impacts: Expense (Income) | ||||||||||||||||||||||||
Venezuela deconsolidation charge | — | 65.2 | — | 65.2 | — | 1.05 | ||||||||||||||||||
Spin costs (1) | 8.7 | 45.1 | 5.7 | 29.8 | 0.09 | 0.48 | ||||||||||||||||||
Spin restructuring | 0.1 | 24.3 | 0.2 | 16.3 | 0.01 | 0.26 | ||||||||||||||||||
Restructuring (1) | 4.8 | (9.2 | ) | 3.0 | (5.8 | ) | 0.05 | (0.10 | ) | |||||||||||||||
Integration (1) | — | 0.9 | — | 0.7 | — | 0.01 | ||||||||||||||||||
Adjusted - Non-GAAP | $ | 129.1 | $ | 136.0 | $ | 90.8 | $ | 98.7 | $ | 1.46 | $ | 1.58 | ||||||||||||
Weighted average shares - Diluted (2) | 62.4 | 62.2 |
Net Sales | ||||||||||||||||||
Q1'16 | % Chg | Q2'16 | % Chg | Six Months '16 | % Chg | |||||||||||||
North America | ||||||||||||||||||
Net sales - prior year | $ | 251.4 | $ | 169.6 | $ | 421.0 | ||||||||||||
Organic | 31.5 | 12.5 | % | 0.2 | 0.1 | % | 31.7 | 7.5 | % | |||||||||
Impact of currency | (3.7 | ) | (1.4 | )% | (1.0 | ) | (0.6 | )% | (4.7 | ) | (1.1 | )% | ||||||
Net sales - current year | $ | 279.2 | 11.1 | % | $ | 168.8 | (0.5 | )% | $ | 448.0 | 6.4 | % | ||||||
Latin America | ||||||||||||||||||
Net sales - prior year | $ | 38.3 | $ | 33.8 | $ | 72.1 | ||||||||||||
Organic | 4.6 | 12.0 | % | 4.0 | 11.8 | % | 8.6 | 11.9 | % | |||||||||
Int'l Go-to-Market | 0.1 | 0.3 | % | (0.4 | ) | (1.2 | )% | (0.3 | ) | (0.4 | )% | |||||||
Change in Venezuela results | (3.1 | ) | (8.1 | )% | (5.4 | ) | (16.0 | )% | (8.5 | ) | (11.8 | )% | ||||||
Impact of currency | (5.4 | ) | (14.1 | )% | (5.9 | ) | (17.4 | )% | (11.3 | ) | (15.7 | )% | ||||||
Net sales - current year | $ | 34.5 | (9.9 | )% | $ | 26.1 | (22.8 | )% | $ | 60.6 | (16.0 | )% | ||||||
EMEA | ||||||||||||||||||
Net sales - prior year | $ | 125.9 | $ | 79.2 | $ | 205.1 | ||||||||||||
Organic | 9.9 | 7.9 | % | 2.6 | 3.3 | % | 12.5 | 6.1 | % | |||||||||
Int'l Go-to-Market | (2.2 | ) | (1.7 | )% | (1.1 | ) | (1.4 | )% | (3.3 | ) | (1.6 | )% | ||||||
Impact of currency | (15.7 | ) | (12.6 | )% | (4.4 | ) | (5.6 | )% | (20.1 | ) | (9.8 | )% | ||||||
Net sales - current year | $ | 117.9 | (6.4 | )% | $ | 76.3 | (3.7 | )% | $ | 194.2 | (5.3 | )% | ||||||
Asia Pacific | ||||||||||||||||||
Net sales - prior year | $ | 85.7 | $ | 74.3 | $ | 160.0 | ||||||||||||
Organic | 1.4 | 1.6 | % | (4.9 | ) | (6.6 | )% | (3.5 | ) | (2.2 | )% | |||||||
Int'l Go-to-Market | (3.5 | ) | (4.1 | )% | (2.4 | ) | (3.2 | )% | (5.9 | ) | (3.7 | )% | ||||||
Impact of currency | (8.4 | ) | (9.8 | )% | (4.2 | ) | (5.7 | )% | (12.6 | ) | (7.9 | )% | ||||||
Net sales - current year | $ | 75.2 | (12.3 | )% | $ | 62.8 | (15.5 | )% | $ | 138.0 | (13.8 | )% | ||||||
Total Net Sales | ||||||||||||||||||
Net sales - prior year | $ | 501.3 | $ | 356.9 | $ | 858.2 | ||||||||||||
Organic | 47.4 | 9.5 | % | 1.9 | 0.5 | % | 49.3 | 5.7 | % | |||||||||
Int'l Go-to-Market | (5.6 | ) | (1.1 | )% | (3.9 | ) | (1.1 | )% | (9.5 | ) | (1.1 | )% | ||||||
Change in Venezuela results | (3.1 | ) | (0.6 | )% | (5.4 | ) | (1.5 | )% | (8.5 | ) | (1.0 | )% | ||||||
Impact of currency | (33.2 | ) | (6.7 | )% | (15.5 | ) | (4.3 | )% | (48.7 | ) | (5.6 | )% | ||||||
Net sales - current year | $ | 506.8 | 1.1 | % | $ | 334.0 | (6.4 | )% | $ | 840.8 | (2.0 | )% |
Segment Profit | ||||||||||||||||||
Q1'16 | % Chg | Q2'16 | % Chg | Six Months '16 | % Chg | |||||||||||||
North America | ||||||||||||||||||
Segment Profit - prior year | $ | 70.9 | $ | 45.8 | $ | 116.7 | ||||||||||||
Organic | 22.6 | 31.9 | % | (4.1 | ) | (9.0 | )% | 18.5 | 15.9 | % | ||||||||
Impact of currency | (2.7 | ) | (3.8 | )% | (0.6 | ) | (1.3 | )% | (3.3 | ) | (2.9 | )% | ||||||
Segment Profit - current year | $ | 90.8 | 28.1 | % | $ | 41.1 | (10.3 | )% | $ | 131.9 | 13.0 | % | ||||||
Latin America | ||||||||||||||||||
Segment Profit - prior year | $ | 4.7 | $ | 5.3 | $ | 10.0 | ||||||||||||
Organic | 5.8 | 123.4 | % | 4.1 | 77.4 | % | 9.9 | 99.0 | % | |||||||||
Int'l Go-to-Market | 1.5 | 31.9 | % | 1.1 | 20.8 | % | 2.6 | 26.0 | % | |||||||||
Change in Venezuela results | (0.5 | ) | (10.6 | )% | (2.0 | ) | (37.7 | )% | (2.5 | ) | (25.0 | )% | ||||||
Impact of currency | (3.6 | ) | (76.6 | )% | (3.9 | ) | (73.7 | )% | (7.5 | ) | (75.0 | )% | ||||||
Segment Profit - current year | $ | 7.9 | 68.1 | % | $ | 4.6 | (13.2 | )% | $ | 12.5 | 25.0 | % | ||||||
EMEA | ||||||||||||||||||
Segment Profit - prior year | $ | 34.4 | $ | 9.6 | $ | 44.0 | ||||||||||||
Organic | 0.5 | 1.5 | % | 1.9 | 19.8 | % | 2.4 | 5.5 | % | |||||||||
Int'l Go-to-Market | (0.8 | ) | (2.3 | )% | (0.4 | ) | (4.2 | )% | (1.2 | ) | (2.7 | )% | ||||||
Impact of currency | (11.1 | ) | (32.3 | )% | (2.9 | ) | (30.2 | )% | (14.0 | ) | (31.9 | )% | ||||||
Segment Profit - current year | $ | 23.0 | (33.1 | )% | $ | 8.2 | (14.6 | )% | $ | 31.2 | (29.1 | )% | ||||||
Asia Pacific | ||||||||||||||||||
Segment Profit - prior year | $ | 23.0 | $ | 20.1 | $ | 43.1 | ||||||||||||
Organic | 2.2 | 9.6 | % | (2.9 | ) | (14.4 | )% | (0.7 | ) | (1.6 | )% | |||||||
Int'l Go-to-Market | 0.9 | 3.9 | % | 0.3 | 1.5 | % | 1.2 | 2.8 | % | |||||||||
Impact of currency | (6.6 | ) | (28.7 | )% | (3.0 | ) | (15.0 | )% | (9.6 | ) | (22.3 | )% | ||||||
Segment Profit - current year | $ | 19.5 | (15.2 | )% | $ | 14.5 | (27.9 | )% | $ | 34.0 | (21.1 | )% | ||||||
Total Segment Profit | ||||||||||||||||||
Segment Profit - prior year | $ | 133.0 | $ | 80.8 | $ | 213.8 | ||||||||||||
Organic | 31.1 | 23.4 | % | (1.0 | ) | (1.2 | )% | 30.1 | 14.1 | % | ||||||||
Int'l Go-to-Market | 1.6 | 1.2 | % | 1.0 | 1.2 | % | 2.6 | 1.2 | % | |||||||||
Change in Venezuela results | (0.5 | ) | (0.4 | )% | (2.0 | ) | (2.5 | )% | (2.5 | ) | (1.2 | )% | ||||||
Impact of currency | (24.0 | ) | (18.0 | )% | (10.4 | ) | (12.8 | )% | (34.4 | ) | (16.1 | )% | ||||||
Segment Profit - current year | $ | 141.2 | 6.2 | % | $ | 68.4 | (15.3 | )% | $ | 209.6 | (2.0 | )% |
Quarter Ended March 31, 2016 | % of Sales | |||||||||||||||||||||||||
Sales | GM | A&P | R&D | SG&A | Sales | GM | A&P | R&D | SG&A | |||||||||||||||||
FY'15 - GAAP | $ | 356.9 | $ | 168.5 | $ | 29.5 | $ | 6.4 | $ | 103.7 | ||||||||||||||||
Adjustments (1) | — | — | — | — | (23.5 | ) | ||||||||||||||||||||
FY'15 - Adj. GAAP | $ | 356.9 | $ | 168.5 | $ | 29.5 | $ | 6.4 | $ | 80.2 | ||||||||||||||||
47.2 | % | 8.3 | % | 1.8 | % | 22.5 | % | |||||||||||||||||||
Impact of currency | $ | (15.5 | ) | $ | (13.5 | ) | $ | (0.6 | ) | $ | — | $ | (4.5 | ) | (4.3 | )% | (1.8 | )% | 0.2 | % | 0.1 | % | (0.3 | )% | ||
Change in Venezuela results | (5.4 | ) | (3.7 | ) | (0.1 | ) | — | (1.7 | ) | (1.5 | )% | (0.3 | )% | 0.1 | % | — | % | (0.1 | )% | |||||||
Int'l Go-to-Market | (3.9 | ) | (1.8 | ) | (0.4 | ) | — | (2.4 | ) | (1.1 | )% | — | % | — | % | — | % | (0.4 | )% | |||||||
Organic | 1.9 | (6.2 | ) | (10.3 | ) | — | 9.6 | 0.5 | % | (2.0 | )% | (2.9 | )% | — | % | 2.6 | % | |||||||||
Other | (0.2 | )% | (0.3 | )% | ||||||||||||||||||||||
FY'16 - Adj. GAAP | $ | 334.0 | $ | 143.3 | $ | 18.1 | $ | 6.4 | $ | 81.2 | ||||||||||||||||
% of Sales | 42.9 | % | 5.4 | % | 1.9 | % | 24.3 | % | ||||||||||||||||||
Adjustments (2) | — | (1.7 | ) | — | — | 2.2 | ||||||||||||||||||||
FY'16 - GAAP | $ | 334.0 | $ | 141.6 | $ | 18.1 | $ | 6.4 | $ | 83.4 |
Six Months Ended March 31, 2016 | % of Sales | |||||||||||||||||||||||||
Sales | GM | A&P | R&D | SG&A | Sales | GM | A&P | R&D | SG&A | |||||||||||||||||
FY'15 - GAAP | $ | 858.2 | $ | 402.3 | $ | 63.9 | $ | 12.6 | $ | 214.3 | ||||||||||||||||
Adjustments (1) | — | — | — | — | (46.1 | ) | ||||||||||||||||||||
FY'15 - Adj. GAAP | $ | 858.2 | $ | 402.3 | $ | 63.9 | $ | 12.6 | $ | 168.2 | ||||||||||||||||
46.9 | % | 7.4 | % | 1.5 | % | 19.6 | % | |||||||||||||||||||
Impact of currency | $ | (48.7 | ) | $ | (43.5 | ) | $ | (2.2 | ) | $ | — | $ | (7.8 | ) | (5.6 | )% | (2.6 | )% | 0.2 | % | — | % | 0.2 | % | ||
Change in Venezuela results | (8.5 | ) | (6.1 | ) | (0.2 | ) | — | (3.5 | ) | (1.0 | )% | (0.2 | )% | 0.1 | % | — | % | (0.2 | )% | |||||||
Int'l Go-to-Market | (9.5 | ) | (4.8 | ) | (1.0 | ) | — | (6.4 | ) | (1.1 | )% | — | % | — | % | — | % | (0.5 | )% | |||||||
Organic | 49.3 | 26.3 | (12.3 | ) | (0.1 | ) | 8.4 | 5.7 | % | 0.4 | % | (1.8 | )% | — | % | (0.1 | )% | |||||||||
Other | (0.2 | )% | (0.1 | )% | ||||||||||||||||||||||
FY'16 - Adj. GAAP | $ | 840.8 | $ | 374.2 | $ | 48.2 | $ | 12.5 | $ | 158.9 | ||||||||||||||||
% of Sales | 44.5 | % | 5.7 | % | 1.5 | % | 18.9 | % | ||||||||||||||||||
Adjustments (2) | — | (2.8 | ) | — | — | 8.2 | ||||||||||||||||||||
FY'16 - GAAP | $ | 840.8 | $ | 371.4 | $ | 48.2 | $ | 12.5 | $ | 167.1 |
Q2'16 | Q1'16 | Q4'15 | Q3'15 | LTM 03/31/16 | Q2'15 | ||||||||||||||||||
Net Income/(Loss) | $ | 16.4 | $ | 65.5 | $ | 23.1 | $ | (19.6 | ) | $ | 85.4 | $ | (69.2 | ) | |||||||||
Income Tax Expense/(Benefit) | 4.6 | 29.0 | 7.0 | (20.9 | ) | 19.7 | (2.5 | ) | |||||||||||||||
Earnings/(loss) before taxes | $ | 21.0 | $ | 94.5 | $ | 30.1 | $ | (40.5 | ) | $ | 105.1 | $ | (71.7 | ) | |||||||||
Interest (2) | 13.1 | 12.9 | 12.7 | 37.5 | 76.2 | 15.2 | |||||||||||||||||
Depreciation & Amortization | 7.8 | 7.8 | 8.6 | 10.9 | 35.1 | 11.6 | |||||||||||||||||
EBITDA | $ | 41.9 | $ | 115.2 | $ | 51.4 | $ | 7.9 | $ | 216.4 | $ | (44.9 | ) | ||||||||||
Adjustments: | |||||||||||||||||||||||
Restructuring | $ | 1.5 | $ | 3.3 | $ | 2.8 | $ | 19.4 | $ | 27.0 | $ | 0.3 | |||||||||||
Spin costs | 2.7 | 6.0 | 15.2 | 37.8 | 61.7 | 23.0 | |||||||||||||||||
Spin Restructuring | (0.8 | ) | 0.9 | 3.1 | 11.7 | 14.9 | 23.2 | ||||||||||||||||
Venezuela Deconsolidation | — | — | — | — | — | 65.2 | |||||||||||||||||
Share-based payments | 6.1 | 4.6 | 3.9 | 1.8 | 16.4 | 2.2 | |||||||||||||||||
Adjusted EBITDA | $ | 51.4 | $ | 130.0 | $ | 76.4 | $ | 78.6 | $ | 336.4 | $ | 69.0 |
For The Six Months Ended March 31, 2016 | ||||
Net cash from operating activities | $ | 128.3 | ||
Capital expenditures | (14.2 | ) | ||
Proceeds from sale of assets | 0.7 | |||
Free Cash Flow | $ | 114.8 |
Q1'16 | Q2'16 | Q1'15 | Q2'15 | Q2'16 YTD | Q2'15 YTD | ||||||||||||||||
Sales | $ | 506.8 | $ | 334.0 | $ | 501.3 | $ | 356.9 | $ | 840.8 | $ | 858.2 | |||||||||
Cost of products sold - adjusted | 275.9 | 190.7 | 267.5 | 188.4 | 466.6 | 455.9 | |||||||||||||||
Gross profit - adjusted | 230.9 | 143.3 | 233.8 | 168.5 | 374.2 | 402.3 | |||||||||||||||
% of Net Sales | 45.6 | % | 42.9 | % | 46.6 | % | 47.2 | % | 44.5 | % | 46.9 | % | |||||||||
SG&A (Segment) | 59.2 | 57.3 | 67.1 | 59.8 | 116.5 | 126.9 | |||||||||||||||
SG&A (Corporate) | 16.6 | 21.3 | 17.4 | 15.8 | 37.9 | 33.2 | |||||||||||||||
SG&A (Global Marketing) | 1.9 | 2.6 | 3.5 | 4.6 | 4.5 | 8.1 | |||||||||||||||
Subtotal - SG&A - adjusted | 77.7 | 81.2 | 88.0 | 80.2 | 158.9 | 168.2 | |||||||||||||||
% of Sales | 15.3 | % | 24.3 | % | 17.6 | % | 22.5 | % | 18.9 | % | 19.6 | % | |||||||||
Advertising and sales promotion expense (Segment) | 29.8 | 17.6 | 33.6 | 28.0 | 47.4 | 61.6 | |||||||||||||||
Advertising and sales promotion expense (Global) | 0.3 | 0.5 | 0.8 | 1.5 | 0.8 | 2.3 | |||||||||||||||
Subtotal - A&P | 30.1 | 18.1 | 34.4 | 29.5 | 48.2 | 63.9 | |||||||||||||||
% of Sales | 5.9 | % | 5.4 | % | 6.9 | % | 8.3 | % | 5.7 | % | 7.4 | % | |||||||||
Research and development expense | 6.1 | 6.4 | 6.2 | 6.4 | 12.5 | 12.6 | |||||||||||||||
% of Sales | 1.2 | % | 1.9 | % | 1.2 | % | 1.8 | % | 1.5 | % | 1.5 | % | |||||||||
Interest Expense | 12.9 | 13.1 | 12.5 | 15.2 | 26.0 | 27.7 | |||||||||||||||
Other financing items, net | (0.6 | ) | 0.1 | (2.8 | ) | (3.3 | ) | (0.5 | ) | (6.1 | ) | ||||||||||
Restructuring | 2.2 | 0.3 | (9.6 | ) | 0.3 | 2.5 | (9.3 | ) | |||||||||||||
Restructuring (COGS) | 1.1 | 1.2 | — | — | 2.3 | — | |||||||||||||||
Restructuring (SG&A) | — | — | 0.1 | — | — | 0.1 | |||||||||||||||
Integration (SG&A) | — | — | 0.4 | 0.5 | — | 0.9 | |||||||||||||||
Spin (COGS) | — | 0.5 | — | — | 0.5 | — | |||||||||||||||
Spin (SG&A) | 6.0 | 2.2 | 22.1 | 23.0 | 8.2 | 45.1 | |||||||||||||||
Spin restructuring | 0.9 | (0.8 | ) | 1.1 | 23.2 | 0.1 | 24.3 | ||||||||||||||
Venezuela deconsolidation | — | — | — | 65.2 | — | 65.2 | |||||||||||||||
Earnings before income taxes | 94.5 | 21.0 | 81.4 | (71.7 | ) | 115.5 | 9.7 | ||||||||||||||
Income Taxes | 29.0 | 4.6 | 19.7 | (2.5 | ) | 33.6 | 17.2 | ||||||||||||||
NET EARNINGS | $ | 65.5 | $ | 16.4 | $ | 61.7 | $ | (69.2 | ) | $ | 81.9 | $ | (7.5 | ) |
Cost of products sold | Q1'16 | Q2'16 | Q1'15 | Q2'15 | Q2'16 YTD | Q2'15 YTD | |||||||||||||||
Cost of products sold - adjusted | $ | 275.9 | $ | 190.7 | $ | 267.5 | $ | 188.4 | $ | 466.6 | $ | 455.9 | |||||||||
Restructuring | 1.1 | 1.2 | — | — | 2.3 | — | |||||||||||||||
Spin | — | 0.5 | — | — | 0.5 | — | |||||||||||||||
Cost of products sold - reported | $ | 277.0 | $ | 192.4 | $ | 267.5 | $ | 188.4 | $ | 469.4 | $ | 455.9 | |||||||||
Reported Gross Profit | $ | 229.8 | $ | 141.6 | $ | 233.8 | $ | 168.5 | $ | 371.4 | $ | 402.3 | |||||||||
Reported % of Net Sales | 45.3 | % | 42.4 | % | 46.6 | % | 47.2 | % | 44.2 | % | 46.9 | % | |||||||||
SG&A | Q1'16 | Q2'16 | Q1'15 | Q2'15 | Q2'16 YTD | Q2'15 YTD | |||||||||||||||
Segment SG&A | $ | 59.2 | $ | 57.3 | $ | 67.1 | $ | 59.8 | $ | 116.5 | $ | 126.9 | |||||||||
Corporate SG&A | 16.6 | 21.3 | 17.4 | 15.8 | 37.9 | 33.2 | |||||||||||||||
Global Marketing | 1.9 | 2.6 | 3.5 | 4.6 | 4.5 | 8.1 | |||||||||||||||
Restructuring | — | — | 0.1 | — | — | 0.1 | |||||||||||||||
Integration | — | — | 0.4 | 0.5 | — | 0.9 | |||||||||||||||
Spin | 6.0 | 2.2 | 22.1 | 23.0 | 8.2 | 45.1 | |||||||||||||||
Reported SG&A | $ | 83.7 | $ | 83.4 | $ | 110.6 | $ | 103.7 | $ | 167.1 | $ | 214.3 | |||||||||
Reported % of Net Sales | 16.5 | % | 25.0 | % | 22.1 | % | 29.1 | % | 19.9 | % | 25.0 | % | |||||||||
Restructuring | Q1'16 | Q2'16 | Q1'15 | Q2'15 | Q2'16 YTD | Q2'15 YTD | |||||||||||||||
Restructuring | $ | 2.2 | $ | 0.3 | $ | (9.6 | ) | $ | 0.3 | $ | 2.5 | $ | (9.3 | ) | |||||||
Restructuring (SG&A) | — | — | 0.1 | — | — | 0.1 | |||||||||||||||
Restructuring (COGS) | 1.1 | 1.2 | — | — | 2.3 | — | |||||||||||||||
Restructuring - subtotal | $ | 3.3 | $ | 1.5 | $ | (9.5 | ) | $ | 0.3 | $ | 4.8 | $ | (9.2 | ) | |||||||
Spin | Q1'16 | Q2'16 | Q1'15 | Q2'15 | Q2'16 YTD | Q2'15 YTD | |||||||||||||||
Spin (SG&A) | $ | 6.0 | $ | 2.2 | $ | 22.1 | $ | 23.0 | $ | 8.2 | $ | 45.1 | |||||||||
Spin (COGS) | — | 0.5 | — | — | 0.5 | — | |||||||||||||||
Spin restructuring | 0.9 | (0.8 | ) | 1.1 | 23.2 | 0.1 | 24.3 | ||||||||||||||
Spin - subtotal | $ | 6.9 | $ | 1.9 | $ | 23.2 | $ | 46.2 | $ | 8.8 | $ | 69.4 |