Missouri | 1-36837 | 36-4802442 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification Number) |
99.1 | Press Release, dated August 3, 2016. |
![]() | Energizer Holdings, Inc. 533 Maryville University Dr. St. Louis, MO 63141 |
FOR IMMEDIATE RELEASE | Company Contact |
August 3, 2016 | Jacqueline Burwitz Investor Relations 314-985-2169 JacquelineE.Burwitz@energizer.com |
• | Reported net sales declined 3.6% while organic net sales were up 1.2% in the third fiscal quarter versus the prior year |
• | Diluted EPS was $0.39 in the third fiscal quarter compared to a net loss per diluted share of $0.32 in the prior year third quarter, and Adjusted Diluted EPS was $0.32 compared to $0.64 in the prior year third quarter |
• | Increased Full Year Outlook to include fourth quarter acquisition impact of HandStands Holding Corporation(HandStands) - Adjusted EPS of $2.20 to $2.30 |
• | Organic net sales increased 1.2% due primarily to the net impact of distribution and space gains in North America and distribution gains and pricing actions in Latin America. These items were partially offset by the anticipated reduction in retail inventory levels and continued heightened competitive activity in certain Asia Pacific Developed markets. |
• | The following items were offsetting amounts to the organic net sales increase: |
▪ | Unfavorable currency impacts were $12.6 million, or 3.4%; and |
▪ | International go-to-market changes, including the exit from certain markets and shift to distributors, resulted in a decline of $5.2 million, or 1.4%. |
• | Gross Margin percentage was 42.6%, down 300 basis points driven in part by an unfavorable movement in currencies. Excluding the impact from currency movements, gross margin percentage declined 150 basis points driven by increased costs in the quarter as a result of costs related to a planned productivity initiative ($5.0 million or 130 basis points) and increased costs in support of innovation launched across our portfolios partially offset by favorable commodity costs and other productivity savings. (a) |
• | A&P spending was 6.3% of net sales, a decrease of 310 basis points, or $12.3 million, due to higher prior year spending related to the EcoAdvanced product launch and the timing of current year advertising and promotional activities. |
• | SG&A spending, excluding acquisition and spin costs, was approximately $81 million on an absolute dollar basis, consistent with prior quarter levels. SG&A, excluding acquisition and spin costs, was 22.4% of net sales compared to 18.6% in the prior year. The higher percentage comparison versus the prior year quarter reflects the impact of a low prior year comparative (based on carve out financial data) and incremental investment spending and higher compensation related costs in the current year. (a) |
• | Spin-off and spin restructuring related charges were $2.8 million in the third fiscal quarter. (a) |
• | Pre-tax income was negatively impacted by the movement in foreign currencies by approximately $11 million in the third fiscal quarter and $45 million through the first nine months of the fiscal year. |
• | Income tax rate on a year to date basis was 23.8% due to the favorable impacts of certain return to provision adjustments related to prior year provision estimates and certain spin related adjustments of approximately $9 million. These favorable adjustments are included in the current quarter’s results and were the primary driver of the $0.5 million tax benefit. Excluding the impact of all of our Non-GAAP adjustments, the effective tax rate on a year to date basis was 30.6%. (a) |
• | Adjusted EBITDA was $56.2 million. (a) |
• | Net cash from operating activities on a year to date basis was $141.9 million and Free Cash Flow on a year to date basis was $125.6 million, or 10.5% of net sales. (a) |
• | Dividend payments in the quarter were approximately $15.5 million, or $0.25 per share, and $46.4 million on a year to date basis, or $0.75 per share. |
• | Repurchased 600,000 shares of common stock on a year to date basis for $21.8 million. There were no shares repurchased during the current quarter. |
Total Net Sales (In millions - Unaudited) | ||||||||||||||
For the Quarter and Nine Months Ended June 30, 2016 | ||||||||||||||
Q3 | % Chg | Nine Months | % Chg | |||||||||||
Net Sales - FY'15 | $ | 374.3 | $ | 1,232.5 | ||||||||||
Organic | 4.5 | 1.2 | % | 53.8 | 4.4 | % | ||||||||
International Go-to-Market | (5.2 | ) | (1.4 | )% | (14.7 | ) | (1.2 | )% | ||||||
Change in Venezuela results | — | — | % | (8.5 | ) | (0.7 | )% | |||||||
Impact of currency | (12.6 | ) | (3.4 | )% | (61.3 | ) | (5.0 | )% | ||||||
Net sales - FY'16 | $ | 361.0 | (3.6 | )% | $ | 1,201.8 | (2.5 | )% |
Total Segment Profit (In millions - Unaudited) | ||||||||||||||
For the Quarter and Nine Months Ended June 30, 2016 | ||||||||||||||
Q3 | % Chg | Nine Months | % Chg | |||||||||||
Segment Profit - FY'15 | $ | 82.7 | $ | 296.5 | ||||||||||
Organic | 1.7 | 2.1 | % | 31.8 | 10.7 | % | ||||||||
International Go-to-market | (0.9 | ) | (1.1 | )% | 1.7 | 0.6 | % | |||||||
Change in Venezuela results | — | — | % | (2.5 | ) | (0.8 | )% | |||||||
Impact of currency | (8.7 | ) | (10.6 | )% | (43.1 | ) | (14.6 | )% | ||||||
Segment Profit - FY'16 | $ | 74.8 | (9.6 | )% | $ | 284.4 | (4.1 | )% |
• | Net Sales are expected to be down low single digits, consistent with the prior outlook: |
◦ | Organic net sales are expected to be up low-single digits, consistent with the prior outlook; |
◦ | The negative impact of foreign currency movement is expected to reduce net sales by $60 to $70 million, consistent with the 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, the impact from the Venezuela deconsolidation and costs of planned productivity initiatives and increased costs in support of innovation across our portfolios. |
• | SG&A as a percent of net sales, excluding integration and acquisition costs, spin related costs 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, consistent with the prior outlook. |
• | Income Tax Rate, excluding our Non-GAAP adjustments, is expected to be in the range of 29 to 30 percent, consistent with the prior outlook. |
• | Adjusted EBITDA is expected to be in the range of $280 million to $300 million, consistent with the prior outlook. |
• | 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 $17 to $20 million in fiscal year 2016. |
• | Accretive to Adjusted EPS in the range of $0.04 to $0.05 for the fourth fiscal quarter of 2016. |
• | Total acquisition and integration related costs associated with the HandStands acquisition are expected to be in the range of $30 million to $35 million. We expect to incur these costs over the next 12 to 15 months. We expect to incur approximately $17 million to $19 million in the fourth fiscal quarter of 2016. |
◦ | Total acquisition related costs are estimated to be in the range of $8 million to $10 million; |
◦ | Total integration related costs are estimated to be in the range of $14 million to $16 million; and |
◦ | Non-cash inventory step-up accounting adjustment is estimated to be in the range of $8 million to $9 million. |
• | market and economic conditions, including the impact of the United Kingdom's referendum vote and announced intention to exit the European Union at some future date; |
• | the ability to integrate the HandStands business successfully and to achieve the anticipated cost savings and other synergies; |
• | the possibility that other anticipated benefits of the HandStands acquisition will not be realized, including without limitation, anticipated revenues, expenses, margins, cash flows, earnings and other financial results, and growth and expansion of our operations; |
• | 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 June 30, | For the Nine Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net sales | $ | 361.0 | $ | 374.3 | $ | 1,201.8 | $ | 1,232.5 | |||||||
Cost of products sold (2) | 207.3 | 203.5 | 676.7 | 659.4 | |||||||||||
Gross profit | 153.7 | 170.8 | 525.1 | 573.1 | |||||||||||
Selling, general and administrative expense (2) | 87.0 | 108.2 | 254.1 | 322.5 | |||||||||||
Advertising and sales promotion expense | 22.8 | 35.1 | 71.0 | 99.0 | |||||||||||
Research and development expense | 6.6 | 6.5 | 19.1 | 19.1 | |||||||||||
Venezuela deconsolidation charge | — | — | — | 65.2 | |||||||||||
Spin restructuring | 0.9 | 11.7 | 1.0 | 36.0 | |||||||||||
Restructuring | — | 18.1 | 2.5 | 8.8 | |||||||||||
Interest expense (3) | 13.1 | 37.5 | 39.1 | 65.2 | |||||||||||
Other financing items, net | (0.4 | ) | (5.8 | ) | (0.9 | ) | (11.9 | ) | |||||||
Earnings/(loss) before income taxes | 23.7 | (40.5 | ) | 139.2 | (30.8 | ) | |||||||||
Income taxes (benefit)/provision | (0.5 | ) | (20.9 | ) | 33.1 | (3.7 | ) | ||||||||
Net earnings/(loss) | $ | 24.2 | $ | (19.6 | ) | $ | 106.1 | $ | (27.1 | ) | |||||
Earnings per share | |||||||||||||||
Basic net earnings/(loss) per share (1) | $ | 0.39 | $ | (0.32 | ) | $ | 1.71 | $ | (0.44 | ) | |||||
Diluted net earnings/(loss) per share (1) | $ | 0.39 | $ | (0.32 | ) | $ | 1.70 | $ | (0.44 | ) | |||||
Weighted average shares of common stock - Basic (1) | 61.8 | 62.2 | 61.9 | 62.2 | |||||||||||
Weighted average shares of common stock - Diluted (1) | 62.7 | 62.2 | 62.5 | 62.2 |
Assets | June 30, 2016 | September 30, 2015 | |||||
Current assets | |||||||
Cash and cash equivalents | $ | 567.1 | $ | 502.1 | |||
Trade receivables, less allowance for doubtful accounts | 145.2 | 155.5 | |||||
Inventories | 231.9 | 275.9 | |||||
Other current assets | 118.3 | 143.4 | |||||
Total current assets | $ | 1,062.5 | $ | 1,076.9 | |||
Property, plant and equipment, net | 197.2 | 205.6 | |||||
Goodwill | 36.8 | 38.1 | |||||
Other intangible assets | 77.5 | 76.3 | |||||
Deferred tax asset | 162.9 | 163.1 | |||||
Other assets | 59.9 | 58.6 | |||||
Total assets | $ | 1,596.8 | $ | 1,618.6 | |||
Liabilities and Shareholders' Deficit | |||||||
Current liabilities | |||||||
Current maturities of long-term debt | $ | 4.0 | $ | 3.0 | |||
Note payable | 9.3 | 5.2 | |||||
Accounts payable | 161.5 | 167.0 | |||||
Other current liabilities | 232.0 | 291.2 | |||||
Total current liabilities | $ | 406.8 | $ | 466.4 | |||
Long-term debt | 982.4 | 984.3 | |||||
Other liabilities | 210.4 | 228.0 | |||||
Total liabilities | $ | 1,599.6 | $ | 1,678.7 | |||
Shareholders' deficit | |||||||
Common stock | 0.6 | 0.6 | |||||
Additional paid-in capital | 193.3 | 181.7 | |||||
Retained earnings | 65.3 | 6.9 | |||||
Treasury stock | (21.4 | ) | — | ||||
Accumulated other comprehensive loss | $ | (240.6 | ) | $ | (249.3 | ) | |
Total shareholders' deficit | (2.8 | ) | (60.1 | ) | |||
Total liabilities and shareholders' deficit | $ | 1,596.8 | $ | 1,618.6 |
For the Nine Months Ended June 30, | |||||||
2016 | 2015 | ||||||
Cash Flow from Operating Activities | |||||||
Net earnings/(loss) | $ | 106.1 | $ | (27.1 | ) | ||
Non-cash restructuring costs | 4.5 | 12.8 | |||||
Depreciation and amortization | 23.4 | 33.2 | |||||
Venezuela deconsolidation charge | — | 65.2 | |||||
Deferred income taxes | 1.9 | 0.4 | |||||
Share-based payments | 15.3 | 7.2 | |||||
Non-cash items included in income, net | 0.5 | (5.4 | ) | ||||
Other, net | (19.3 | ) | (12.8 | ) | |||
Changes in current assets and liabilities used in operations | 9.5 | 29.4 | |||||
Net cash from operating activities | 141.9 | 102.9 | |||||
Cash Flow from Investing Activities | |||||||
Capital expenditures | (17.8 | ) | (31.1 | ) | |||
Proceeds from sale of assets | 1.5 | 13.7 | |||||
Acquisitions, net of cash acquired | — | (12.1 | ) | ||||
Net cash used by investing activities | (16.3 | ) | (29.5 | ) | |||
Cash Flow from Financing Activities | |||||||
Cash proceeds from issuance of debt with original maturities greater than 90 days | — | 999.0 | |||||
Payments on debt with maturities greater than 90 days | (2.0 | ) | — | ||||
Net increase in debt with original maturities of 90 days or less | 4.9 | — | |||||
Dividends paid | (46.4 | ) | — | ||||
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 | — | (1,066.6 | ) | ||||
Deferred Finance Expense | — | (12.1 | ) | ||||
Net cash used by financing activities | (68.6 | ) | (79.7 | ) | |||
Effect of exchange rate changes on cash | 8.0 | (0.8 | ) | ||||
Net increase/(decrease) in cash and cash equivalents | 65.0 | (7.1 | ) | ||||
Cash and cash equivalents, beginning of period | 502.1 | 89.6 | |||||
Cash and cash equivalents, end of period | $ | 567.1 | $ | 82.5 |
Quarter Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net Sales | |||||||||||||||
North America | $ | 188.0 | $ | 184.9 | $ | 636.0 | $ | 605.9 | |||||||
Latin America | 25.9 | 27.8 | 86.5 | 99.9 | |||||||||||
EMEA | 77.2 | 82.3 | 271.4 | 287.4 | |||||||||||
Asia Pacific | 69.9 | 79.3 | 207.9 | 239.3 | |||||||||||
Total net sales | $ | 361.0 | $ | 374.3 | $ | 1,201.8 | $ | 1,232.5 | |||||||
Segment Profit | |||||||||||||||
North America | $ | 46.0 | $ | 46.4 | $ | 177.9 | $ | 163.1 | |||||||
Latin America | 3.1 | 6.8 | 15.6 | 16.8 | |||||||||||
EMEA | 8.9 | 8.8 | 40.1 | 52.8 | |||||||||||
Asia Pacific | 16.8 | 20.7 | 50.8 | 63.8 | |||||||||||
Total segment profit | $ | 74.8 | $ | 82.7 | $ | 284.4 | $ | 296.5 | |||||||
General corporate and other expenses | $ | (19.7 | ) | $ | (9.8 | ) | $ | (56.9 | ) | $ | (43.0 | ) | |||
Global marketing expense (1) | (5.1 | ) | (5.9 | ) | (10.4 | ) | (16.3 | ) | |||||||
Research and development expense | (6.6 | ) | (6.5 | ) | (19.1 | ) | (19.1 | ) | |||||||
Venezuela deconsolidation charge | — | — | — | (65.2 | ) | ||||||||||
Restructuring (1) | (0.1 | ) | (19.4 | ) | (4.9 | ) | (10.2 | ) | |||||||
Acquisition and integration costs (1) | (4.1 | ) | (0.4 | ) | (4.1 | ) | (1.3 | ) | |||||||
Spin costs (1) | (1.9 | ) | (37.8 | ) | (10.6 | ) | (82.9 | ) | |||||||
Spin restructuring | (0.9 | ) | (11.7 | ) | (1.0 | ) | (36.0 | ) | |||||||
Cost of early debt retirement (1) | — | (26.7 | ) | — | (26.7 | ) | |||||||||
Interest expense | (13.1 | ) | (10.8 | ) | (39.1 | ) | (38.5 | ) | |||||||
Other financing items, net | 0.4 | 5.8 | 0.9 | 11.9 | |||||||||||
Total earnings/(loss) before income taxes | $ | 23.7 | $ | (40.5 | ) | $ | 139.2 | $ | (30.8 | ) |
Quarter Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
Net Sales | 2016 | 2015 | 2016 | 2015 | |||||||||||
Alkaline batteries | $ | 228.6 | $ | 233.9 | $ | 768.8 | $ | 786.2 | |||||||
Other batteries and lighting products | 132.4 | 140.4 | 433.0 | 446.3 | |||||||||||
Total net sales | $ | 361.0 | $ | 374.3 | $ | 1,201.8 | $ | 1,232.5 |
For the Quarter Ended June 30, | ||||||||||||||||||||||||
(in millions, except per share data) | Earnings/(Loss) Before Income Taxes | Net Earnings/(Loss) | Diluted EPS | |||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||
Reported - GAAP | $ | 23.7 | $ | (40.5 | ) | $ | 24.2 | $ | (19.6 | ) | $ | 0.39 | $ | (0.32 | ) | |||||||||
Impacts: Expense (Income) | ||||||||||||||||||||||||
Spin costs (1) | 1.9 | 37.8 | 1.3 | 25.0 | 0.02 | 0.40 | ||||||||||||||||||
Spin restructuring | 0.9 | 11.7 | 0.7 | 7.9 | 0.01 | 0.13 | ||||||||||||||||||
Costs of early debt retirement (2) | — | 26.7 | — | 16.7 | — | 0.27 | ||||||||||||||||||
Restructuring (1) | 0.1 | 19.4 | 0.1 | 12.4 | — | 0.20 | ||||||||||||||||||
Acquisition and integration costs (1) | 4.1 | 0.4 | 2.6 | 0.3 | 0.04 | — | ||||||||||||||||||
Adjustments to prior year tax accruals | — | — | (8.8 | ) | (2.6 | ) | (0.14 | ) | (0.04 | ) | ||||||||||||||
Adjusted - Non-GAAP (3) | $ | 30.7 | $ | 55.5 | $ | 20.1 | $ | 40.1 | $ | 0.32 | $ | 0.64 | ||||||||||||
Weighted average shares - Diluted (4) | 62.7 | 62.2 |
For the Nine Months Ended June 30, | ||||||||||||||||||||||||
(in millions, except per share data) | Earnings/(Loss) Before Income Taxes | Net Earnings/(Loss) | Diluted EPS | |||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||
Reported - GAAP | $ | 139.2 | $ | (30.8 | ) | $ | 106.1 | $ | (27.1 | ) | $ | 1.70 | $ | (0.44 | ) | |||||||||
Impacts: Expense (Income) | ||||||||||||||||||||||||
Venezuela deconsolidation charge | — | 65.2 | — | 65.2 | — | 1.05 | ||||||||||||||||||
Spin costs (1) | 10.6 | 82.9 | 7.0 | 54.8 | 0.11 | 0.88 | ||||||||||||||||||
Spin restructuring | 1.0 | 36.0 | 0.9 | 24.2 | 0.01 | 0.39 | ||||||||||||||||||
Costs of early debt retirement (2) | — | 26.7 | — | 16.7 | — | 0.27 | ||||||||||||||||||
Restructuring (1) | 4.9 | 10.2 | 3.1 | 6.6 | 0.05 | 0.11 | ||||||||||||||||||
Acquisition and integration costs (1) | 4.1 | 1.3 | 2.6 | 1.0 | 0.04 | 0.01 | ||||||||||||||||||
Adjustments to prior year tax accruals | — | — | (8.8 | ) | (2.6 | ) | (0.14 | ) | (0.04 | ) | ||||||||||||||
Adjusted - Non-GAAP (3) | $ | 159.8 | $ | 191.5 | $ | 110.9 | $ | 138.8 | $ | 1.77 | $ | 2.23 | ||||||||||||
Weighted average shares - Diluted (4) | 62.5 | 62.2 |
Net Sales | |||||||||||||||||||||||
Q1'16 | % Chg | Q2'16 | % Chg | Q3'16 | % Chg | Nine Months Q3'16 | % Chg | ||||||||||||||||
North America | |||||||||||||||||||||||
Net sales - prior year | $ | 251.4 | $ | 169.6 | $ | 184.9 | $ | 605.9 | |||||||||||||||
Organic | 31.5 | 12.5 | % | 0.2 | 0.1 | % | 3.8 | 2.1 | % | 35.5 | 5.9 | % | |||||||||||
Impact of currency | (3.7 | ) | (1.4 | )% | (1.0 | ) | (0.6 | )% | (0.7 | ) | (0.4 | )% | (5.4 | ) | (0.9 | )% | |||||||
Net sales - current year | $ | 279.2 | 11.1 | % | $ | 168.8 | (0.5 | )% | $ | 188.0 | 1.7 | % | $ | 636.0 | 5.0 | % | |||||||
Latin America | |||||||||||||||||||||||
Net sales - prior year | $ | 38.3 | $ | 33.8 | $ | 27.8 | $ | 99.9 | |||||||||||||||
Organic | 4.6 | 12.0 | % | 4.0 | 11.8 | % | 5.0 | 18.0 | % | 13.6 | 13.6 | % | |||||||||||
Int'l Go-to-Market | 0.1 | 0.3 | % | (0.4 | ) | (1.2 | )% | (1.7 | ) | (6.1 | )% | (2.0 | ) | (2.0 | )% | ||||||||
Change in Venezuela results | (3.1 | ) | (8.1 | )% | (5.4 | ) | (16.0 | )% | — | — | % | (8.5 | ) | (8.5 | )% | ||||||||
Impact of currency | (5.4 | ) | (14.1 | )% | (5.9 | ) | (17.4 | )% | (5.2 | ) | (18.7 | )% | (16.5 | ) | (16.5 | )% | |||||||
Net sales - current year | $ | 34.5 | (9.9 | )% | $ | 26.1 | (22.8 | )% | $ | 25.9 | (6.8 | )% | $ | 86.5 | (13.4 | )% | |||||||
EMEA | |||||||||||||||||||||||
Net sales - prior year | $ | 125.9 | $ | 79.2 | $ | 82.3 | $ | 287.4 | |||||||||||||||
Organic | 9.9 | 7.9 | % | 2.6 | 3.3 | % | (0.7 | ) | (0.9 | )% | 11.8 | 4.1 | % | ||||||||||
Int'l Go-to-Market | (2.2 | ) | (1.7 | )% | (1.1 | ) | (1.4 | )% | (0.2 | ) | (0.2 | )% | (3.5 | ) | (1.2 | )% | |||||||
Impact of currency | (15.7 | ) | (12.6 | )% | (4.4 | ) | (5.6 | )% | (4.2 | ) | (5.1 | )% | (24.3 | ) | (8.5 | )% | |||||||
Net sales - current year | $ | 117.9 | (6.4 | )% | $ | 76.3 | (3.7 | )% | $ | 77.2 | (6.2 | )% | $ | 271.4 | (5.6 | )% | |||||||
Asia Pacific | |||||||||||||||||||||||
Net sales - prior year | $ | 85.7 | $ | 74.3 | $ | 79.3 | $ | 239.3 | |||||||||||||||
Organic | 1.4 | 1.6 | % | (4.9 | ) | (6.6 | )% | (3.6 | ) | (4.5 | )% | (7.1 | ) | (3.0 | )% | ||||||||
Int'l Go-to-Market | (3.5 | ) | (4.1 | )% | (2.4 | ) | (3.2 | )% | (3.3 | ) | (4.2 | )% | (9.2 | ) | (3.8 | )% | |||||||
Impact of currency | (8.4 | ) | (9.8 | )% | (4.2 | ) | (5.7 | )% | (2.5 | ) | (3.2 | )% | (15.1 | ) | (6.3 | )% | |||||||
Net sales - current year | $ | 75.2 | (12.3 | )% | $ | 62.8 | (15.5 | )% | $ | 69.9 | (11.9 | )% | $ | 207.9 | (13.1 | )% | |||||||
Total Net Sales | |||||||||||||||||||||||
Net sales - prior year | $ | 501.3 | $ | 356.9 | $ | 374.3 | $ | 1,232.5 | |||||||||||||||
Organic | 47.4 | 9.5 | % | 1.9 | 0.5 | % | 4.5 | 1.2 | % | 53.8 | 4.4 | % | |||||||||||
Int'l Go-to-Market | (5.6 | ) | (1.1 | )% | (3.9 | ) | (1.1 | )% | (5.2 | ) | (1.4 | )% | (14.7 | ) | (1.2 | )% | |||||||
Change in Venezuela results | (3.1 | ) | (0.6 | )% | (5.4 | ) | (1.5 | )% | — | — | % | (8.5 | ) | (0.7 | )% | ||||||||
Impact of currency | (33.2 | ) | (6.7 | )% | (15.5 | ) | (4.3 | )% | (12.6 | ) | (3.4 | )% | (61.3 | ) | (5.0 | )% | |||||||
Net sales - current year | $ | 506.8 | 1.1 | % | $ | 334.0 | (6.4 | )% | $ | 361.0 | (3.6 | )% | $ | 1,201.8 | (2.5 | )% |
Segment Profit | |||||||||||||||||||||||||
Q1'16 | % Chg | Q2'16 | % Chg | Q3'16 | % Chg | Nine Months Q3'16 | % Chg | ||||||||||||||||||
North America | |||||||||||||||||||||||||
Segment Profit - prior year | $ | 70.9 | $ | 45.8 | $ | 46.4 | $ | 163.1 | |||||||||||||||||
Organic | 22.6 | 31.9 | % | (4.1 | ) | (9.0 | )% | — | — | % | 18.5 | 11.3 | % | ||||||||||||
Impact of currency | (2.7 | ) | (3.8 | )% | (0.6 | ) | (1.3 | )% | (0.4 | ) | (0.9 | )% | (3.7 | ) | (2.2 | )% | |||||||||
Segment Profit - current year | $ | 90.8 | 28.1 | % | $ | 41.1 | (10.3 | )% | $ | 46.0 | (0.9 | )% | $ | 177.9 | 9.1 | % | |||||||||
Latin America | |||||||||||||||||||||||||
Segment Profit - prior year | $ | 4.7 | $ | 5.3 | $ | 6.8 | $ | 16.8 | |||||||||||||||||
Organic | 5.8 | 123.4 | % | 4.1 | 77.4 | % | (0.5 | ) | (7.4 | )% | 9.4 | 56.0 | % | ||||||||||||
Int'l Go-to-Market | 1.5 | 31.9 | % | 1.1 | 20.8% | (0.1 | ) | (1.5 | )% | 2.5 | 14.9 | % | |||||||||||||
Change in Venezuela results | (0.5 | ) | (10.6 | )% | (2.0 | ) | (37.7 | )% | — | — | % | (2.5 | ) | (14.9 | )% | ||||||||||
Impact of currency | (3.6 | ) | (76.6 | )% | (3.9 | ) | (73.7)% | (3.1 | ) | (45.5 | )% | (10.6 | ) | (63.1 | )% | ||||||||||
Segment Profit - current year | $ | 7.9 | 68.1 | % | $ | 4.6 | (13.2 | )% | $ | 3.1 | (54.4 | )% | $ | 15.6 | (7.1 | )% | |||||||||
EMEA | |||||||||||||||||||||||||
Segment Profit - prior year | $ | 34.4 | $ | 9.6 | $ | 8.8 | $ | 52.8 | |||||||||||||||||
Organic | 0.5 | 1.5 | % | 1.9 | 19.8 | % | 3.2 | 36.4 | % | 5.6 | 10.6 | % | |||||||||||||
Int'l Go-to-Market | (0.8 | ) | (2.3 | )% | (0.4 | ) | (4.2)% | 0.2 | 2.3 | % | (1.0 | ) | (1.9 | )% | |||||||||||
Impact of currency | (11.1 | ) | (32.3 | )% | (2.9 | ) | (30.2 | )% | (3.3 | ) | (37.6 | )% | (17.3 | ) | (32.8 | )% | |||||||||
Segment Profit - current year | $ | 23.0 | (33.1 | )% | $ | 8.2 | (14.6 | )% | $ | 8.9 | 1.1 | % | $ | 40.1 | (24.1 | )% | |||||||||
Asia Pacific | |||||||||||||||||||||||||
Segment Profit - prior year | $ | 23.0 | $ | 20.1 | $ | 20.7 | $ | 63.8 | |||||||||||||||||
Organic | 2.2 | 9.6 | % | (2.9 | ) | (14.4 | )% | (1.0 | ) | (4.8 | )% | (1.7 | ) | (2.7 | )% | ||||||||||
Int'l Go-to-Market | 0.9 | 3.9 | % | 0.3 | 1.5 | % | (1.0 | ) | (4.8 | )% | 0.2 | 0.3 | % | ||||||||||||
Impact of currency | (6.6 | ) | (28.7 | )% | (3.0 | ) | (15.0 | )% | (1.9 | ) | (9.2 | )% | (11.5 | ) | (18.0 | )% | |||||||||
Segment Profit - current year | $ | 19.5 | (15.2 | )% | $ | 14.5 | (27.9 | )% | $ | 16.8 | (18.8 | )% | $ | 50.8 | (20.4 | )% | |||||||||
Total Segment Profit | |||||||||||||||||||||||||
Segment Profit - prior year | $ | 133.0 | $ | 80.8 | $ | 82.7 | $ | 296.5 | |||||||||||||||||
Organic | 31.1 | 23.4 | % | (1.0 | ) | (1.2 | )% | 1.7 | 2.1 | % | 31.8 | 10.7 | % | ||||||||||||
Int'l Go-to-Market | 1.6 | 1.2 | % | 1.0 | 1.2 | % | (0.9 | ) | (1.1 | )% | 1.7 | 0.6 | % | ||||||||||||
Change in Venezuela results | (0.5 | ) | (0.4 | )% | (2.0 | ) | (2.5 | )% | — | — | % | (2.5 | ) | (0.8 | )% | ||||||||||
Impact of currency | (24.0 | ) | (18.0 | )% | (10.4 | ) | (12.8 | )% | (8.7 | ) | (10.6 | )% | (43.1 | ) | (14.6 | )% | |||||||||
Segment Profit - current year | $ | 141.2 | 6.2 | % | $ | 68.4 | (15.3 | )% | $ | 74.8 | (9.6 | )% | $ | 284.4 | (4.1 | )% |
Quarter Ended June 30, 2016 | % of Sales | |||||||||||||||||||||||||
Sales | GM | A&P | R&D | SG&A | Sales | GM | A&P | R&D | SG&A | |||||||||||||||||
FY'15 - GAAP | $ | 374.3 | $ | 170.8 | $ | 35.1 | $ | 6.5 | $ | 108.2 | ||||||||||||||||
Adjustments (1) | — | 1.1 | — | — | (38.4 | ) | ||||||||||||||||||||
FY'15 - Adj. GAAP | $ | 374.3 | $ | 171.9 | $ | 35.1 | $ | 6.5 | $ | 69.8 | ||||||||||||||||
45.9 | % | 9.4 | % | 1.7 | % | 18.6 | % | |||||||||||||||||||
Impact of currency | $ | (12.6 | ) | $ | (11.3 | ) | $ | (0.5 | ) | $ | — | $ | (2.3 | ) | (3.4 | )% | (1.5 | )% | 0.2 | % | 0.1 | % | — | % | ||
Int'l Go-to-Market | (5.2 | ) | (2.0 | ) | (0.1 | ) | — | (1.0 | ) | (1.4 | )% | 0.1 | % | 0.1 | % | — | % | — | % | |||||||
Organic | 4.5 | (4.9 | ) | (11.7 | ) | 0.1 | 14.4 | 1.2 | % | (1.8 | )% | (3.2 | )% | — | % | 3.6 | % | |||||||||
Other | — | % | (0.1 | )% | (0.2 | )% | — | % | 0.2 | % | ||||||||||||||||
FY'16 - Adj. GAAP | $ | 361.0 | $ | 153.7 | $ | 22.8 | $ | 6.6 | $ | 80.9 | ||||||||||||||||
% of Sales | 42.6 | % | 6.3 | % | 1.8 | % | 22.4 | % | ||||||||||||||||||
Adjustments (2) | — | — | — | — | 6.1 | |||||||||||||||||||||
FY'16 - GAAP | $ | 361.0 | $ | 153.7 | $ | 22.8 | $ | 6.6 | $ | 87.0 |
Nine Months Ended June 30, 2016 | % of Sales | |||||||||||||||||||||||||
Sales | GM | A&P | R&D | SG&A | Sales | GM | A&P | R&D | SG&A | |||||||||||||||||
FY'15 - GAAP | $ | 1,232.5 | $ | 573.1 | $ | 99.0 | $ | 19.1 | $ | 322.5 | ||||||||||||||||
Adjustments (1) | — | 1.1 | — | — | (84.5 | ) | ||||||||||||||||||||
FY'15 - Adj. GAAP | $ | 1,232.5 | $ | 574.2 | $ | 99.0 | $ | 19.1 | $ | 238.0 | ||||||||||||||||
46.6 | % | 8.0 | % | 1.5 | % | 19.3 | % | |||||||||||||||||||
Impact of currency | $ | (61.3 | ) | $ | (54.8 | ) | $ | (2.7 | ) | $ | — | $ | (10.1 | ) | (5.0 | )% | (2.2 | )% | 0.2 | % | 0.1 | % | 0.1 | % | ||
Change in Venezuela results | (8.5 | ) | (6.1 | ) | (0.2 | ) | — | (3.5 | ) | (0.7 | )% | (0.2 | )% | — | % | — | % | (0.2 | )% | |||||||
Int'l Go-to-Market | (14.7 | ) | (6.8 | ) | (1.1 | ) | — | (7.4 | ) | (1.2 | )% | — | % | — | % | — | % | (0.4 | )% | |||||||
Organic | 53.8 | 21.4 | (24.0 | ) | — | 22.8 | 4.4 | % | (0.3 | )% | (2.2 | )% | — | % | 1.0 | % | ||||||||||
Other | — | % | — | % | (0.1 | )% | — | % | 0.2 | % | ||||||||||||||||
FY'16 - Adj. GAAP | $ | 1,201.8 | $ | 527.9 | $ | 71.0 | $ | 19.1 | $ | 239.8 | ||||||||||||||||
% of Sales | 43.9 | % | 5.9 | % | 1.6 | % | 20.0 | % | ||||||||||||||||||
Adjustments (2) | — | (2.8 | ) | — | — | 14.3 | ||||||||||||||||||||
FY'16 - GAAP | $ | 1,201.8 | $ | 525.1 | $ | 71.0 | $ | 19.1 | $ | 254.1 |
Q3'16 | Q2'16 | Q1'16 | Q4'15 | LTM 06/30/16 | Q3'15 | ||||||||||||||||||
Net earnings/(loss) | $ | 24.2 | $ | 16.4 | $ | 65.5 | $ | 23.1 | $ | 129.2 | $ | (19.6 | ) | ||||||||||
Income tax provision/(benefit) | (0.5 | ) | 4.6 | 29.0 | 7.0 | 40.1 | (20.9 | ) | |||||||||||||||
Earnings/(loss) before income taxes | $ | 23.7 | $ | 21.0 | $ | 94.5 | $ | 30.1 | $ | 169.3 | $ | (40.5 | ) | ||||||||||
Interest expense (2) | 13.1 | 13.1 | 12.9 | 12.7 | 51.8 | 37.5 | |||||||||||||||||
Depreciation & Amortization | 7.8 | 7.8 | 7.8 | 8.6 | 32.0 | 10.9 | |||||||||||||||||
EBITDA | $ | 44.6 | $ | 41.9 | $ | 115.2 | $ | 51.4 | $ | 253.1 | $ | 7.9 | |||||||||||
Adjustments: | |||||||||||||||||||||||
Restructuring | $ | 0.1 | $ | 1.5 | $ | 3.3 | $ | 2.8 | $ | 7.7 | $ | 19.4 | |||||||||||
Acquisition and integration costs | 4.1 | — | — | 0.3 | 4.4 | 0.4 | |||||||||||||||||
Spin costs | 1.9 | 2.7 | 6.0 | 15.2 | 25.8 | 37.8 | |||||||||||||||||
Spin restructuring | 0.9 | (0.8 | ) | 0.9 | 3.1 | 4.1 | 11.7 | ||||||||||||||||
Share-based payments | 4.6 | 6.1 | 4.6 | 3.9 | 19.2 | 1.8 | |||||||||||||||||
Adjusted EBITDA | $ | 56.2 | $ | 51.4 | $ | 130.0 | $ | 76.7 | $ | 314.3 | $ | 79.0 |
For the Nine Months Ended June 30, 2016 | ||||
Net cash from operating activities | $ | 141.9 | ||
Capital expenditures | (17.8 | ) | ||
Proceeds from sale of assets | 1.5 | |||
Free Cash Flow | $ | 125.6 |
Q1'16 | Q2'16 | Q3'16 | Q1'15 | Q2'15 | Q3'15 | Q3'16 YTD | Q3'15 YTD | ||||||||||||||||||||
Sales | $ | 506.8 | $ | 334.0 | $361.0 | $ | 501.3 | $ | 356.9 | $ | 374.3 | $ | 1,201.8 | $ | 1,232.5 | ||||||||||||
Cost of products sold - adjusted | 275.9 | 190.7 | $207.3 | 267.5 | 188.4 | 202.4 | $ | 673.9 | 658.3 | ||||||||||||||||||
Gross profit - adjusted | 230.9 | 143.3 | 153.7 | 233.8 | 168.5 | 171.9 | 527.9 | 574.2 | |||||||||||||||||||
% of Net Sales | 45.6 | % | 42.9 | % | 42.6 | % | 46.6 | % | 47.2 | % | 45.9 | % | 43.9 | % | 46.6 | % | |||||||||||
SG&A (Segment) | 59.2 | 57.3 | 57.2 | 67.1 | 59.8 | 55.9 | 173.7 | 182.8 | |||||||||||||||||||
SG&A (Corporate) | 16.6 | 21.3 | 19.3 | 17.4 | 15.8 | 9.8 | 57.2 | 43.0 | |||||||||||||||||||
SG&A (Global Marketing) | 1.9 | 2.6 | 4.4 | 3.5 | 4.6 | 4.1 | 8.9 | 12.2 | |||||||||||||||||||
Subtotal - SG&A - adjusted | 77.7 | 81.2 | 80.9 | 88.0 | 80.2 | 69.8 | 239.8 | 238.0 | |||||||||||||||||||
% of Sales | 15.3 | % | 24.3 | % | 22.4 | % | 17.6 | % | 22.5 | % | 18.6 | % | 20.0 | % | 19.3 | % | |||||||||||
Advertising and sales promotion expense (Segment) | 29.8 | 17.6 | 22.1 | 33.6 | 28.0 | 33.3 | 69.5 | 94.9 | |||||||||||||||||||
Advertising and sales promotion expense (Global) | 0.3 | 0.5 | 0.7 | 0.8 | 1.5 | 1.8 | 1.5 | 4.1 | |||||||||||||||||||
Subtotal - A&P | 30.1 | 18.1 | 22.8 | 34.4 | 29.5 | 35.1 | 71.0 | 99.0 | |||||||||||||||||||
% of Sales | 5.9 | % | 5.4 | % | 6.3 | % | 6.9 | % | 8.3 | % | 9.4 | % | 5.9 | % | 8.0 | % | |||||||||||
Research and development expense | 6.1 | 6.4 | 6.6 | 6.2 | 6.4 | 6.5 | 19.1 | 19.1 | |||||||||||||||||||
% of Sales | 1.2 | % | 1.9 | % | 1.8 | % | 1.2 | % | 1.8 | % | 1.7 | % | 1.6 | % | 1.5 | % | |||||||||||
Interest Expense | 12.9 | 13.1 | 13.1 | 12.5 | 15.2 | 10.8 | 39.1 | 38.5 | |||||||||||||||||||
Cost of debt early retirement | — | — | — | — | — | 26.7 | — | 26.7 | |||||||||||||||||||
Other financing items, net | (0.6 | ) | 0.1 | (0.4) | (2.8 | ) | (3.3 | ) | (5.8 | ) | (0.9 | ) | (11.9 | ) | |||||||||||||
Restructuring | 2.2 | 0.3 | — | (9.6 | ) | 0.3 | 18.1 | 2.5 | 8.8 | ||||||||||||||||||
Restructuring (COGS) | 1.1 | 1.2 | 0.1 | — | — | 1.1 | 2.4 | 1.1 | |||||||||||||||||||
Restructuring (SG&A) | — | — | — | 0.1 | — | 0.2 | — | 0.3 | |||||||||||||||||||
Acquisition and integration costs (SG&A) | — | — | 4.1 | 0.4 | 0.5 | 0.4 | 4.1 | 1.3 | |||||||||||||||||||
Spin (COGS) | — | 0.5 | (0.1) | — | — | — | 0.4 | — | |||||||||||||||||||
Spin (SG&A) | 6.0 | 2.2 | 2.0 | 22.1 | 23.0 | 37.8 | 10.2 | 82.9 | |||||||||||||||||||
Spin restructuring | 0.9 | (0.8 | ) | 0.9 | 1.1 | 23.2 | 11.7 | 1.0 | 36.0 | ||||||||||||||||||
Venezuela deconsolidation | — | — | — | — | 65.2 | — | — | 65.2 | |||||||||||||||||||
Earnings/(loss) before income taxes | 94.5 | 21.0 | 23.7 | 81.4 | (71.7 | ) | (40.5 | ) | 139.2 | (30.8 | ) | ||||||||||||||||
Income Taxes Provision/(Benefit) | 29.0 | 4.6 | (0.5 | ) | 19.7 | (2.5 | ) | (20.9 | ) | 33.1 | (3.7 | ) | |||||||||||||||
NET EARNINGS/(LOSS) | $ | 65.5 | $ | 16.4 | $ | 24.2 | $ | 61.7 | $ | (69.2 | ) | $ | (19.6 | ) | $ | 106.1 | $ | (27.1 | ) |
Cost of products sold | Q1'16 | Q2'16 | Q3'16 | Q1'15 | Q2'15 | Q3'15 | Q3'16 YTD | Q3'15 YTD | |||||||||||||||||||
Cost of products sold - adjusted | $ | 275.9 | $ | 190.7 | $ | 207.3 | $ | 267.5 | $ | 188.4 | $ | 202.4 | $ | 673.9 | $ | 658.3 | |||||||||||
Restructuring | 1.1 | 1.2 | 0.1 | — | — | 1.1 | 2.4 | 1.1 | |||||||||||||||||||
Spin | — | 0.5 | (0.1 | ) | — | — | — | 0.4 | — | ||||||||||||||||||
Cost of products sold - reported | $ | 277.0 | $ | 192.4 | $ | 207.3 | $ | 267.5 | $ | 188.4 | $ | 203.5 | 676.7 | $ | 659.4 | ||||||||||||
Reported Gross Profit | $ | 229.8 | $ | 141.6 | $ | 153.7 | $ | 233.8 | $ | 168.5 | $ | 170.8 | $ | 525.1 | $ | 573.1 | |||||||||||
Reported % of Net Sales | 45.3 | % | 42.4 | % | 42.6 | % | 46.6 | % | 47.2 | % | 45.6 | % | 43.7% | 46.5 | % | ||||||||||||
SG&A | Q1'16 | Q2'16 | Q3'16 | Q1'15 | Q2'15 | Q3'15 | Q3'16 YTD | Q3'15 YTD | |||||||||||||||||||
Segment SG&A | $ | 59.2 | $ | 57.3 | $ | 57.2 | $ | 67.1 | $ | 59.8 | $ | 55.9 | $ | 173.7 | $ | 182.8 | |||||||||||
Corporate SG&A | 16.6 | 21.3 | 19.3 | 17.4 | 15.8 | 9.8 | 57.2 | 43.0 | |||||||||||||||||||
Global Marketing | 1.9 | 2.6 | 4.4 | 3.5 | 4.6 | 4.1 | 8.9 | 12.2 | |||||||||||||||||||
Restructuring | — | — | — | 0.1 | — | 0.2 | — | 0.3 | |||||||||||||||||||
Acquisition and integration costs | — | — | 4.1 | 0.4 | 0.5 | 0.4 | 4.1 | 1.3 | |||||||||||||||||||
Spin | 6.0 | 2.2 | 2.0 | 22.1 | 23.0 | 37.8 | 10.2 | 82.9 | |||||||||||||||||||
Reported SG&A | $ | 83.7 | $ | 83.4 | $ | 87.0 | $ | 110.6 | $ | 103.7 | $ | 108.2 | $ | 254.1 | $ | 322.5 | |||||||||||
Reported % of Net Sales | 16.5 | % | 25.0 | % | 24.1 | % | 22.1 | % | 29.1 | % | 28.9 | % | 21.1 | % | 26.2 | % | |||||||||||
Restructuring | Q1'16 | Q2'16 | Q3'16 | Q1'15 | Q2'15 | Q3'15 | Q3'16 YTD | Q3'15 YTD | |||||||||||||||||||
Restructuring | $ | 2.2 | $ | 0.3 | $ | — | $ | (9.6 | ) | $ | 0.3 | $ | 18.1 | $ | 2.5 | $ | 8.8 | ||||||||||
Restructuring (SG&A) | — | — | — | 0.1 | — | 0.2 | — | 0.3 | |||||||||||||||||||
Restructuring (COGS) | 1.1 | 1.2 | 0.1 | — | — | 1.1 | 2.4 | 1.1 | |||||||||||||||||||
Restructuring - subtotal | $ | 3.3 | $ | 1.5 | $ | 0.1 | $ | (9.5 | ) | $ | 0.3 | $ | 19.4 | $ | 4.9 | $ | 10.2 | ||||||||||
Spin | Q1'16 | Q2'16 | Q3'16 | Q1'15 | Q2'15 | Q3'15 | Q3'16 YTD | Q3'15 YTD | |||||||||||||||||||
Spin (SG&A) | $ | 6.0 | $ | 2.2 | $ | 2.0 | $ | 22.1 | $ | 23.0 | $ | 37.8 | $ | 10.2 | $ | 82.9 | |||||||||||
Spin (COGS) | — | 0.5 | (0.1 | ) | — | — | — | 0.4 | — | ||||||||||||||||||
Spin restructuring | 0.9 | (0.8 | ) | 0.9 | 1.1 | 23.2 | 11.7 | 1.0 | 36.0 | ||||||||||||||||||
Spin - subtotal | $ | 6.9 | $ | 1.9 | $ | 2.8 | $ | 23.2 | $ | 46.2 | $ | 49.5 | $ | 11.6 | $ | 118.9 |