Exhibit 99.1
PRESTIGE BRANDS HOLDINGS, INC. REPORTS FOURTH QUARTER AND FISCAL ’09 RESULTS
| Ø | Fourth quarter revenues were $70.9 million, 11.9% less than the prior year comparable quarter revenues of $80.4 million; fiscal year 2009 revenues were $312.7 million, 4.3% below the comparable period’s revenues of $326.6 million. |
| Ø | Fourth quarter reported net loss includes an after-tax non-cash goodwill impairment charge of $220.1 million. |
| Ø | Excluding effects of the non-cash goodwill impairment charge, fourth quarter net income would have been $9.0 million, or $0.18 per diluted share. |
| Ø | Free cash flow for the quarter was $13.2 million, an increase of 37.5% over the same period last year; free cash flow for fiscal year 2009 increased 48.8% over prior year to $66.2 million. |
| Ø | Excluding the effects of the non-cash impairment charge, fiscal year 2009 net income would have been $33.3 million, or $0.67 per diluted share. |
Irvington, NY, May 14, 2009—Prestige Brands Holdings, Inc. (NYSE-PBH) today reported fourth quarter fiscal year 2009 revenues of $70.9 million, 11.9% below the same period a year ago reflecting the challenging macroeconomic environment and continuing inventory reductions by retailers. Revenues declined for all three reporting segments in the quarter.
The Company reported a net loss for fourth quarter fiscal year 2009 of $211.1 million or $4.22 per diluted share. This includes the effects of a non-cash, pre-tax impairment charge of $249.6 million to reduce the book value of the Company’s goodwill and other intangible assets to their estimated fair value. Excluding the effects of the impairment charge, net income for the quarter would have been $9.0 million, a decrease of $1.4 million or 13.5% from last year’s reported net income of $10.4 million, or $0.18 per share.
The reduction in net income, exclusive of the impairment charge, was primarily due to the sales decline, partially offset by decreases in advertising and promotion, general and administrative (G&A) and interest expenses. The reduction in advertising and promotion expenses resulted from declines in non-working media compared to the prior year quarter. The G&A reduction was primarily due to a reduction in bonus expense for the current year as the Company’s operating performance for fiscal year 2009 resulted in no annual incentive payout. Interest expense was significantly below the prior year due to a combination of the lower debt outstanding and lower interest rates compared to fourth quarter of fiscal year 2008.
Commenting on the results, Mark Pettie, Chairman and CEO, said, “We faced a challenging quarter and second half of fiscal 2009 as a result of the macroeconomic headwinds and associated pull-backs in consumer spending and retailer inventory reductions affecting each segment of our business. Despite these circumstances, during the quarter we were able to use our strong cash flow to complete the planned improvement in our liquidity position and resume our debt pay down.”
Mr. Pettie added, “Given the current external operating environment, we remain cautious in our outlook for fiscal year 2010, and we project revenue performance below our long term goal of 2-4%. However, we believe we are in a good position to weather the economic challenges faced by our industry, and plan to continue investing in our focus brands going forward.”
Results by Segment for Fourth Fiscal Quarter
Over-the-Counter Healthcare Products (OTC)
Net revenues for the OTC segment of $39.8 million were $6.4 million or 13.9% below the prior year comparable period. The sales declines resulted from shortfalls on Chloraseptic®, Compound W®, Wartner®, Murine® ear, Dermoplast® and The Doctor’s® brands. Partially offsetting these declines were increases in sales of Little Remedies® and New Skin® as well as sales of the new Chloraseptic® and Little Allergies® Allergen Block products.
Household Products
The household cleaning products segment reported net revenues of $26.7 million, $3.0 million, or 10.1% less than the prior year comparable period. Revenues for the Spic and Span® brand were even with the prior year period, while Comet® and Chore Boy® experienced sales declines.
Personal Care Products
Net revenues of $4.3 million for the Personal Care products segment were $200 thousand less than the prior year comparable period. A sales increase for Cutex® was offset by declines on the Denorex® and Prell® shampoo brands.
Fiscal Year 2009
The Company reported total revenues of $312.7 million for the fiscal year ended March 31, 2009, 4.3% less than fiscal 2008 total revenues of $326.6 million. The reported net loss for fiscal 2009 of $186.8 million (($3.74) per diluted share) compared to net income of $33.9 million ($0.68 per diluted share) for
fiscal year 2008. Excluding the effects of the impairment charge, the Company’s 2009 net income would have been $33.3 million, which was $0.6 million or 1.8% below fiscal 2008 results. Excluding the effects of the impairment charge, fully diluted earnings per share would have been $0.67 for 2009 compared to $0.68 in fiscal 2008.
Free Cash Flow and Debt Repayment
Free cash flow is a “non GAAP financial measure”. Free cash flow is presented here because management believes this is a commonly used measure of liquidity, indicative of cash available for debt repayment. The Company defines “free cash flow” as operating cash flow minus capital expenditures.
The Company’s free cash flow for the fourth quarter ended March 31, 2009 was $13.2 million, $3.6 million or 37.5% greater than free cash flow of $9.6 million generated in the fourth quarter ended March 31, 2008. This is composed of operating cash flow of $13.3 million less capital expenditures of $0.1 million. The improvement in free cash flow resulted from an improvement in working capital. For fiscal year 2009, free cash flow totaled $66.2 million, composed of operating cash flow of $66.7 million minus capital expenditures of $0.5 million. This compared to free cash flow for 2008 of $44.5 million, composed of operating cash flow of $45.0 million less capital expenditures of $0.5 million.
During the fourth fiscal quarter, the Company reached its previously stated goal of enhancing its liquidity position by using its free cash flow to accumulate a reserve of approximately $30 million. After reaching this goal, the Company resumed debt repayment. At March 31, 2009, the Company had cash on hand of $35.2 million. At March 31, 2009, total indebtedness was reduced to $378.3 million, reflecting $6.0 million of repayments during the quarter.
Conference Call
The Company will host a conference call today at 8:30 a.m. EDT. To access the call, listeners calling from within North America may dial 866-362-4820 at least 15 minutes prior to the start of the call. To access the call from outside North America, callers should dial 617-597-5345. The conference passcode is “prestige”. The Company will provide a live internet webcast as well as an archived replay, which can be accessed from the Investor Relations page of http://prestigebrandsinc.com. Telephonic replays will be available for two weeks following the completion of the call and can be accessed at 888-286-8010 with North America, and at 617-801-6888 from outside North America. The passcode is 46204340.
About Prestige Brands Holdings, Inc.
Located in Irvington, New York, Prestige Brands Holdings, Inc. is a marketer and distributor of brand name over-the-counter products, personal care and household products sold throughout the U.S., Canada and certain international markets. Key brands include Compound W(R) wart remover, Chloraseptic(R) sore throat and allergy treatment, New-Skin(R) liquid bandage, Clear eyes(R) and Murine(R) eye and ear care products, Little Remedies(R) pediatric over-the-counter products, Cutex(R) nail polish remover, Comet(R) and Spic and Span(R) household products, and other well-known brands.
Forward-Looking Statements
Note: This news release contains "forward-looking statements" within the meaning of the federal securities laws and 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 "assumptions," "target," "guidance," "outlook," "plans," "projection," "may," "will," "would," "expect," "intend," "estimate," "anticipate," "believe, "potential," 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 outlook for Prestige Brands Holdings' market and its focus brands as well as prospects for the industry. 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. A discussion of factors that could cause results to vary is included in the Company's Annual Report on Form 10-K and other periodic and other reports filed with the Securities and Exchange Commission.
Contact: Dean Siegal
914-524-6819
Prestige Brands Holdings, Inc.
Consolidated Statements of Operations
(Unaudited)
| | | Three Months Ended March 31 | |
| (In thousands, except per share data) | | 2009 | | | 2008 | |
| Revenues | | | | | | |
| Net sales | | $ | 70,563 | | | $ | 80,096 | |
| Other revenues | | | 289 | | | | 337 | |
| Total revenues | | | 70,852 | | | | 80,433 | |
| | | | | | | | | |
| Cost of Sales | | | | | | | | |
| Cost of sales | | | 35,564 | | | | 39,221 | |
| Gross profit | | | 35,288 | | | | 41,212 | |
| | | | | | | | | |
| Operating Expenses | | | | | | | | |
| Advertising and promotion | | | 5,714 | | | | 6,290 | |
| General and administrative | | | 6,241 | | | | 7,375 | |
| Depreciation and amortization | | | 2,946 | | | | 2,754 | |
| Impairment of goodwill and intangible assets | | | 249,590 | | | | -- | |
| Total operating expenses | | | 264,491 | | | | 16,419 | |
| | | | | | | | | |
| Operating income (loss) | | | (229,203 | ) | | | 24,793 | |
| | | | | | | | | |
| Other (income) expense | | | | | | | | |
| Interest income | | | -- | | | | (151 | ) |
| Interest expense | | | 5,923 | | | | 8,936 | |
| Miscellaneous | | | -- | | | | (187 | ) |
| Total other (income) expense | | | 5,923 | | | | 8,598 | |
| | | | | | | | | |
| Income (loss) before income taxes | | | (235,126 | ) | | | 16,195 | |
| | | | | | | | | |
| Provision (benefit) for income taxes | | | (24,029 | ) | | | 5,844 | |
| Net income (loss) | | $ | (211,097 | ) | | $ | 10,351 | |
| | | | | | | | | |
| Basic earnings (loss) per share | | $ | (4.22 | ) | | $ | 0.21 | |
| Diluted earnings (loss) per share | | $ | (4.22 | ) | | $ | 0.21 | |
| | | | | | | | | |
Weighted average shares outstanding: Basic | | | 49,976 | | | | 49,842 | |
| Diluted | | | 49,976 | | | | 50,037 | |
Prestige Brands Holdings, Inc.
Consolidated Statements of Operations
(Unaudited)
| | | Year Ended March 31 | |
| (In thousands, except per share data) | | 2009 | | | 2008 | | | 2007 | |
| Revenues | | | | | | | | | |
| Net sales | | $ | 310,505 | | | $ | 324,621 | | | $ | 316,847 | |
| Other revenues | | | 2,210 | | | | 1,982 | | | | 1,787 | |
| Total revenues | | | 312,715 | | | | 326,603 | | | | 318,634 | |
| | | | | | | | | | | | | |
| Cost of Sales | | | | | | | | | | | | |
| Cost of sales | | | 149,445 | | | | 158,096 | | | | 153,147 | |
| Gross profit | | | 163,270 | | | | 168,507 | | | | 165,487 | |
| | | | | | | | | | | | | |
| Operating Expenses | | | | | | | | | | | | |
| Advertising and promotion | | | 38,099 | | | | 34,665 | | | | 32,005 | |
| General and administrative | | | 31,888 | | | | 31,414 | | | | 28,416 | |
| Depreciation and amortization | | | 11,219 | | | | 11,014 | | | | 10,384 | |
| Impairment of goodwill and intangible assets | | | 249,590 | | | | -- | | | | -- | |
| Total operating expenses | | | 330,796 | | | | 77,093 | | | | 70,805 | |
| | | | | | | | | | | | | |
| Operating income (loss) | | | (167,526 | ) | | | 91,414 | | | | 94,682 | |
| | | | | | | | | | | | | |
| Other (income) expense | | | | | | | | | | | | |
| Interest income | | | (143 | ) | | | (675 | ) | | | (972 | ) |
| Interest expense | | | 28,579 | | | | 38,068 | | | | 40,478 | |
| Miscellaneous | | | -- | | | | (187 | ) | | | -- | |
| Total other (income) expense | | | 28,436 | | | | 37,206 | | | | 39,506 | |
| | | | | | | | | | | | | |
| Income (loss) before income taxes | | | (195,962 | ) | | | 54,208 | | | | 55,176 | |
| | | | | | | | | | | | | |
| Provision (benefit) for income taxes | | | (9,186 | ) | | | 20,289 | | | | 19,098 | |
| Net income (loss) | | $ | (186,776 | ) | | $ | 33,919 | | | $ | 36,078 | |
| | | | | | | | | | | | | |
| Basic earnings (loss) per share | | $ | (3.74 | ) | | $ | 0.68 | | | $ | 0.73 | |
| Diluted earnings (loss) per share | | $ | (3.74 | ) | | $ | 0.68 | | | $ | 0.72 | |
| | | | | | | | | | | | | |
Weighted average shares outstanding: Basic | | | 49,935 | | | | 49,751 | | | | 49,460 | |
| Diluted | | | 49,935 | | | | 50,039 | | | | 50,020 | |
Prestige Brands Holdings, Inc.
Consolidated Balance Sheets
(Unaudited)
| (In thousands) | | March 31 | |
| Assets | | 2009 | | | 2008 | |
| Current assets | | | | | | |
| Cash and cash equivalents | | $ | 35,181 | | | $ | 6,078 | |
| Accounts receivable | | | 36,025 | | | | 44,219 | |
| Inventories | | | 26,977 | | | | 29,696 | |
| Deferred income tax assets | | | 4,022 | | | | 3,066 | |
| Prepaid expenses and other current assets | | | 1,358 | | | | 2,316 | |
| Total current assets | | | 103,563 | | | | 85,375 | |
| | | | | | | | | |
| Property and equipment | | | 1,367 | | | | 1,433 | |
| Goodwill | | | 114,240 | | | | 308,915 | |
| Intangible assets | | | 577,593 | | | | 646,683 | |
| Other long-term assets | | | 4,618 | | | | 6,750 | |
| | | | | | | | | |
| Total Assets | | $ | 801,381 | | | $ | 1,049,156 | |
| | | | | | | | | |
| Liabilities and Stockholders’ Equity | | | | | | | | |
| Current liabilities | | | | | | | | |
| Accounts payable | | $ | 18,050 | | | $ | 20,539 | |
| Accrued interest payable | | | 5,371 | | | | 5,772 | |
| Other accrued liabilities | | | 7,255 | | | | 8,030 | |
| Current portion of long-term debt | | | 3,550 | | | | 3,550 | |
| Total current liabilities | | | 34,226 | | | | 37,891 | |
| | | | | | | | | |
| Long-term debt | | | 374,787 | | | | 407,675 | |
| Other long-term liabilities | | | -- | | | | 2,377 | |
| Deferred income tax liabilities | | | 97,983 | | | | 122,140 | |
| | | | | | | | | |
| Total Liabilities | | | 506,996 | | | | 570,083 | |
| | | | | | | | | |
| Stockholders’ Equity | | | | | | | | |
| Preferred stock - $0.01 par value | | | | | | | | |
Authorized – 5,000 shares | | | | | | | | |
Issued and outstanding – None | | | -- | | | | -- | |
| Common stock - $0.01 par value | | | | | | | | |
Authorized – 250,000 shares | | | | | | | | |
Issued – 50,060 shares at March 31, 2009 and 2008 | | | 501 | | | | 501 | |
| Additional paid-in capital | | | 382,803 | | | | 380,364 | |
Treasury stock, at cost – 63 shares and 59 shares at March 31, 2009 and 2008, respectively | | | (63 | ) | | | (47 | ) |
| Accumulated other comprehensive income (loss) | | | (1,334 | ) | | | (999 | ) |
| Retained earnings (deficit) | | | (87,522 | ) | | | 99,254 | |
| Total stockholders’ equity | | | 294,385 | | | | 479,073 | |
| | | | | | | | | |
| Total Liabilities and Stockholders’ Equity | | $ | 801,381 | | | $ | 1,049,156 | |
Prestige Brands Holdings, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
| | | Year Ended March 31 | |
| | | 2009 | | | 2008 | | | 2007 | |
| (In thousands) | | | | | | | | | |
| Operating Activities | | | | | | | | | |
| Net income (loss) | | $ | (186,776 | ) | | $ | 33,919 | | | $ | 36,078 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | | | | | | | | | | |
| Depreciation and amortization | | | 11,219 | | | | 11,014 | | | | 10,384 | |
| Amortization of financing costs | | | 2,233 | | | | 3,007 | | | | 3,257 | |
| Impairment of goodwill and intangible assets | | | 249,590 | | | | -- | | | | -- | |
| Deferred income taxes | | | (19,955 | ) | | | 10,096 | | | | 9,662 | |
| Stock-based compensation costs | | | 2,439 | | | | 1,139 | | | | 655 | |
Changes in operating assets and liabilities, net of effects of purchases of businesses | | | | | | | | | | | | |
| Accounts receivable | | | 8,193 | | | | (9,052 | ) | | | 4,875 | |
| Inventories | | | 2,719 | | | | 477 | | | | 4,292 | |
| Prepaid expenses and other assets | | | 458 | | | | (381 | ) | | | (1,235 | ) |
| Accounts payable | | | (2,265 | ) | | | (975 | ) | | | (186 | ) |
| Other accrued liabilities | | | (1,176 | ) | | | (4,255 | ) | | | 4,117 | |
| Net cash provided by operating activities | | | 66,679 | | | | 44,989 | | | | 71,899 | |
| | | | | | | | | | | | | |
| Investing Activities | | | | | | | | | | | | |
| Purchases of equipment | | | (481 | ) | | | (488 | ) | | | (540 | ) |
| Purchases of intangible assets | | | -- | | | | (33 | ) | | | -- | |
| Business acquisition purchase price adjustments | | | (4,191 | ) | | | (16 | ) | | | 750 | |
| Purchases of businesses, net | | | -- | | | | -- | | | | (31,261 | ) |
| Net cash used for investing activities | | | (4,672 | ) | | | (537 | ) | | | (31,051 | ) |
| | | | | | | | | | | | | |
| Financing Activities | | | | | | | | | | | | |
| Repayment of notes | | | (32,888 | ) | | | (52,125 | ) | | | (35,280 | ) |
| Redemption of equity interests | | | (16 | ) | | | (7 | ) | | | (10 | ) |
| Net cash used for financing activities | | | (32,904 | ) | | | (52,132 | ) | | | (35,290 | ) |
| | | | | | | | | | | | | |
| Increase (decrease) in cash | | | 29,103 | | | | (7,680 | ) | | | 5,558 | |
| Cash - beginning of year | | | 6,078 | | | | 13,758 | | | | 8,200 | |
| | | | | | | | | | | | | |
| Cash - end of year | | $ | 35,181 | | | $ | 6,078 | | | $ | 13,758 | |
| | | | | | | | | | | | | |
Prestige Brands Holdings, Inc.
Consolidating Statement of Operations
(Unaudited)
| | | Three Months Ended March 31, 2009 | |
| | | Over-the- Counter | | | Household | | | Personal | | | | |
| (In Thousands) | | Healthcare | | | Cleaning | | | Care | | | Consolidated | |
| | | | | | | | | | | | | |
| Net sales | | $ | 39,788 | | | $ | 26,451 | | | $ | 4,324 | | | $ | 70,563 | |
| Other revenues | | | 4 | | | | 264 | | | | 21 | | | | 289 | |
| | | | | | | | | | | | | | | | | |
| Total revenues | | | 39,792 | | | | 26,715 | | | | 4,345 | | | | 70,852 | |
| Cost of sales | | | 15,792 | | | | 17,344 | | | | 2,428 | | | | 35,564 | |
| | | | | | | | | | | | | | | | | |
| Gross profit | | | 24,000 | | | | 9,371 | | | | 1,917 | | | | 35,288 | |
| Advertising and promotion | | | 4,545 | | | | 1,030 | | | | 139 | | | | 5,714 | |
| | | | | | | | | | | | | | | | | |
| Contribution margin | | $ | 19,455 | | | $ | 8,341 | | | $ | 1,778 | | | | 29,574 | |
| Other operating expenses | | | | | | | | | | | | | | | 9,187 | |
| Impairment of goodwill and intangible assets | | | | | | | | | | | | | | | 249,590 | |
| | | | | | | | | | | | | | | | | |
| Operating loss | | | | | | | | | | | | | | | (229,203 | ) |
| Other expenses | | | | | | | | | | | | | | | 5,923 | |
| Income tax benefit | | | | | | | | | | | | | | | (24,029 | ) |
| | | | | | | | | | | | | | | | | |
| Net loss | | | | | | | | | | | | | | $ | (211,097 | ) |
| | | Three Months Ended March 31, 2008 | |
| | | Over-the- Counter | | | Household | | | Personal | | | | |
| (In Thousands) | | Healthcare | | | Cleaning | | | Care | | | Consolidated | |
| | | | | | | | | | | | | |
| Net sales | | $ | 46,197 | | | $ | 29,386 | | | $ | 4,513 | | | $ | 80,096 | |
| Other revenues | | | | | | | 337 | | | | -- | | | | 337 | |
| | | | | | | | | | | | | | | | | |
| Total revenues | | | 46,197 | | | | 29,723 | | | | 4,513 | | | | 80,433 | |
| Cost of sales | | | 17,276 | | | | 19,147 | | | | 2,798 | | | | 39,221 | |
| | | | | | | | | | | | | | | | | |
| Gross profit | | | 28,921 | | | | 10,576 | | | | 1,715 | | | | 41,212 | |
| Advertising and promotion | | | 5,108 | | | | 1,009 | | | | 173 | | | | 6,290 | |
| | | | | | | | | | | | | | | | | |
| Contribution margin | | $ | 23,813 | | | $ | 9,567 | | | $ | 1,542 | | | | 34,922 | |
| Other operating expenses | | | | | | | | | | | | | | | 10,129 | |
| | | | | | | | | | | | | | | | | |
| Operating income | | | | | | | | | | | | | | | 24,793 | |
| Other expenses | | | | | | | | | | | | | | | 8,598 | |
| Provision for income taxes | | | | | | | | | | | | | | | 5,844 | |
| | | | | | | | | | | | | | | | | |
| Net income | | | | | | | | | | | | | | $ | 10,351 | |
Prestige Brands Holdings, Inc.
Consolidating Statement of Operations
(Unaudited)
| | | Year Ended March 31, 2009 | |
| | | Over-the- Counter | | | Household | | | Personal | | | | |
| | | Healthcare | | | Cleaning | | | Care | | | Consolidated | |
| (In Thousands) | | | | | | | | | | | | |
| Net sales | | $ | 176,878 | | | $ | 113,923 | | | $ | 19,704 | | | $ | 310,505 | |
| Other revenues | | | 97 | | | | 2,092 | | | | 21 | | | | 2,210 | |
| | | | | | | | | | | | | | | | | |
| Total revenues | | | 176,975 | | | | 116,015 | | | | 19,725 | | | | 312,715 | |
| Cost of sales | | | 63,459 | | | | 74,457 | | | | 11,529 | | | | 149,445 | |
| | | | | | | | | | | | | | | | | |
| Gross profit | | | 113,516 | | | | 41,558 | | | | 8,196 | | | | 163,270 | |
| Advertising and promotion | | | 29,695 | | | | 7,625 | | | | 779 | | | | 38,099 | |
| | | | | | | | | | | | | | | | | |
| Contribution margin | | $ | 83,821 | | | $ | 33,933 | | | $ | 7,417 | | | | 125,171 | |
| Other operating expenses | | | | | | | | | | | | | | | 43,107 | |
| Impairment of goodwill and intangibles | | | | | | | | | | | | | | | 249,590 | |
| | | | | | | | | | | | | | | | | |
| Operating loss | | | | | | | | | | | | | | | (167,526 | ) |
| Other expenses | | | | | | | | | | | | | | | 28,436 | |
| Income tax benefit | | | | | | | | | | | | | | | (9,186 | ) |
| | | | | | | | | | | | | | | | | |
| Net loss | | | | | | | | | | | | | | $ | (186,776 | ) |
| | | Year Ended March 31, 2008 | |
| | | Over-the- Counter | | | Household | | | Personal | | | | |
| (In Thousands) | | Healthcare | | | Cleaning | | | Care | | | Consolidated | |
| | | | | | | | | | | | | |
| Net sales | | $ | 183,641 | | | $ | 119,224 | | | $ | 21,756 | | | $ | 324,621 | |
| Other revenues | | | 51 | | | | 1,903 | | | | 28 | | | | 1,982 | |
| | | | | | | | | | | | | | | | | |
| Total revenues | | | 183,692 | | | | 121,127 | | | | 21,784 | | | | 326,603 | |
| Cost of sales | | | 69,344 | | | | 75,459 | | | | 13,293 | | | | 158,096 | |
| | | | | | | | | | | | | | | | | |
| Gross profit | | | 114,348 | | | | 45,668 | | | | 8,491 | | | | 168,507 | |
| Advertising and promotion | | | 26,188 | | | | 7,483 | | | | 994 | | | | 34,665 | |
| | | | | | | | | | | | | | | | | |
| Contribution margin | | $ | 88,160 | | | $ | 38,185 | | | $ | 7,497 | | | | 133,842 | |
| Other operating expenses | | | | | | | | | | | | | | | 42,428 | |
| | | | | | | | | | | | | | | | | |
| Operating income | | | | | | | | | | | | | | | 91,414 | |
| Other expenses | | | | | | | | | | | | | | | 37,206 | |
| Provision for income taxes | | | | | | | | | | | | | | | 20,289 | |
| | | | | | | | | | | | | | | | | |
| Net income | | | | | | | | | | | | | | $ | 33,919 | |
Prestige Brands Holdings, Inc.
Consolidating Statement of Operations
(Unaudited)
| | | Year Ended March 31, 2007 | |
| | | Over-the- Counter | | | Household | | | Personal | | | | |
| (In Thousands) | | Healthcare | | | Cleaning | | | Care | | | Consolidated | |
| | | | | | | | | | | | | |
| Net sales | | $ | 174,704 | | | $ | 117,249 | | | $ | 24,894 | | | $ | 316,847 | |
| Other revenues | | | -- | | | | 1,787 | | | | -- | | | | 1,787 | |
| | | | | | | | | | | | | | | | | |
| Total revenues | | | 174,704 | | | | 119,036 | | | | 24,894 | | | | 318,634 | |
| Cost of sales | | | 65,601 | | | | 73,002 | | | | 14,544 | | | | 153,147 | |
| | | | | | | | | | | | | | | | | |
| Gross profit | | | 109,103 | | | | 46,034 | | | | 10,350 | | | | 165,487 | |
| Advertising and promotion | | | 24,201 | | | | 6,679 | | | | 1,125 | | | | 32,005 | |
| | | | | | | | | | | | | | | | | |
| Contribution margin | | $ | 84,902 | | | $ | 39,355 | | | $ | 9,225 | | | | 133,482 | |
| Other operating expenses | | | | | | | | | | | | | | | 38,800 | |
| | | | | | | | | | | | | | | | | |
| Operating income | | | | | | | | | | | | | | | 94,682 | |
| Other expenses | | | | | | | | | | | | | | | 39,506 | |
| Provision for income taxes | | | | | | | | | | | | | | | 19,098 | |
| | | | | | | | | | | | | | | | | |
| Net income | | | | | | | | | | | | | | $ | 36,078 | |
Prestige Brands Holdings, Inc.
Reconciliation of Net Income to Net Income
Before Impairment of Goodwill and Intangibles
(Unaudited)
| | | Three Months Ended March 31 | | | Year Ended March 31 | |
| (In Thousands) | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| | | | | | | | | | | | | |
| Net income (loss) | | $ | (211,097 | ) | | $ | 10,351 | | | $ | (186,776 | ) | | $ | 33,919 | |
| | | | | | | | | | | | | | | | | |
| Adjustments: | | | | | | | | | | | | | | | | |
| Impairment of goodwill and intangibles | | | 249,590 | | | | -- | | | | 249,590 | | | | -- | |
| Income tax benefit | | | (29,511 | ) | | | -- | | | | (29,511 | ) | | | -- | |
| | | | 220,079 | | | | -- | | | | 220,079 | | | | -- | |
| | | | | | | | | | | | | | | | | |
| Net income before impairment of goodwill and intangibles | | $ | 8,982 | | | $ | 10,351 | | | $ | 33,303 | | | $ | 33,919 | |
| | | | | | | | | | | | | | | | | |
| Basic earnings per share on net income before impairment of goodwill and intangibles | | $ | 0.18 | | | $ | 0.21 | | | $ | 0.67 | | | $ | 0.68 | |
| | | | | | | | | | | | | | | | | |
| Diluted earnings per share on net income before impairment of goodwill and intangibles | | $ | 0.18 | | | $ | 0.21 | | | $ | 0.67 | | | $ | 0.68 | |
| | | | | | | | | | | | | | | | | |
| Weighted average shares outstanding: | | | | | | | | | | | | | | | | |
| Basic | | | 49,976 | | | | 49,842 | | | | 49,935 | | | | 49,751 | |
| Diluted | | | 50,059 | | | | 50,037 | | | | 50,043 | | | | 50,039 | |
| | | | | | | | | | | | | | | | | |
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