Prestige Consumer Healthcare (PBH) 8-K Prestige Brands Holdings, Inc. Reports Fourth Quarter and Fiscal 2010 Results

Exhibit 99.1

For Release on May 13, 2010 at 6:00am ET

Prestige Brands Holdings, Inc. Reports Fourth Quarter and Fiscal 2010 Results

Irvington, NY—May 13, 2010—Prestige Brands Holdings, Inc.(NYSE-PBH) today reported results for the fourth fiscal quarter and fiscal year ended March 31, 2010.

Revenues for the fourth fiscal quarter were $71.4 million, which were $2.8 million, or 4% greater than the fourth quarter of fiscal 2009. These results reflect revenue increases in the over-the-counter healthcare and household cleaning products segments, and a decline in the personal care products segment. Contributing to the over-the-counter healthcare results was an increase in other revenues which reflects royalty revenue received as a result of a legal settlement.

Reported net income for the fourth fiscal quarter was $3.3 million, or $0.07 per diluted share, compared to a loss of $211.1 million or ($4.22) per diluted share in the prior year comparable quarter. Excluding charges for the impairment of intangible assets and loss on extinguishment of debt, net income (adjusted) would have been $7.4 million or $0.15 per diluted share during the 2010 fourth quarter compared to $9.0 million or $0.18 per diluted share in the prior year comparable period.  Net income (adjusted) is a “non-GAAP financial measure.” A table is included with the financial statements at the end of this news release which reconciles net income (adjusted) to net income, the most directly comparable measure presented in accordance with generally accepted accounting principles.

The decline in net income (adjusted) from 2009 to 2010 was primarily due to increased advertising and promotion (A&P) and general and administrative (G&A) expenses.

Commenting on the results, Matthew Mannelly, President and CEO said, “We are pleased with our revenue growth for the fourth quarter. Our results reflect our commitment to investing in and growing our core OTC brands. Our focus will continue to be against these core brands as we build upon the fourth quarter momentum in fiscal year 2011. In addition, we successfully completed our debt refinancing which we expect to provide us with ample liquidity through 2018, and additional borrowing capacity should an appropriate acquisition opportunity arise.”

Results by Segment for Fourth Fiscal Quarter

Over-The-Counter Healthcare

Net revenues for the OTC segment were $42.6 million, $2.8 million or 7% greater than the prior year comparable period. Net sales were $39.5 million, 1% below last year’s net sales of $39.8 million. Increases in sales of Clear Eyes®, Murine®, Compound W®, Dermoplast® and The Doctor’s® NightGuard™ were offset by sales declines in Chloraseptic®, Little Remedies®, and the Allergen Block products. Other revenue increased compared to the prior year due to the favorable outcome of a legal dispute.

Household Cleaning Products

This segment reported net revenues of $27.0 million, $300 thousand greater than the prior year comparable period. Sales increases in the Spic and Span® and Chore Boy® brands were offset by a slight decline in the Comet® brand.

Personal Care Products

Net revenues for the personal care segment were $1.8 million, $300 thousand or 14% below last year’s fourth fiscal quarter. The sales decline was primarily due to decreases in sales of Cutex®.

Fiscal Year 2010

The Company reported total revenues of $302.0 million for the fiscal year ended March 31, 2010, slightly below fiscal 2009 total revenues of $303.1 million. Reported net income of $32.1 million, or $0.64 per diluted share for 2010, compared to a loss of $186.8 million, or ($3.74) per diluted share in 2009. Excluding charges for the impairment of intangible assets and loss on extinguishment of debt, and the effects of an increase in deferred tax liabilities related to the divestiture of the shampoo brands, net income (adjusted) was $37.2 million or $0.74 per diluted share in 2010, compared to $33.3 million or $0.67 per diluted share during 2009.  Net income (adjusted) is a “non-GAAP financial measure.” A table is included with the financial statements at the end of this news release which reconciles net income (adjusted) to net income, the most directly comparable measure presented in accordance with generally accepted accounting principles.

Free Cash Flow

Free cash flow is a “non-GAAP financial measure” and is presented here because management believes it is a commonly used measure of liquidity, indicative of cash available for debt repayment and acquisitions. The company defines “free cash flow” as operating cash flow minus capital expenditures.

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The company’s free cash flow for the fourth quarter ended March 31, 2010 was $8.7 million, a decrease of 34% from free cash flow of $13.2 million in the fourth fiscal quarter of 2009. The decrease in free cash flow is largely a result of payment of interest incurred by early retirement of certain debt in connection with the company’s recent refinancing and an increase in corporate tax receivables. For fiscal year 2010, free cash flow totaled $58.7 million, composed of operating cash flow of $59.4 million minus capital expenditures of $0.7 million. This compared to free cash flow of $66.2 million for fiscal year 2009, composed of operating cash flow of $66.7 million less capital expenditures of $0.5 million.

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 866-730-5764 at least 15 minutes prior to the start of the call.  To access the call from outside North America, callers should dial 857-350-1588.  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 within North America, and at 617-801-6888 from outside North America.  The passcode is 98000111.

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 healthcare, household and personal care products sold throughout the U.S., Canada and certain international markets.  Key brands include Compound W® wart remover, Chloraseptic® sore throat and allergy treatment, New-Skin® liquid bandage, Clear Eyes® and Murine® eye and ear care products, The Doctor’s® NightGuard™ dental protector, Little Remedies® pediatric over-the-counter products, Cutex® nail polish remover, Comet® and Spic and Span® 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

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terminology.  The "forward-looking statements" include, without limitation, statements regarding the liquidity and borrowing capacity of Prestige Brands Holdings.  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

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Prestige Brands Holdings, Inc.

Consolidated Statements of Operations

(Unaudited)

	Three Months Ended March 31
(In thousands, except per share data)	2010		2009
Revenues
Net sales	$	67,791	$	68,355
Other revenues		3,591		289
Total revenues		71,382		68,644
Cost of Sales
Cost of sales		35,917		34,407
Gross profit		35,465		34,237
Operating Expenses
Advertising and promotion		6,591		5,648
General and administrative		8,108		6,241
Depreciation and amortization		2,771		2,497
Impairment of goodwill and intangible assets		2,751		249,285
Total operating expenses		20,221		263,671
Operating income (loss)		15,244		(229,434	)
Other (income) expense
Interest income		-		-
Interest expense		6,082		5,923
Loss on extinguishment of debt		2,656		-
Miscellaneous		-		-
Total other expense		8,738		5,923
Income (loss) from continuing operations before
income taxes		6,506		(235,357	)
Provision (benefit) for income taxes		3,255		(24,117	)
Income (loss) from continuing operations		3,251		(211,240	)
Discontinued Operations
Income from discontinued operations, net of
income tax		36		143
Net income (loss)		3,287		(211,097	)
Basic earnings (loss) per share:
Income (loss) from continuing operations	$	0.06	$	(4.23	)
Net income (loss)	$	0.07	$	(4.22	)
Diluted earnings (loss) per share:
Income (loss) from continuing operations	$	0.06	$	(4.23	)
Net Income (loss)	$	0.07	$	(4.22	)
Weighted average shares outstanding:
Basic		50,030		49,976
Diluted		50,105		49,976

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Prestige Brands Holdings, Inc.

Consolidated Statements of Operations

(Unaudited)

	Year Ended March 31
(In thousands, except per share data)	2010			2009			2008
Revenues
Net sales	$	296,922		$	300,937		$	313,125
Other revenues		5,101			2,210			1,982
Total revenues		302,023			303,147			315,107
Cost of Sales
Cost of sales		144,587			144,196			151,811
Gross profit		157,436			158,951			163,296
Operating Expenses
Advertising and promotion		31,236			37,777			34,243
General and administrative		34,195			31,888			31,414
Depreciation and amortization		10,552			9,423			9,219
Impairment of goodwill and intangible assets		2,751			249,285			-
Total operating expenses		78,734			328,373			74,876
Operating income (loss)		78,702			(169,422	)		88,420
Other (income) expense
Interest income		(1	)		(143	)		(675	)
Interest expense		22,936			28,579			38,068
Loss on extinguishment of debt		2,656			-			-
Miscellaneous		-			-			(187	)
Total other expense		25,591			28,436			37,206
Income (loss) from continuing operations before
income taxes		53,111			(197,858	)		51,214
Provision (benefit) for income taxes		21,849			(9,905	)		19,168
Income (loss) from continuing operations		31,262			(187,953	)		32,046
Discontinued Operations
Income from discontinued operations, net of
income tax		696			1,177			1,873
Gain on sale of discontinued operations, net of income tax		157			-			-
Net income (loss)		32,115			(186,776	)		33,919
Basic earnings (loss) per share:
Income (loss) from continuing operations	$	0.63		$	(3.76	)	$	0.64
Net income (loss)	$	0.64		$	(3.74	)	$	0.68
Diluted earnings (loss) per share:
Income (loss) from continuing operations	$	0.62		$	(3.76	)	$	0.64
Net Income (loss)	$	0.64		$	(3.74	)	$	0.68
Weighted average shares outstanding:
Basic		50,013			49,935			49,751
Diluted		50,085			49,935			50,039

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Prestige Brands Holdings. Inc.

Consolidated Balance Sheets

(Unaudited)

(In thousands)	March 31
	2010			2009
Assets
Current assets
Cash and cash equivalents	$	41,097		$	35,181
Accounts receivable		30,621			36,025
Inventories		29,162			25,939
Deferred income tax assets		6,353			4,022
Prepaid expenses and other current assets		4,917			1,358
Current assets of discontinued operations		-			1,038
Total current assets		112,150			103,563
Property and equipment		1,396			1,367
Goodwill		111,489			114,240
Intangible assets		559,229			569,137
Other long-term assets		7,148			4,602
Long-term assets of discontinued operations		-			8,472
Total Assets		791,412			801,381
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	12,771		$	15,898
Accrued interest payable		1,561			5,371
Other accrued liabilities		11,733			9,407
Current portion of long-term debt		29,587			3,550
Total current liabilities		55,652			34,226
Long-term debt
Principal amount		298,500			374,787
Less unamortized discount		3,943			-
Long-term debt less unamortized discount		294,557			374,787
Deferred income tax liabilities		112,144			97,983
Total Liabilities		462,353			506,996
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 – 50,154 shares at March 31, 2010 and 50,060 at March  2009		502			501
Additional paid-in capital		384,027			382,803
Treasury stock, at cost – 124 shares at
March 31, 2010 and 2009, respectively		(63	)		(63	)
Accumulated other comprehensive income (loss)		-			(1,334	)
Retained earnings (deficit)		(55,407	)		(87,522	)
Total Stockholders’ Equity		329,059			294,385
Total Liabilities and Stockholders’ Equity		791,412			801,381

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Prestige Brands Holding, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

	Year Ended March 31
(In thousands)	2010			2009			2008
Operating Activities
Net income (loss)	$	32,115		$	(186,776	)	$	33,919
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		11,450			11,219			11,014
Gain on sale of discontinued operations		(253	)		-			-
Deferred income taxes		11,012			(19,955	)		10,096
Amortization of deferred financing costs		1,926			2,233			3,007
Impairment of goodwill and intangible assets		2,751			249,590			-
Stock-based compensation costs		2,085			2,439			1,139
Loss on extinguishment of debt		2,166			-			-
Changes in operating assets and liabilities
Accounts receivable		6,404			8,193			(9,052	)
Inventories		(3,351	)		2,719			477
Prepaid expenses and other current assets		(3,559	)		458			(381	)
Accounts payable		(3,127	)		(2,265	)		(975	)
Accrued liabilities		(192	)		(1,176	)		(4,255	)
Net cash provided by operating activities		59,427			66,679			44,989
Investing Activities
Purchases of equipment		(673	)		(481	)		(488	)
Proceeds from sale of discontinued operations		7,993			-			-
Purchases of intangible assets		-			-			(33	)
Business acquisition purchase price adjustments		-			(4,191	)		(16	)
Net cash provided by (used for) investing activities		7,320			(4,672	)		(537	)
Financing Activities
Proceeds from issuance of debt		296,046			-			-
Payment of deferred financing costs		(6,627	)		-			-
Repayment of long-term debt		(350,250	)		(32,888	)		(52,125	)
Purchase of common stock for treasury		-			(16	)		(7	)
Net cash used for financing activities		(60,831	)		(32,904	)		(52,132	)
Increase (decrease) in cash		5,916			29,103			(7,680	)
Cash - beginning of year		35,181			6,078			13,758
Cash - end of year	$	41,097		$	35,181		$	6,078

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Prestige Brands Holdings, Inc.

Consolidated Statements of Operations

(Unaudited)

                               Three Months Ended March 31, 2010

	Over-the- Counter Healthcare		Household Cleaning		Personal Care		Consolidated
(In thousands)
Net sales	$	39,512	$	26,526	$	1,753	$	67,791
Other revenues		3,121		446		24		3,591
Total revenues		42,633		26,972		1,777		71,382
Cost of sales		16,384		18,354		1,179		35,917
Gross profit		26,249		8,618		598		35,465
Advertising and promotion		4,956		1,579		56		6,591
Contribution margin	$	21,293	$	7,039	$	542		28,874
Other operating expenses								10,879
Impairment of goodwill and intangible assets								2,751
Operating income								15,244
Other expenses								8,738
Provision for income taxes								3,255
Income from continuing operations								3,251
Income from discontinued operations, net of income tax								36
Net Income							$	3,287

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Prestige Brands Holdings, Inc.

Consolidated Statements of Operations

(Unaudited)

                          Three Months Ended March 31, 2009

		Over-the- Counter Healthcare		Household Cleaning		Personal Care		Consolidated
(In thousands)
Net sales		$	39,788	$	26,451	$	2,116	$	68,355
Other revenues			4		264		21		289
Total revenues			39,792		26,715		2,137		68,644
Cost of sales			15,792		17,344		1,271		34,407
Gross profit			24,000		9,371		866		34,237
Advertising and promotion	��		4,545		1,030		73		5,648
Contribution margin		$	19,455	$	8,341	$	793		28,589
Other operating expenses									8,738
Impairment of goodwill and intangible assets									249,285
Operating loss									(229,434	)
Other expenses									5,923
Income tax benefit									(24,117	)
Loss from continuing operations									(211,240	)
Income from discontinued operations, net of income tax									143
Net loss								$	(211,097	)

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Prestige Brands Holdings, Inc.

Consolidated Statements of Operations

(Unaudited)

	Year Ended March 31, 2010
	Over-the- Counter Healthcare		Household Cleaning		Personal Care		Consolidated
(In thousands)
Net sales	$	177,313	$	108,797	$	10,812	$	296,922
Other revenues		3,150		1,899		52		5,101
Total revenues		180,463		110,696		10,864		302,023
Cost of sales		66,049		72,118		6,420		144,587
Gross profit		114,414		38,578		4,444		157,436
Advertising and promotion		24,220		6,659		357		31,236
Contribution margin	$	90,194	$	31,919	$	4,087		126,200
Other operating expenses								44,747
Impairment of goodwill and intangible assets								2,751
Operating income								78,702
Other expenses								25,591
Provision for income taxes								21,849
Income from continuing operations								31,262
Income from discontinued operations, net of income tax								696
Gain on sale of assets, net of income tax								157
Net Income							$	32,115

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Prestige Brands Holdings, Inc.

Consolidated Statements of Operations

(Unaudited)

	Year Ended March 31, 2009
	Over-the- Counter Healthcare		Household Cleaning		Personal Care		Consolidated
(In thousands)
Net sales	$	176,878	$	113,923	$	10,136	$	300,937
Other revenues		97		2,092		21		2,210
Total revenues		176,975		116,015		10,157		303,147
Cost of sales		63,459		74,457		6,280		144,196
Gross profit		113,516		41,558		3,877		158,951
Advertising and promotion		29,695		7,625		457		37,777
Contribution margin	$	83,821	$	33,933	$	3,420		121,174
Other operating expenses								41,311
Impairment of goodwill and intangible assets								249,285
Operating loss								(169,422	)
Other expenses								28,436
Income tax benefit								(9,905	)
Loss from continuing operations								(187,953	)
Income from discontinued operations, net of income tax								1,177
Net loss							$	(186,776	)

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Prestige Brands Holdings, Inc.

Consolidated Statements of Operations

(Unaudited)

	Year Ended March 31, 2008
	Over-the- Counter Healthcare		Household Cleaning		Personal Care		Consolidated
(In thousands)
Net sales	$	183,641	$	119,224	$	10,260	$	313,125
Other revenues		51		1,903		28		1,982
Total revenues		183,692		121,127		10,288		315,107
Cost of sales		69,344		75,459		7,008		151,811
Gross profit		114,348		45,668		3,280		163,296
Advertising and promotion		26,188		7,483		572		34,243
Contribution margin	$	88,160	$	38,185	$	2,708		129,053
Other operating expenses								40,633
Impairment of goodwill and intangible assets								-
Operating income								88,420
Other expenses								37,206
Provision for income taxes								19,168
Income from continuing operations								32,046
Income from discontinued operations, net of income tax								1,873
Net Income							$	33,919

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Prestige Brands Holdings, Inc.

Reconciliation of Net Income to Adjusted Net Income

(Unaudited)

	Three Months Ended March 31						Year Ended March 31
(In thousands)	2010			2009			2010			2009
Net income (loss)	$	3,287		$	(211,097	)	$	32,115		$	(186,776	)
Adjustments:
Loss on extinguishment of debt		2,656			-			2,656			-
Impairment of goodwill and intangibles		2,751			249,590			2,751			249,590
Increase in deferred tax liability related to
the divestiture of the shampoo brands		-			-			931			-
Income tax benefit		(1,261	)		(29,511	)		(1,261	)		(29,511	)
		4,146			220,079			5,077			220,079
Adjusted net income	$	7,433		$	8,982		$	37,192		$	33,303
Basic earnings per share on adjusted
net income	$	0.15		$	0.18		$	0.74		$	0.67
Diluted earnings per share on adjusted
net income	$	0.15		$	0.18		$	0.74		$	0.67
Weighted average shares outstanding:
Basic		50,030			49,976			50,013			49,935
Diluted		50,105			49,976			50,085			49,935

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