Cover Page
Cover Page - shares | 3 Months Ended | |
Jun. 30, 2024 | Aug. 02, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-32433 | |
Entity Registrant Name | PRESTIGE CONSUMER HEALTHCARE INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-1297589 | |
Entity Address, Address Line One | 660 White Plains Road | |
Entity Address, City or Town | Tarrytown | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10591 | |
City Area Code | 914 | |
Local Phone Number | 524-6800 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | PBH | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 49,557,371 | |
Entity Central Index Key | 0001295947 | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Year Focus | 2025 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues | ||
Total revenues | $ 267,142 | $ 279,309 |
Cost of Sales | ||
Cost of sales excluding depreciation | 118,697 | 122,654 |
Cost of sales depreciation | 2,423 | 1,982 |
Cost of sales | 121,120 | 124,636 |
Gross profit | 146,022 | 154,673 |
Operating Expenses | ||
Advertising and marketing | 39,365 | 36,231 |
General and administrative | 28,910 | 27,687 |
Depreciation and amortization | 5,701 | 5,561 |
Total operating expenses | 73,976 | 69,479 |
Operating income | 72,046 | 85,194 |
Other expense | ||
Interest expense, net | 13,137 | 17,719 |
Other expense (income), net | 496 | (1,238) |
Total other expense, net | 13,633 | 16,481 |
Income before income taxes | 58,413 | 68,713 |
Provision for income taxes | 9,345 | 15,437 |
Net income | $ 49,068 | $ 53,276 |
Earnings per share: | ||
Basic (in USD per share) | $ 0.98 | $ 1.07 |
Diluted (in USD per share) | $ 0.98 | $ 1.06 |
Weighted average shares outstanding: | ||
Basic (in shares) | 49,886 | 49,767 |
Diluted (in shares) | 50,267 | 50,196 |
Comprehensive income, net of tax: | ||
Currency translation adjustments | $ 3,160 | $ (646) |
Total other comprehensive income (loss) | 3,160 | (646) |
Comprehensive income | 52,228 | 52,630 |
Net sales | ||
Revenues | ||
Total revenues | 266,835 | 279,299 |
Other revenues | ||
Revenues | ||
Total revenues | $ 307 | $ 10 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Current assets | ||
Cash and cash equivalents | $ 34,256 | $ 46,469 |
Accounts receivable, net of allowance of $18,684 and $16,377, respectively | 171,695 | 176,775 |
Inventories | 152,040 | 138,717 |
Prepaid expenses and other current assets | 10,750 | 13,082 |
Total current assets | 368,741 | 375,043 |
Property, plant and equipment, net | 75,409 | 76,507 |
Operating lease right-of-use assets | 9,997 | 11,285 |
Finance lease right-of-use assets, net | 877 | 1,541 |
Goodwill | 528,443 | 527,733 |
Intangible assets, net | 2,317,817 | 2,320,583 |
Other long-term assets | 6,232 | 5,725 |
Total Assets | 3,307,516 | 3,318,417 |
Current liabilities | ||
Accounts payable | 39,556 | 38,979 |
Accrued interest payable | 15,248 | 15,763 |
Operating lease liabilities, current portion | 3,654 | 4,658 |
Finance lease liabilities, current portion | 795 | 1,494 |
Other accrued liabilities | 54,862 | 56,154 |
Total current liabilities | 114,115 | 117,048 |
Long-term debt, net | 1,091,207 | 1,125,804 |
Deferred income tax liabilities | 409,085 | 403,596 |
Long-term operating lease liabilities, net of current portion | 7,055 | 7,528 |
Long-term finance lease liabilities, net of current portion | 149 | 172 |
Other long-term liabilities | 5,138 | 9,185 |
Total Liabilities | 1,626,749 | 1,663,333 |
Commitments and Contingencies — Note 14 | ||
Stockholders' Equity | ||
Preferred stock - $0.01 par value; Authorized - 5,000 shares; Issued and outstanding - None | 0 | 0 |
Common stock - $0.01 par value; Authorized - 250,000 shares; Issued - 55,291 shares at September 30, 2023 and 54,857 shares at March 31, 2023 | 557 | 555 |
Additional paid-in capital | 572,846 | 567,448 |
Treasury stock, at cost - 6,164 shares at June 30, 2024 and 5,680 shares at March 31, 2024 | (251,566) | (219,621) |
Accumulated other comprehensive loss, net of tax | (31,335) | (34,495) |
Retained earnings | 1,390,265 | 1,341,197 |
Total Stockholders' Equity | 1,680,767 | 1,655,084 |
Total Liabilities and Stockholders' Equity | $ 3,307,516 | $ 3,318,417 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable, current | $ 18,684 | $ 16,377 |
Stockholders' Equity: | ||
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 55,717,000 | 55,501,000 |
Treasury stock (in shares) | 6,164,000 | 5,680,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Common stock, beginning balance (in shares) at Mar. 31, 2023 | 54,857,000 | |||||
Equity, beginning balance at Mar. 31, 2023 | $ 1,447,084 | $ 548 | $ 535,356 | $ (189,114) | $ (31,564) | $ 1,131,858 |
Treasury stock, beginning balance (in shares) at Mar. 31, 2023 | 5,165,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | $ 4,146 | 4,146 | ||||
Exercise of stock options (in shares) | 172,900 | 173,000 | ||||
Exercise of stock options | $ 7,028 | $ 2 | 7,026 | |||
Issuance of shares related to restricted stock (in shares) | 190,000 | |||||
Issuance of shares related to restricted stock | 0 | $ 2 | (2) | |||
Treasury share repurchases (in shares) | 515,000 | |||||
Treasury share repurchases | (30,593) | $ (30,593) | ||||
Net income | 53,276 | 53,276 | ||||
Comprehensive income | (646) | (646) | ||||
Common stock, ending balance (in shares) at Jun. 30, 2023 | 55,220,000 | |||||
Equity, ending balance at Jun. 30, 2023 | 1,480,295 | $ 552 | 546,526 | $ (219,707) | (32,210) | 1,185,134 |
Treasury stock, ending balance (in shares) at Jun. 30, 2023 | 5,680,000 | |||||
Common stock, beginning balance (in shares) at Mar. 31, 2024 | 55,501,000 | |||||
Equity, beginning balance at Mar. 31, 2024 | $ 1,655,084 | $ 555 | 567,448 | $ (219,621) | (34,495) | 1,341,197 |
Treasury stock, beginning balance (in shares) at Mar. 31, 2024 | 5,680,000 | 5,680,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | $ 3,425 | 3,425 | ||||
Exercise of stock options (in shares) | 38,300 | 38,000 | ||||
Exercise of stock options | $ 1,975 | $ 0 | 1,975 | |||
Issuance of shares related to restricted stock (in shares) | 178,000 | |||||
Issuance of shares related to restricted stock | 0 | $ 2 | (2) | |||
Treasury share repurchases (in shares) | 484,000 | |||||
Treasury share repurchases | (31,945) | $ (31,945) | ||||
Net income | 49,068 | 49,068 | ||||
Comprehensive income | 3,160 | 3,160 | ||||
Common stock, ending balance (in shares) at Jun. 30, 2024 | 55,717,000 | |||||
Equity, ending balance at Jun. 30, 2024 | $ 1,680,767 | $ 557 | $ 572,846 | $ (251,566) | $ (31,335) | $ 1,390,265 |
Treasury stock, ending balance (in shares) at Jun. 30, 2024 | 6,164,000 | 6,164,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Operating Activities | ||
Net income | $ 49,068 | $ 53,276 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 8,124 | 7,543 |
Loss on disposal of property and equipment | 5 | 0 |
Deferred and other income taxes | 612 | 4,272 |
Amortization of debt origination costs | 454 | 983 |
Stock-based compensation costs | 3,425 | 4,146 |
Non-cash operating lease cost | 1,706 | 1,244 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 6,368 | 5,632 |
Inventories | (13,048) | (7,711) |
Prepaid expenses and other current assets | 2,359 | (5,181) |
Accounts payable | 591 | (5,599) |
Accrued liabilities | (2,061) | (8,519) |
Operating lease liabilities | (1,883) | (1,745) |
Other | (944) | (254) |
Net cash provided by operating activities | 54,776 | 48,087 |
Investing Activities | ||
Purchases of property, plant and equipment | (1,152) | (1,477) |
Other | (978) | 3,800 |
Net cash (used in) provided by investing activities | (2,130) | 2,323 |
Financing Activities | ||
Term loan repayments | (35,000) | (30,000) |
Payments of finance leases | (720) | (699) |
Proceeds from exercise of stock options | 1,975 | 7,028 |
Fair value of shares surrendered as payment of tax withholding | (5,801) | (5,508) |
Repurchase of common stock | (25,976) | (25,000) |
Net cash used in financing activities | (65,522) | (54,179) |
Effects of exchange rate changes on cash and cash equivalents | 663 | (140) |
Decrease in cash and cash equivalents | (12,213) | (3,909) |
Cash and cash equivalents - beginning of period | 46,469 | 58,489 |
Cash and cash equivalents - end of period | 34,256 | 54,580 |
Interest paid | 13,670 | 17,582 |
Income taxes paid | $ 3,661 | $ 11,964 |
Business and Basis of Presentat
Business and Basis of Presentation | 3 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | Business and Basis of Presentation Nature of Business Prestige Consumer Healthcare Inc. (referred to herein as the “Company” or “we,” which reference shall, unless the context requires otherwise, be deemed to refer to Prestige Consumer Healthcare Inc. and all of its direct and indirect 100% owned subsidiaries on a consolidated basis) is engaged in the development, manufacturing, marketing, sales and distribution of over-the-counter (“OTC”) healthcare products to mass merchandisers, drug, food, dollar, convenience and club stores and e-commerce channels in North America (the United States and Canada) and in Australia and certain other international markets. Prestige Consumer Healthcare Inc. is a holding company with no operations and is also the parent guarantor of the senior credit facility and the senior notes described in Note 7 to these Condensed Consolidated Financial Statements. Economic Environment There has been economic uncertainty in the United States and globally due to several factors, including global supply chain constraints, rising interest rates, a high inflationary environment and geopolitical events. We expect economic conditions will continue to be highly volatile and uncertain, put pressure on prices and supply, and could affect demand for our products. We have continued to see changes in the purchasing patterns of our end customers, including a reduction in the frequency of visits to retailers and a shift in many markets to purchasing our products online. The volatile environment has impacted the supply of labor and raw materials and exacerbated rising input costs. We have and may continue to experience shortages, delays and backorders for certain ingredients and products, difficulty scheduling shipping for our products, as well as price increases from many of our suppliers for both shipping and product costs. Certain of our third-party manufacturers are currently having, and have had in the past, difficulty meeting demand, which is and has caused shortages of our products, particularly eye care products. These shortages negatively impacted our results of operations in 2024, and we expect further shortages may have a negative impact on our sales. In addition, labor shortages have impacted our manufacturing operations and could impact our ability to supply certain products to our customers. If conditions cause further disruption in the global supply chain, the availability of labor and materials or otherwise further increase costs, it may materially affect our operations and those of third parties on which we rely, including causing material disruptions in the supply and distribution of our products. The extent to which these conditions impact our results and liquidity will depend on future developments, which are highly uncertain and cannot be predicted, including global supply chain constraints, inflation, global conflicts and instability, and the potential for further outbreaks of severe illnesses. These effects could have a material adverse impact on our business, liquidity, capital resources, and results of operations and those of the third parties on which we rely. Basis of Presentation The unaudited Condensed Consolidated Financial Statements presented herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. All significant intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, these Condensed Consolidated Financial Statements include all adjustments, consisting of normal recurring adjustments, that are considered necessary for a fair statement of our consolidated financial position, results of operations and cash flows for the interim periods presented. Our fiscal year ends on March 31st of each year. References in these Condensed Consolidated Financial Statements or related notes to a year (e.g., 2025) mean our fiscal year ending or ended on March 31st of that year. Operating results for the three months ended June 30, 2024 are not necessarily indicative of results that may be expected for the fiscal year ending March 31, 2025. These unaudited Condensed Consolidated Financial Statements and related notes should be read in conjunction with our audited Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2024. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on our knowledge of current events and actions that we may undertake in the future, actual results could differ from those estimates. Our most significant estimates include those made in connection with the valuation of intangible assets, stock-based compensation, fair value of debt, sales returns and allowances, trade promotional allowances, inventory obsolescence, and accounting for income taxes and related uncertain tax positions. Recently Issued Accounting Pronouncements In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . The amendments in this update require that entities disclose, on an annual basis, specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. The amendments in this update also require disclosure, on an annual basis, of income taxes paid, disaggregated by federal, state and foreign taxes and disaggregated by individual jurisdictions in which income taxes paid are equal to or greater than five percent of total income taxes paid. In addition, the amendments in this update also require that income (or loss) before income taxes be disaggregated between domestic and foreign and income tax expense (or benefit) be disaggregated by federal, state and foreign. This ASU is effective for annual periods beginning after December 15, 2024. We are currently evaluating the impact that this ASU may have on our Consolidated Financial Statement disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . The amendments in this update intend to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. This ASU requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker, the addition of a category for other segment items by reportable segment, that all annual segment disclosures be disclosed in interim periods, and other related segment disclosures. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We are currently evaluating the impact that this ASU may have on our Consolidated Financial Statement disclosures. |
Inventories
Inventories | 3 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following: (In thousands) June 30, 2024 March 31, 2024 Components of Inventories Packaging and raw materials $ 20,124 $ 19,210 Work in process 1,253 636 Finished goods 130,663 118,871 Inventories $ 152,040 $ 138,717 |
Goodwill
Goodwill | 3 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill A reconciliation of the activity affecting goodwill by operating segment is as follows: (In thousands) North American OTC International OTC Consolidated Balance - March 31, 2024 Goodwill $ 711,452 $ 30,384 $ 741,836 Accumulated impairment loss (212,516) (1,587) (214,103) Balance - March 31, 2024 498,936 28,797 527,733 Adjustment related to acquisition — 309 309 Effects of foreign currency exchange rates — 401 401 Balance - June 30, 2024 Goodwill 711,452 31,094 742,546 Accumulated impairment loss (212,516) (1,587) (214,103) Balance - June 30, 2024 $ 498,936 $ 29,507 $ 528,443 At February 29, 2024, the date of our annual impairment review, the estimated fair value exceeded the carrying value for all reporting units and accordingly, no impairment charge was taken. The estimates and assumptions made in assessing the fair value of our reporting units and the valuation of the underlying assets and liabilities are inherently subject to significant uncertainties related to future sales, gross margins, and advertising and marketing expenses, which can be impacted by increases in competition, changing consumer preferences, technical advances, supply chain constraints, labor shortages, and inflation. The discount rate assumption may be influenced by such factors as changes in interest rates and rates of inflation, which can have an impact on the determination of fair value. If these assumptions are adversely affected, we may be required to record impairment charges in the future. As of June 30, 2024, we determined no events have occurred that would indicate potential impairment of goodwill. |
Intangible Assets, net
Intangible Assets, net | 3 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, net | Intangible Assets, net A reconciliation of the activity affecting intangible assets, net is as follows: (In thousands) Indefinite- Finite-Lived Totals Gross Carrying Amounts Balance — March 31, 2024 $ 2,167,162 $ 411,258 $ 2,578,420 Effects of foreign currency exchange rates 1,809 468 2,277 Balance — June 30, 2024 $ 2,168,971 $ 411,726 $ 2,580,697 Accumulated Amortization Balance — March 31, 2024 $ — $ 257,837 $ 257,837 Additions — 4,954 4,954 Effects of foreign currency exchange rates — 89 89 Balance — June 30, 2024 $ — $ 262,880 $ 262,880 Intangible assets, net - June 30, 2024 $ 2,168,971 $ 148,846 $ 2,317,817 Amortization expense was $5.0 million for both the three months ended June 30, 2024 and 2023. Finite-lived intangible assets are expected to be amortized over their estimated useful life, which ranges from a period of 10 to 24 years, and the estimated amortization expense for each of the five succeeding years and the periods thereafter is as follows (in thousands): (In thousands) Year Ending March 31, Amount 2025 (remaining nine months ended March 31, 2025) $ 13,204 2026 16,213 2027 14,621 2028 12,285 2029 12,285 Thereafter 80,238 $ 148,846 At February 29, 2024, the date of our annual impairment review, the estimated fair value exceeded the carrying value for all intangible assets and, accordingly, no impairment charge was taken. The assumptions subject to significant uncertainties in the impairment analysis include the discount rate utilized in the analysis, as well as future sales, gross margins, and advertising and marketing expenses. The discount rate assumption may be influenced by such factors as changes in interest rates and rates of inflation, which can have an impact on the determination of fair value. Additionally, should the related fair values of intangible assets be adversely affected as a result of declining sales or margins caused by competition, changing consumer needs or preferences, technological advances, changes in advertising and marketing expenses, or the potential impacts of supply chain constraints, labor shortages, or inflation, we may be required to record impairment charges in the future. As of June 30, 2024, no events have occurred that would indicate potential impairment of intangible assets. |
Leases
Leases | 3 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Leases | Leases We lease real estate and equipment for use in our operations. The components of lease expense for the three months ended June 30, 2024 and 2023 were as follows: Three Months Ended June 30, (In thousands) 2024 2023 Finance lease cost: Amortization of right-of-use assets $ 665 $ 665 Interest on lease liabilities 9 30 Operating lease cost 1,704 1,624 Short term lease cost 32 33 Variable lease cost 16,423 16,456 Total net lease cost $ 18,833 $ 18,808 As of June 30, 2024, the maturities of lease liabilities were as follows: (In thousands) Year Ending March 31, Operating Leases Finance Total 2025 (remaining nine months ending March 31, 2025) $ 3,348 $ 779 $ 4,127 2026 2,750 96 2,846 2027 2,214 80 2,294 2028 1,733 — 1,733 2029 374 — 374 Thereafter 1,597 — 1,597 Total undiscounted lease payments 12,016 955 12,971 Less amount of lease payments representing interest (1,307) (11) (1,318) Total present value of lease payments $ 10,709 $ 944 $ 11,653 The weighted average remaining lease term and weighted average discount rate were as follows: June 30, 2024 Weighted average remaining lease term (years) Operating leases 4.28 Finance leases 0.84 Weighted average discount rate Operating leases 4.77 % Finance leases 2.89 % |
Leases | Leases We lease real estate and equipment for use in our operations. The components of lease expense for the three months ended June 30, 2024 and 2023 were as follows: Three Months Ended June 30, (In thousands) 2024 2023 Finance lease cost: Amortization of right-of-use assets $ 665 $ 665 Interest on lease liabilities 9 30 Operating lease cost 1,704 1,624 Short term lease cost 32 33 Variable lease cost 16,423 16,456 Total net lease cost $ 18,833 $ 18,808 As of June 30, 2024, the maturities of lease liabilities were as follows: (In thousands) Year Ending March 31, Operating Leases Finance Total 2025 (remaining nine months ending March 31, 2025) $ 3,348 $ 779 $ 4,127 2026 2,750 96 2,846 2027 2,214 80 2,294 2028 1,733 — 1,733 2029 374 — 374 Thereafter 1,597 — 1,597 Total undiscounted lease payments 12,016 955 12,971 Less amount of lease payments representing interest (1,307) (11) (1,318) Total present value of lease payments $ 10,709 $ 944 $ 11,653 The weighted average remaining lease term and weighted average discount rate were as follows: June 30, 2024 Weighted average remaining lease term (years) Operating leases 4.28 Finance leases 0.84 Weighted average discount rate Operating leases 4.77 % Finance leases 2.89 % |
Other Accrued Liabilities
Other Accrued Liabilities | 3 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Other Accrued Liabilities | Other Accrued Liabilities Other accrued liabilities consist of the following: (In thousands) June 30, 2024 March 31, 2024 Accrued marketing costs $ 30,630 $ 24,053 Accrued compensation costs 6,216 12,221 Accrued broker commissions 1,662 1,309 Income taxes payable 189 2,569 Accrued professional fees 6,683 5,046 Accrued production costs 3,598 4,166 Other accrued liabilities 5,884 6,790 $ 54,862 $ 56,154 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consists of the following, as of the dates indicated: (In thousands, except percentages) June 30, 2024 March 31, 2024 2021 Senior Notes bearing interest at 3.750%, with interest payable on April 1 and October 1 of each year. The 2021 Senior Notes mature on April 1, 2031. $ 600,000 $ 600,000 2019 Senior Notes bearing interest at 5.125%, with interest payable on January 15 and July 15 of each year. The 2019 Senior Notes mature on January 15, 2028. 400,000 400,000 2012 Term B-5 Loans bearing interest at the Borrower's option at SOFR plus a margin of 2.00% plus a credit spread adjustment, due on July 1, 2028. 100,000 135,000 Long-term debt 1,100,000 1,135,000 Less: unamortized debt costs (8,793) (9,196) Long-term debt, net $ 1,091,207 $ 1,125,804 At June 30, 2024, we had no balance outstanding on the asset-based revolving credit facility originally entered into on January 31, 2012 (the "2012 ABL Revolver") and a borrowing capacity of $183.6 million. As of June 30, 2024, aggregate future principal payments required in accordance with the terms of the 2012 Term B-5 Loans under the term loan due 2028 originally entered into on January 31, 2012 (the "2012 Term Loan"), the 2012 ABL Revolver and the indentures governing the senior unsecured notes due 2031 (the "2021 Senior Notes") and the senior unsecured notes due 2028 (the "2019 Senior Notes") are as follows: (In thousands) Year Ending March 31, Amount 2025 (remaining nine months ending March 31, 2025) $ — 2026 — 2027 — 2028 400,000 2029 100,000 Thereafter 600,000 $ 1,100,000 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements For certain of our financial instruments, including cash, accounts receivable, accounts payable and other current liabilities, the carrying amounts approximate their respective fair values due to the relatively short maturity of these amounts. FASB Accounting Standards Codification ("ASC") 820, Fair Value Measurements , requires fair value to be determined based on the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market assuming an orderly transaction between market participants. ASC 820 established market (observable inputs) as the preferred source of fair value, to be followed by our assumptions of fair value based on hypothetical transactions (unobservable inputs) in the absence of observable market inputs. Based upon the above, the following fair value hierarchy was created: Level 1 - Quoted market prices for identical instruments in active markets; Level 2 - Quoted prices for similar instruments in active markets, as well as quoted prices for identical or similar instruments in markets that are not considered active; and Level 3 - Unobservable inputs developed by us using estimates and assumptions reflective of those that would be utilized by a market participant. The market values have been determined based on market values for similar instruments adjusted for certain factors. As such, the 2021 Senior Notes, the 2019 Senior Notes, and the 2012 Term B-5 Loans are measured in Level 2 of the above hierarchy. The summary below details the carrying amounts and estimated fair values of these instruments at June 30, 2024 and March 31, 2024. June 30, 2024 March 31, 2024 (In thousands) Carrying Value Fair Value Carrying Value Fair Value 2019 Senior Notes 400,000 388,000 400,000 389,000 2021 Senior Notes 600,000 521,250 600,000 522,750 2012 Term B-5 Loans 100,000 100,750 135,000 135,506 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity We are authorized to issue 250.0 million shares of common stock, $0.01 par value per share, and 5.0 million shares of preferred stock, $0.01 par value per share. The Board of Directors may direct the issuance of the undesignated preferred stock in one or more series and determine preferences, privileges and restrictions thereof. Each share of common stock has the right to one vote on all matters submitted to a vote of stockholders. The holders of common stock are also entitled to receive dividends whenever funds are legally available and when declared by the Board of Directors, subject to prior rights of holders of all classes of outstanding stock having priority rights as to dividends. No dividends have been declared or paid on our common stock through June 30, 2024. On May 6, 2024, the Company's Board of Directors authorized the repurchase of up to $300.0 million of the Company's issued and outstanding common stock. Under the authorization, the Company may purchase common stock utilizing open market transactions, transactions structured through investment banking institutions, in privately-negotiated transactions, by direct purchases of common stock or a combination of the foregoing in compliance with the applicable rules and regulations of the U.S. Securities and Exchange Commission. During the three months ended June 30, 2024 and 2023, we repurchased shares of our common stock and recorded them as treasury stock. Our share repurchases consisted of the following: Three Months Ended June 30, 2024 2023 Shares repurchased pursuant to the provisions of the various employee restricted stock awards: Number of shares 82,673 88,953 Average price per share $70.16 $61.92 Total amount repurchased $5.8 million $5.5 million Shares repurchased in conjunction with our share repurchase program: Number of shares 401,111 426,479 Average price per share $64.76 $58.62 Total amount repurchased $26.0 million $25.0 million |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss consisted of the following at June 30, 2024 and March 31, 2024: (In thousands) June 30, 2024 March 31, 2024 Components of Accumulated Other Comprehensive Loss Cumulative translation adjustment $ (32,060) $ (35,220) Unrecognized net gain on pension plans, net of tax of $(217) and $(217), respectively 725 725 Accumulated other comprehensive loss, net of tax $ (31,335) $ (34,495) |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended June 30, (In thousands, except per share data) 2024 2023 Numerator Net income $ 49,068 $ 53,276 Denominator Denominator for basic earnings per share — weighted average shares outstanding 49,886 49,767 Dilutive effect of unvested restricted stock units and options issued to employees and directors 381 429 Denominator for diluted earnings per share 50,267 50,196 Earnings per Common Share: Basic earnings per share $ 0.98 $ 1.07 Diluted earnings per share $ 0.98 $ 1.06 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation In connection with our initial public offering, the Board of Directors adopted the 2005 Long-Term Equity Incentive Plan (the “2005 Plan”), which provided for grants of up to a maximum of 5.0 million shares of restricted stock, stock options, restricted stock units ("RSUs") and other equity-based awards. In June 2014, the Board of Directors approved, and in July 2014, our stockholders ratified, an increase of an additional 1.8 million shares of our common stock for issuance under the 2005 Plan, among other changes. On June 23, 2020, the Board of Directors adopted the Prestige Consumer Healthcare Inc. 2020 Long-Term Incentive Plan (the “2020 Plan”). The 2020 Plan became effective on August 4, 2020, upon the approval of the 2020 Plan by our stockholders. On June 23, 2020, a total of 2,827,210 shares were available for issuance under the 2020 Plan (comprised of 2,000,000 new shares plus 827,210 shares that were unissued under the 2005 Plan). Since the 2020 Plan became effective, all equity awards have been made from the 2020 Plan, and the Company will not grant any additional awards under the 2005 Plan. At June 30, 2024, there were 1.6 million shares available for issuance under the 2020 Plan. The following table provides information regarding our stock-based compensation: Three Months Ended June 30, (In thousands) 2024 2023 Pre-tax stock-based compensation costs charged against income $ 3,425 $ 4,146 Income tax benefit recognized on compensation costs $ 438 $ 406 Total fair value of options and RSUs vested during the period $ 11,150 $ 11,226 Cash received from the exercise of stock options $ 1,975 $ 7,028 Tax benefits realized from tax deductions resulting from RSU issuances and stock option exercises $ 667 $ 876 At June 30, 2024, there were $4.5 million of unrecognized compensation costs related to unvested stock options under the 2005 Plan and the 2020 Plan, excluding an estimate for forfeitures which may occur. We expect to recognize such costs over a weighted average period of 2.4 years. At June 30, 2024, there were $15.9 million of unrecognized compensation costs related to unvested RSUs and performance stock units ("PSUs") under the 2005 Plan and the 2020 Plan, excluding an estimate for forfeitures which may occur. We expect to recognize such costs over a weighted average period of 2.3 years. Restricted Stock Units The fair value of the RSUs is determined using the closing price of our common stock on the date of the grant. A summary of the RSUs granted under the 2005 Plan and the 2020 Plan is presented below: RSUs Shares (in thousands) Weighted Three Months Ended June 30, 2023 Unvested at March 31, 2023 409.0 $ 47.17 Granted 142.8 61.73 Incremental performance shares 41.3 — Vested (189.3) 41.81 Forfeited (4.2) 54.92 Unvested at June 30, 2023 399.6 54.18 Vested at June 30, 2023 108.5 36.54 Three Months Ended June 30, 2024 Unvested at March 31, 2024 391.9 $ 54.43 Granted 131.9 69.87 Incremental performance shares 41.1 — Vested (177.7) 46.19 Forfeited (3.2) 58.16 Unvested at June 30, 2024 384.0 62.43 Vested at June 30, 2024 110.2 38.77 Options The fair value of each option award is estimated on the date of grant using the Black-Scholes Option Pricing Model that uses the assumptions presented below: Three Months Ended June 30, 2024 2023 Expected volatility 30.4% - 30.8% 30.2% - 31.6% Expected dividends $ — $ — Expected term in years 6.0 to 7.0 6.0 to 7.0 Risk-free rate 4.5% 3.6% Weighted average grant date fair value of options granted $ 27.97 $ 23.75 A summary of option activity under the 2005 Plan and the 2020 Plan is as follows: Options Shares (in thousands) Weighted Weighted Aggregate Three Months Ended June 30, 2023 Outstanding at March 31, 2023 1,081.0 $ 43.96 Granted 128.1 61.73 Exercised (172.9) 40.64 Forfeited (19.3) 54.86 Expired (1.7) 54.47 Outstanding at June 30, 2023 1,015.2 46.54 6.5 $ 13,369 Vested at June 30, 2023 700.1 42.70 5.4 $ 11,714 Three Months Ended June 30, 2024 Outstanding at March 31, 2024 728.0 $ 48.30 Granted 109.7 69.94 Exercised (38.3) 51.61 Forfeited (9.9) 59.11 Outstanding at June 30, 2024 789.5 51.01 6.6 $ 14,207 Vested at June 30, 2024 551.9 45.45 5.6 $ 12,915 The aggregate intrinsic value of options exercised during the three months ended June 30, 2024 was $0.5 million. |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Numerous countries have agreed to a statement in support of the Organization for Economic Cooperation and Development ("OECD") model rules that propose a global minimum tax rate of 15%. Certain countries have enacted legislation incorporating the agreed upon global minimum tax effective in 2024. This legislation has not and is not expected to have a material impact on our Consolidated Financial Statements. Income taxes are recorded in our quarterly financial statements based on our estimated annual effective income tax rate, subject to adjustments for discrete events, should they occur. The effective tax rates used in the calculation of income taxes were 16.0% and 22.5% for the three months ended June 30, 2024 and 2023, respectively. The decrease in the effective tax rate for the three months ended June 30, 2024 compared to the three months ended June 30, 2023 was due to discrete items, primarily pertaining to the release of a reserve for uncertain tax positions due to the statute of limitations expiring. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are involved from time to time in legal matters and other claims incidental to our business. We review outstanding claims and proceedings internally and with external counsel as necessary to assess the probability and amount of a potential loss. These assessments are re-evaluated at each reporting period and as new information becomes available to determine whether a contingency accrual should be established or if any existing contingency accrual should be adjusted. The actual cost of resolving a claim or proceeding ultimately may be substantially different than the amount of the recorded contingency accrual In addition, because it is not permissible under GAAP to establish a litigation contingency accrual until the loss is both probable and estimable, in some cases there may be insufficient time to establish a contingency accrual prior to the actual incurrence of the loss (upon verdict and judgment at trial, for example, or in the case of a quickly negotiated settlement). We believe the reasonably possible losses from resolution of routine legal matters and other claims incidental to our business will not have a material effect on our financial statements. |
Concentrations of Risk
Concentrations of Risk | 3 Months Ended |
Jun. 30, 2024 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Risk | Concentrations of Risk Our revenues are concentrated in the area of OTC Healthcare. We sell our products to mass merchandisers, drug, food, dollar, convenience and club stores and e-commerce channels. During the three months ended June 30, 2024 and 2023, approximately 40% and 41%, respectively, of our gross revenues were derived from our five top selling brands. Walmart accounted for approximately 20% and 21%, respectively, of our gross revenues for the three months ended June 30, 2024 and 2023. Amazon accounted for approximately 13% and 11%, respectively, of gross revenues for the three months ended June 30, 2024 and 2023. Our product distribution in the United States is managed by a third party through one primary distribution center in Clayton, Indiana. We also operate a manufacturing facility in Lynchburg, Virginia, which manufactures certain of our Fleet , Monistat and Summer's Eve products and a manufacturing facility in Victoria, Australia which manufactures some of our Hydralyte products. A natural disaster, such as tornado, earthquake, flood, or fire, at our distribution center or our own or a third-party manufacturing facility could damage our inventory and/or materially impair our ability to distribute our products to customers in a timely manner or at a reasonable cost. In addition, a serious disruption caused by performance or contractual issues with our third-party distribution manager, or labor shortages or contagious disease outbreaks or other public health emergencies at our distribution center or manufacturing facilities could also materially impact our product distribution. Any disruption could result in increased costs, expense and/or shipping times, and could harm our reputation and cause us to incur customer fees and penalties. We could also incur significantly higher costs and experience longer lead times should we be required to replace our distribution center, the third-party distribution manager or the manufacturing facilities. As a result, any serious disruption could have a material adverse effect on our business, financial condition and results of operations. At June 30, 2024, we had relationships with 113 third-party manufacturers. Of those, we had long-term contracts with 29 manufacturers that produced items that accounted for approximately 78% of gross sales for the three months ended June 30, 2024. At June 30, 2023, we had relationships with 135 third-party manufacturers. Of those, we had long-term contracts with 27 manufacturers that produced items that accounted for approximately 75% of gross sales for the three months ended June 30, 2023. One of our suppliers, a privately owned pharmaceutical manufacturer with whom we have a long-term supply agreement, produced products that accounted for more than 10% of our gross revenues for the three months ended June 30, 2024 and 2023. At June 30, 2024, this manufacturer accounted for approximately 23% of our gross revenues, while we accounted for a significant portion of their gross revenues over that time period. At June 30, 2023, this manufacturer accounted for approximately 22% of our gross revenues, while we accounted for a significant portion of their gross revenues over that time period. No other single third-party supplier produces products that account for 10% or more of our gross revenues. The fact that we do not have long-term contracts with certain manufacturers means that they could cease manufacturing our products at any time and for any reason or initiate arbitrary and costly price increases, which could have a material adverse effect on our business and results of operations. Although we are continually in the process of negotiating long-term contracts with certain key manufacturers, we may not be able to reach a timely agreement, which could have a material adverse effect on our business and results of operations. |
Business Segments
Business Segments | 3 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments Our current reportable segments consist of (i) North American OTC Healthcare and (ii) International OTC Healthcare. We evaluate the performance of our operating segments and allocate resources to these segments based primarily on contribution margin, which we define as gross profit less advertising and marketing expenses. The tables below summarize information about our reportable segments. Three Months Ended June 30, 2024 (In thousands) North American OTC International OTC Consolidated Total segment revenues* 232,316 $ 34,826 $ 267,142 Cost of sales 105,559 15,561 121,120 Gross profit 126,757 19,265 146,022 Advertising and marketing 33,753 5,612 39,365 Contribution margin $ 93,004 $ 13,653 $ 106,657 Other operating expenses 34,611 Operating income $ 72,046 * Intersegment revenues of $0.7 million were eliminated from the North American OTC Healthcare segment. Three Months Ended June 30, 2023 (In thousands) North American OTC International OTC Consolidated Total segment revenues* $ 246,143 $ 33,166 $ 279,309 Cost of sales 110,076 14,560 124,636 Gross profit 136,067 18,606 154,673 Advertising and marketing 31,401 4,830 36,231 Contribution margin $ 104,666 $ 13,776 $ 118,442 Other operating expenses 33,248 Operating income $ 85,194 * Intersegment revenues of $1.4 million were eliminated from the North American OTC Healthcare segment. The tables below summarize information about our segment revenues from similar product groups. Three Months Ended June 30, 2024 (In thousands) North American OTC International OTC Consolidated Analgesics $ 27,011 $ 1,282 $ 28,293 Cough & Cold 14,961 5,736 20,697 Women's Health 50,495 4,083 54,578 Gastrointestinal 44,287 13,728 58,015 Eye & Ear Care 43,319 4,811 48,130 Dermatologicals 31,603 1,752 33,355 Oral Care 17,674 3,100 20,774 Other OTC 2,966 334 3,300 Total segment revenues $ 232,316 $ 34,826 $ 267,142 Three Months Ended June 30, 2023 (In thousands) North American OTC International OTC Consolidated Analgesics $ 27,182 $ 842 $ 28,024 Cough & Cold 20,374 6,052 26,426 Women's Health 54,955 4,956 59,911 Gastrointestinal 44,681 12,910 57,591 Eye & Ear Care 39,471 4,021 43,492 Dermatologicals 34,678 1,338 36,016 Oral Care 21,726 3,022 24,748 Other OTC 3,076 25 3,101 Total segment revenues $ 246,143 $ 33,166 $ 279,309 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event Director Equity Grants Pursuant to the 2020 Plan, one of the independent members of the Board of Directors received a grant of 555 RSUs on August 5, 2024. The RSUs fully vest one year after receipt of the award, subject to the continued service of the director on such vesting date, and will be settled by delivery to the director of one share of our common stock for each vested RSU either (a) at the election of the director prior to the grant date, immediately upon vesting, or (b) promptly following the earliest of (i) such director's death, (ii) such director's separation from service or (iii) a change in control of the Company. Pursuant to the 2020 Plan, each of the independent members of the Board of Directors received a grant of 2,202 RSUs on August 6, 2024. The RSUs fully vest one year after receipt of the award, subject to the continued service of the director on such vesting date, and will be settled by delivery to each director of one share of our common stock for each vested RSU either (a) at the election of the director prior to the grant date, immediately upon vesting, or (b) promptly following the earliest of (i) such director's death, (ii) such director's separation from service or (iii) a change in control of the Company. |
Business and Basis of Present_2
Business and Basis of Presentation (Policies) | 3 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited Condensed Consolidated Financial Statements presented herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. All significant intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, these Condensed Consolidated Financial Statements include all adjustments, consisting of normal recurring adjustments, that are considered necessary for a fair statement of our consolidated financial position, results of operations and cash flows for the interim periods presented. Our fiscal year ends on March 31st of each year. References in these Condensed Consolidated Financial Statements or related notes to a year (e.g., 2025) mean our fiscal year ending or ended on March 31st of that year. Operating results for the three months ended June 30, 2024 are not necessarily indicative of results that may be expected for the fiscal year ending March 31, 2025. These unaudited Condensed Consolidated Financial Statements and related notes should be read in conjunction with our audited Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2024. |
Use of Estimates | Use of Estimates |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . The amendments in this update require that entities disclose, on an annual basis, specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. The amendments in this update also require disclosure, on an annual basis, of income taxes paid, disaggregated by federal, state and foreign taxes and disaggregated by individual jurisdictions in which income taxes paid are equal to or greater than five percent of total income taxes paid. In addition, the amendments in this update also require that income (or loss) before income taxes be disaggregated between domestic and foreign and income tax expense (or benefit) be disaggregated by federal, state and foreign. This ASU is effective for annual periods beginning after December 15, 2024. We are currently evaluating the impact that this ASU may have on our Consolidated Financial Statement disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . The amendments in this update intend to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. This ASU requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker, the addition of a category for other segment items by reportable segment, that all annual segment disclosures be disclosed in interim periods, and other related segment disclosures. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We are currently evaluating the impact that this ASU may have on our Consolidated Financial Statement disclosures. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: (In thousands) June 30, 2024 March 31, 2024 Components of Inventories Packaging and raw materials $ 20,124 $ 19,210 Work in process 1,253 636 Finished goods 130,663 118,871 Inventories $ 152,040 $ 138,717 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Reconciliation of the Activity Affecting Goodwill | A reconciliation of the activity affecting goodwill by operating segment is as follows: (In thousands) North American OTC International OTC Consolidated Balance - March 31, 2024 Goodwill $ 711,452 $ 30,384 $ 741,836 Accumulated impairment loss (212,516) (1,587) (214,103) Balance - March 31, 2024 498,936 28,797 527,733 Adjustment related to acquisition — 309 309 Effects of foreign currency exchange rates — 401 401 Balance - June 30, 2024 Goodwill 711,452 31,094 742,546 Accumulated impairment loss (212,516) (1,587) (214,103) Balance - June 30, 2024 $ 498,936 $ 29,507 $ 528,443 |
Intangible Assets, net (Tables)
Intangible Assets, net (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Reconciliation of the Activity Affecting Finite-Lived Intangible Assets | A reconciliation of the activity affecting intangible assets, net is as follows: (In thousands) Indefinite- Finite-Lived Totals Gross Carrying Amounts Balance — March 31, 2024 $ 2,167,162 $ 411,258 $ 2,578,420 Effects of foreign currency exchange rates 1,809 468 2,277 Balance — June 30, 2024 $ 2,168,971 $ 411,726 $ 2,580,697 Accumulated Amortization Balance — March 31, 2024 $ — $ 257,837 $ 257,837 Additions — 4,954 4,954 Effects of foreign currency exchange rates — 89 89 Balance — June 30, 2024 $ — $ 262,880 $ 262,880 Intangible assets, net - June 30, 2024 $ 2,168,971 $ 148,846 $ 2,317,817 |
Schedule of Reconciliation of the Activity Affecting Indefinite-Lived Intangible Assets | A reconciliation of the activity affecting intangible assets, net is as follows: (In thousands) Indefinite- Finite-Lived Totals Gross Carrying Amounts Balance — March 31, 2024 $ 2,167,162 $ 411,258 $ 2,578,420 Effects of foreign currency exchange rates 1,809 468 2,277 Balance — June 30, 2024 $ 2,168,971 $ 411,726 $ 2,580,697 Accumulated Amortization Balance — March 31, 2024 $ — $ 257,837 $ 257,837 Additions — 4,954 4,954 Effects of foreign currency exchange rates — 89 89 Balance — June 30, 2024 $ — $ 262,880 $ 262,880 Intangible assets, net - June 30, 2024 $ 2,168,971 $ 148,846 $ 2,317,817 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Finite-lived intangible assets are expected to be amortized over their estimated useful life, which ranges from a period of 10 to 24 years, and the estimated amortization expense for each of the five succeeding years and the periods thereafter is as follows (in thousands): (In thousands) Year Ending March 31, Amount 2025 (remaining nine months ended March 31, 2025) $ 13,204 2026 16,213 2027 14,621 2028 12,285 2029 12,285 Thereafter 80,238 $ 148,846 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense for the three months ended June 30, 2024 and 2023 were as follows: Three Months Ended June 30, (In thousands) 2024 2023 Finance lease cost: Amortization of right-of-use assets $ 665 $ 665 Interest on lease liabilities 9 30 Operating lease cost 1,704 1,624 Short term lease cost 32 33 Variable lease cost 16,423 16,456 Total net lease cost $ 18,833 $ 18,808 The weighted average remaining lease term and weighted average discount rate were as follows: June 30, 2024 Weighted average remaining lease term (years) Operating leases 4.28 Finance leases 0.84 Weighted average discount rate Operating leases 4.77 % Finance leases 2.89 % |
Schedule of Maturities of Operating Leases | As of June 30, 2024, the maturities of lease liabilities were as follows: (In thousands) Year Ending March 31, Operating Leases Finance Total 2025 (remaining nine months ending March 31, 2025) $ 3,348 $ 779 $ 4,127 2026 2,750 96 2,846 2027 2,214 80 2,294 2028 1,733 — 1,733 2029 374 — 374 Thereafter 1,597 — 1,597 Total undiscounted lease payments 12,016 955 12,971 Less amount of lease payments representing interest (1,307) (11) (1,318) Total present value of lease payments $ 10,709 $ 944 $ 11,653 |
Schedule of Maturities of Finance Leases | As of June 30, 2024, the maturities of lease liabilities were as follows: (In thousands) Year Ending March 31, Operating Leases Finance Total 2025 (remaining nine months ending March 31, 2025) $ 3,348 $ 779 $ 4,127 2026 2,750 96 2,846 2027 2,214 80 2,294 2028 1,733 — 1,733 2029 374 — 374 Thereafter 1,597 — 1,597 Total undiscounted lease payments 12,016 955 12,971 Less amount of lease payments representing interest (1,307) (11) (1,318) Total present value of lease payments $ 10,709 $ 944 $ 11,653 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Other Accrued Liabilities | Other accrued liabilities consist of the following: (In thousands) June 30, 2024 March 31, 2024 Accrued marketing costs $ 30,630 $ 24,053 Accrued compensation costs 6,216 12,221 Accrued broker commissions 1,662 1,309 Income taxes payable 189 2,569 Accrued professional fees 6,683 5,046 Accrued production costs 3,598 4,166 Other accrued liabilities 5,884 6,790 $ 54,862 $ 56,154 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consists of the following, as of the dates indicated: (In thousands, except percentages) June 30, 2024 March 31, 2024 2021 Senior Notes bearing interest at 3.750%, with interest payable on April 1 and October 1 of each year. The 2021 Senior Notes mature on April 1, 2031. $ 600,000 $ 600,000 2019 Senior Notes bearing interest at 5.125%, with interest payable on January 15 and July 15 of each year. The 2019 Senior Notes mature on January 15, 2028. 400,000 400,000 2012 Term B-5 Loans bearing interest at the Borrower's option at SOFR plus a margin of 2.00% plus a credit spread adjustment, due on July 1, 2028. 100,000 135,000 Long-term debt 1,100,000 1,135,000 Less: unamortized debt costs (8,793) (9,196) Long-term debt, net $ 1,091,207 $ 1,125,804 |
Schedule of Aggregate Future Principal Payments | As of June 30, 2024, aggregate future principal payments required in accordance with the terms of the 2012 Term B-5 Loans under the term loan due 2028 originally entered into on January 31, 2012 (the "2012 Term Loan"), the 2012 ABL Revolver and the indentures governing the senior unsecured notes due 2031 (the "2021 Senior Notes") and the senior unsecured notes due 2028 (the "2019 Senior Notes") are as follows: (In thousands) Year Ending March 31, Amount 2025 (remaining nine months ending March 31, 2025) $ — 2026 — 2027 — 2028 400,000 2029 100,000 Thereafter 600,000 $ 1,100,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carry Amounts and Fair Value Measurements | The summary below details the carrying amounts and estimated fair values of these instruments at June 30, 2024 and March 31, 2024. June 30, 2024 March 31, 2024 (In thousands) Carrying Value Fair Value Carrying Value Fair Value 2019 Senior Notes 400,000 388,000 400,000 389,000 2021 Senior Notes 600,000 521,250 600,000 522,750 2012 Term B-5 Loans 100,000 100,750 135,000 135,506 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Class of Treasury Stock | Our share repurchases consisted of the following: Three Months Ended June 30, 2024 2023 Shares repurchased pursuant to the provisions of the various employee restricted stock awards: Number of shares 82,673 88,953 Average price per share $70.16 $61.92 Total amount repurchased $5.8 million $5.5 million Shares repurchased in conjunction with our share repurchase program: Number of shares 401,111 426,479 Average price per share $64.76 $58.62 Total amount repurchased $26.0 million $25.0 million |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consisted of the following at June 30, 2024 and March 31, 2024: (In thousands) June 30, 2024 March 31, 2024 Components of Accumulated Other Comprehensive Loss Cumulative translation adjustment $ (32,060) $ (35,220) Unrecognized net gain on pension plans, net of tax of $(217) and $(217), respectively 725 725 Accumulated other comprehensive loss, net of tax $ (31,335) $ (34,495) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended June 30, (In thousands, except per share data) 2024 2023 Numerator Net income $ 49,068 $ 53,276 Denominator Denominator for basic earnings per share — weighted average shares outstanding 49,886 49,767 Dilutive effect of unvested restricted stock units and options issued to employees and directors 381 429 Denominator for diluted earnings per share 50,267 50,196 Earnings per Common Share: Basic earnings per share $ 0.98 $ 1.07 Diluted earnings per share $ 0.98 $ 1.06 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Compensation Expense Information | The following table provides information regarding our stock-based compensation: Three Months Ended June 30, (In thousands) 2024 2023 Pre-tax stock-based compensation costs charged against income $ 3,425 $ 4,146 Income tax benefit recognized on compensation costs $ 438 $ 406 Total fair value of options and RSUs vested during the period $ 11,150 $ 11,226 Cash received from the exercise of stock options $ 1,975 $ 7,028 Tax benefits realized from tax deductions resulting from RSU issuances and stock option exercises $ 667 $ 876 |
Schedule of Restricted Shares | A summary of the RSUs granted under the 2005 Plan and the 2020 Plan is presented below: RSUs Shares (in thousands) Weighted Three Months Ended June 30, 2023 Unvested at March 31, 2023 409.0 $ 47.17 Granted 142.8 61.73 Incremental performance shares 41.3 — Vested (189.3) 41.81 Forfeited (4.2) 54.92 Unvested at June 30, 2023 399.6 54.18 Vested at June 30, 2023 108.5 36.54 Three Months Ended June 30, 2024 Unvested at March 31, 2024 391.9 $ 54.43 Granted 131.9 69.87 Incremental performance shares 41.1 — Vested (177.7) 46.19 Forfeited (3.2) 58.16 Unvested at June 30, 2024 384.0 62.43 Vested at June 30, 2024 110.2 38.77 |
Schedule of Fair Value of Options Granted | The fair value of each option award is estimated on the date of grant using the Black-Scholes Option Pricing Model that uses the assumptions presented below: Three Months Ended June 30, 2024 2023 Expected volatility 30.4% - 30.8% 30.2% - 31.6% Expected dividends $ — $ — Expected term in years 6.0 to 7.0 6.0 to 7.0 Risk-free rate 4.5% 3.6% Weighted average grant date fair value of options granted $ 27.97 $ 23.75 |
Schedule of Stock Option Activity | A summary of option activity under the 2005 Plan and the 2020 Plan is as follows: Options Shares (in thousands) Weighted Weighted Aggregate Three Months Ended June 30, 2023 Outstanding at March 31, 2023 1,081.0 $ 43.96 Granted 128.1 61.73 Exercised (172.9) 40.64 Forfeited (19.3) 54.86 Expired (1.7) 54.47 Outstanding at June 30, 2023 1,015.2 46.54 6.5 $ 13,369 Vested at June 30, 2023 700.1 42.70 5.4 $ 11,714 Three Months Ended June 30, 2024 Outstanding at March 31, 2024 728.0 $ 48.30 Granted 109.7 69.94 Exercised (38.3) 51.61 Forfeited (9.9) 59.11 Outstanding at June 30, 2024 789.5 51.01 6.6 $ 14,207 Vested at June 30, 2024 551.9 45.45 5.6 $ 12,915 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Operating and Reportable Segments | The tables below summarize information about our reportable segments. Three Months Ended June 30, 2024 (In thousands) North American OTC International OTC Consolidated Total segment revenues* 232,316 $ 34,826 $ 267,142 Cost of sales 105,559 15,561 121,120 Gross profit 126,757 19,265 146,022 Advertising and marketing 33,753 5,612 39,365 Contribution margin $ 93,004 $ 13,653 $ 106,657 Other operating expenses 34,611 Operating income $ 72,046 * Intersegment revenues of $0.7 million were eliminated from the North American OTC Healthcare segment. Three Months Ended June 30, 2023 (In thousands) North American OTC International OTC Consolidated Total segment revenues* $ 246,143 $ 33,166 $ 279,309 Cost of sales 110,076 14,560 124,636 Gross profit 136,067 18,606 154,673 Advertising and marketing 31,401 4,830 36,231 Contribution margin $ 104,666 $ 13,776 $ 118,442 Other operating expenses 33,248 Operating income $ 85,194 * Intersegment revenues of $1.4 million were eliminated from the North American OTC Healthcare segment. |
Schedule of Revenues from Similar Product Groups | The tables below summarize information about our segment revenues from similar product groups. Three Months Ended June 30, 2024 (In thousands) North American OTC International OTC Consolidated Analgesics $ 27,011 $ 1,282 $ 28,293 Cough & Cold 14,961 5,736 20,697 Women's Health 50,495 4,083 54,578 Gastrointestinal 44,287 13,728 58,015 Eye & Ear Care 43,319 4,811 48,130 Dermatologicals 31,603 1,752 33,355 Oral Care 17,674 3,100 20,774 Other OTC 2,966 334 3,300 Total segment revenues $ 232,316 $ 34,826 $ 267,142 Three Months Ended June 30, 2023 (In thousands) North American OTC International OTC Consolidated Analgesics $ 27,182 $ 842 $ 28,024 Cough & Cold 20,374 6,052 26,426 Women's Health 54,955 4,956 59,911 Gastrointestinal 44,681 12,910 57,591 Eye & Ear Care 39,471 4,021 43,492 Dermatologicals 34,678 1,338 36,016 Oral Care 21,726 3,022 24,748 Other OTC 3,076 25 3,101 Total segment revenues $ 246,143 $ 33,166 $ 279,309 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Inventory Disclosure [Abstract] | ||
Packaging and raw materials | $ 20,124 | $ 19,210 |
Work in process | 1,253 | 636 |
Finished goods | 130,663 | 118,871 |
Inventories | $ 152,040 | $ 138,717 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 31, 2024 |
Inventory Disclosure [Abstract] | ||
Inventory valuation reserves related to obsolete and slow-moving inventory | $ 4.6 | $ 4.7 |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning | $ 741,836 |
Accumulated impairment loss, beginning | (214,103) |
Goodwill, net, beginning | 527,733 |
Adjustment related to acquisition | 309 |
Effects of foreign currency exchange rates | 401 |
Goodwill, gross, ending | 742,546 |
Accumulated impairment loss, ending | (214,103) |
Goodwill, net, ending | 528,443 |
North American OTC Healthcare | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning | 711,452 |
Accumulated impairment loss, beginning | (212,516) |
Goodwill, net, beginning | 498,936 |
Adjustment related to acquisition | 0 |
Effects of foreign currency exchange rates | 0 |
Goodwill, gross, ending | 711,452 |
Accumulated impairment loss, ending | (212,516) |
Goodwill, net, ending | 498,936 |
International OTC Healthcare | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning | 30,384 |
Accumulated impairment loss, beginning | (1,587) |
Goodwill, net, beginning | 28,797 |
Adjustment related to acquisition | 309 |
Effects of foreign currency exchange rates | 401 |
Goodwill, gross, ending | 31,094 |
Accumulated impairment loss, ending | (1,587) |
Goodwill, net, ending | $ 29,507 |
Intangible Assets, net - Activi
Intangible Assets, net - Activity Affecting Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | |
Intangible Assets, Gross [Abstract] | |||
Totals, gross, beginning balance | $ 2,578,420 | ||
Totals, effects of foreign currency exchange rate | 2,277 | ||
Totals, gross, ending balance | 2,580,697 | ||
Accumulated Amortization | |||
Accumulated amortization, beginning balance | 257,837 | ||
Accumulated amortization, additions | 4,954 | $ 5,000 | |
Accumulated amortization, effects of foreign exchange rates | 89 | ||
Accumulated amortization, ending balance | 262,880 | ||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Finite-lived intangible assets, net | 148,846 | ||
Intangible Assets, Net [Abstract] | |||
Intangible assets, net | 2,317,817 | $ 2,320,583 | |
Finite-Lived Trademarks and Customer Relationships | |||
Finite-Lived Trademarks and Customer Relationships | |||
Finite-lived trademarks and customer relationships, beginning balance | 411,258 | ||
Finite-lived trademarks and customer relationships, effects of foreign currency exchange rate | 468 | ||
Finite-lived trademarks and customer relationships, ending balance | 411,726 | ||
Accumulated Amortization | |||
Accumulated amortization, beginning balance | 257,837 | ||
Accumulated amortization, additions | 4,954 | ||
Accumulated amortization, effects of foreign exchange rates | 89 | ||
Accumulated amortization, ending balance | 262,880 | ||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Finite-lived intangible assets, net | 148,846 | ||
Indefinite-Lived Trademarks | |||
Indefinite- Lived Trademarks | |||
Indefinite-lived trademarks, beginning balance | 2,167,162 | ||
Indefinite lived trademarks, effects of foreign currency exchange rate | 1,809 | ||
Indefinite-lived trademarks, ending balance | $ 2,168,971 |
Intangible Assets, net - Narrat
Intangible Assets, net - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 4,954 | $ 5,000 |
Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, useful life | 10 years | |
Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, useful life | 24 years |
Intangible Assets, net - Future
Intangible Assets, net - Future Amortization of Intangible Assets (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2025 (remaining nine months ended March 31, 2025) | $ 13,204 |
2026 | 16,213 |
2027 | 14,621 |
2028 | 12,285 |
2029 | 12,285 |
Thereafter | 80,238 |
Finite-lived intangible assets, net | $ 148,846 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||
Amortization of right-of-use assets | $ 665 | $ 665 |
Interest on lease liabilities | 9 | 30 |
Operating lease cost | 1,704 | 1,624 |
Short term lease cost | 32 | 33 |
Variable lease cost | 16,423 | 16,456 |
Total net lease cost | $ 18,833 | $ 18,808 |
Leases - Lease Maturities (Deta
Leases - Lease Maturities (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Operating Leases | |
2025 (remaining nine months ending March 31, 2025) | $ 3,348 |
2026 | 2,750 |
2027 | 2,214 |
2028 | 1,733 |
2029 | 374 |
Thereafter | 1,597 |
Total undiscounted lease payments | 12,016 |
Less amount of lease payments representing interest | (1,307) |
Total present value of lease payments | 10,709 |
Finance Lease | |
2025 (remaining nine months ending March 31, 2025) | 779 |
2026 | 96 |
2027 | 80 |
2028 | 0 |
2029 | 0 |
Thereafter | 0 |
Total undiscounted lease payments | 955 |
Less amount of lease payments representing interest | (11) |
Total present value of lease payments | 944 |
Total | |
2025 (remaining nine months ending March 31, 2025) | 4,127 |
2026 | 2,846 |
2027 | 2,294 |
2028 | 1,733 |
2029 | 374 |
Thereafter | 1,597 |
Total undiscounted lease payments | 12,971 |
Less amount of lease payments representing interest | (1,318) |
Total present value of lease payments | $ 11,653 |
Leases - Additional Information
Leases - Additional Information (Details) | Jun. 30, 2024 |
Weighted average remaining lease term (years) | |
Operating leases | 4 years 3 months 10 days |
Finance leases | 10 months 2 days |
Weighted average discount rate | |
Operating leases | 4.77% |
Finance leases | 2.89% |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Payables and Accruals [Abstract] | ||
Accrued marketing costs | $ 30,630 | $ 24,053 |
Accrued compensation costs | 6,216 | 12,221 |
Accrued broker commissions | 1,662 | 1,309 |
Income taxes payable | 189 | 2,569 |
Accrued professional fees | 6,683 | 5,046 |
Accrued production costs | 3,598 | 4,166 |
Other accrued liabilities | 5,884 | 6,790 |
Total other accrued liabilities | $ 54,862 | $ 56,154 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Mar. 31, 2024 | |
Debt Instrument [Line Items] | ||
Total long-term debt (including current portion) | $ 1,100,000 | |
Long-term debt, net | 1,100,000 | $ 1,135,000 |
Less: unamortized debt costs | (8,793) | (9,196) |
Long-term debt, net | $ 1,091,207 | 1,125,804 |
Senior Notes | 2021 Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate | 3.75% | |
Total long-term debt (including current portion) | $ 600,000 | 600,000 |
Senior Notes | 2019 Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate | 5.125% | |
Total long-term debt (including current portion) | $ 400,000 | 400,000 |
Term Loans | 2012 Term B-5 Loans | ||
Debt Instrument [Line Items] | ||
Total long-term debt (including current portion) | $ 100,000 | $ 135,000 |
Term Loans | 2012 Term B-5 Loans | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 2% |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Debt Instrument [Line Items] | |
Long-term debt outstanding | $ 1,100,000 |
Revolving Credit Facility | 2012 ABL Revolver | |
Debt Instrument [Line Items] | |
Long-term debt outstanding | 0 |
Borrowing capacity | $ 183,600 |
Long-Term Debt - Maturities of
Long-Term Debt - Maturities of Long-term Debt (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Aggregate Future Principal Payments | |
2025 (remaining nine months ending March 31, 2025) | $ 0 |
2026 | 0 |
2027 | 0 |
2028 | 400,000 |
2029 | 100,000 |
Thereafter | 600,000 |
Total long-term debt (including current portion) | $ 1,100,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Senior Notes | 2019 Senior Notes | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, senior notes and term loans | $ 400,000 | $ 400,000 |
Senior Notes | 2021 Senior Notes | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, senior notes and term loans | 600,000 | 600,000 |
Term Loans | 2012 Term B-5 Loans | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, senior notes and term loans | 100,000 | 135,000 |
Fair Value, Measurements, Recurring | Senior Notes | 2019 Senior Notes | Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, senior notes and term loans | 388,000 | 389,000 |
Fair Value, Measurements, Recurring | Senior Notes | 2021 Senior Notes | Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, senior notes and term loans | 521,250 | 522,750 |
Fair Value, Measurements, Recurring | Term Loans | 2012 Term B-5 Loans | Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, senior notes and term loans | $ 100,750 | $ 135,506 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) | 3 Months Ended | ||
Jun. 30, 2024 USD ($) vote $ / shares shares | May 06, 2024 USD ($) | Mar. 31, 2024 $ / shares shares | |
Stockholders' Equity Note [Abstract] | |||
Common stock, shares authorized (in shares) | shares | 250,000,000 | 250,000,000 | |
Common stock, par value (in USD per share) | $ / shares | $ 0.01 | $ 0.01 | |
Preferred stock, shares authorized (in shares) | shares | 5,000,000 | 5,000,000 | |
Preferred stock, par value (in USD per share) | $ / shares | $ 0.01 | $ 0.01 | |
Voting rights, number of votes per common share owned | vote | 1 | ||
Dividends declared on common stock | $ | $ 0 | ||
Stock repurchase program, authorized amount | $ | $ 300,000,000 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Repurchased Shares (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Class of Stock [Line Items] | ||
Total amount repurchased | $ 31,945 | $ 30,593 |
Share Repurchase Program | ||
Class of Stock [Line Items] | ||
Number of shares (in shares) | 401,111 | 426,479 |
Average price per share (in USD per share) | $ 64.76 | $ 58.62 |
Total amount repurchased | $ 26,000 | $ 25,000 |
Restricted Shares | ||
Class of Stock [Line Items] | ||
Number of shares (in shares) | 82,673 | 88,953 |
Average price per share (in USD per share) | $ 70.16 | $ 61.92 |
Total amount repurchased | $ 5,800 | $ 5,500 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components of AOCL (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Shareholders' equity | $ 1,680,767 | $ 1,655,084 | $ 1,480,295 | $ 1,447,084 |
Accumulated other comprehensive loss, net of tax | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Shareholders' equity | (31,335) | (34,495) | $ (32,210) | $ (31,564) |
Cumulative translation adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Shareholders' equity | (32,060) | (35,220) | ||
Unrecognized net gain on pension plans, net of tax of $(217) and $(217), respectively | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Shareholders' equity | 725 | 725 | ||
Unrecognized net gain on pension plan, tax | $ (217) | $ (217) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Mar. 31, 2024 | |
Stockholders' Equity Note [Abstract] | ||
Reclassification from accumulated other comprehensive loss into earnings | $ 0 | $ 0 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basis and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Numerator | ||
Net income | $ 49,068 | $ 53,276 |
Denominator | ||
Denominator for basic earnings per share — weighted average shares outstanding (in shares) | 49,886 | 49,767 |
Dilutive effect of unvested restricted stock units and options issued to employees and directors (in shares) | 381 | 429 |
Denominator for diluted earnings per share (in shares) | 50,267 | 50,196 |
Earnings per Common Share: | ||
Basic earnings per share (in USD per share) | $ 0.98 | $ 1.07 |
Diluted earnings per share (in USD per share) | $ 0.98 | $ 1.06 |
Earnings Per Share - Antidiluti
Earnings Per Share - Antidilutive Securities (Details) - shares shares in Millions | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Outstanding Stock Awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 0.3 | 0.4 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2024 | Jun. 23, 2020 | May 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation costs related to nonvested awards | $ 4.5 | |||
Unrecognized compensation costs related to nonvested awards, weighted average period for recognition (years) | 2 years 4 months 24 days | |||
Options exercised, aggregate intrinsic value | $ 0.5 | |||
Restricted Stock Units (RSUs) & Performance Stock Units (PSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation costs related to nonvested awards | $ 15.9 | |||
Unrecognized compensation costs related to nonvested awards, weighted average period for recognition (years) | 2 years 3 months 18 days | |||
Long-term Equity Incentive Plan, 2005 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for grant (in shares) | 5,000,000 | |||
Number of additional shares authorized (in shares) | 1,800,000 | |||
Long-term Incentive Plan, 2020 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock, capital shares reserved for future issuance (in shares) | 1,600,000 | 2,827,210 | ||
Number of new shares for future issuance under 2020 long-term incentive plans (in shares) | 2,000,000 | |||
Number of unissued shares reserved for 2020 long-term incentive plans (in shares) | 827,210 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Based Compensation Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||
Pre-tax stock-based compensation costs charged against income | $ 3,425 | $ 4,146 |
Income tax benefit recognized on compensation costs | 438 | 406 |
Total fair value of options and RSUs vested during the period | 11,150 | 11,226 |
Cash received from the exercise of stock options | 1,975 | 7,028 |
Tax benefits realized from tax deductions resulting from RSU issuances and stock option exercises | $ 667 | $ 876 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) - $ / shares | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Shares | ||
Outstanding, beginning of period (in shares) | 391,900 | 409,000 |
Granted (in shares) | 131,900 | 142,800 |
Incremental performance shares (in shares) | 41,100 | 41,300 |
Vested (in shares) | (177,700) | (189,300) |
Forfeited (in shares) | (3,200) | (4,200) |
Outstanding, end of period (in shares) | 384,000 | 399,600 |
Vested, end of period (in shares) | 110,200 | 108,500 |
Weighted Average Grant-Date Fair Value | ||
Outstanding, beginning of period, weighted-average grant-date fair value (in USD per share) | $ 54.43 | $ 47.17 |
Granted, weighted-average grant-date fair value (in USD per share) | 69.87 | 61.73 |
Vested, weighted-average grant-date fair value (in USD per share) | 46.19 | 41.81 |
Forfeited, weighted-average grant-date fair value (in USD per share) | 58.16 | 54.92 |
Outstanding, end of period, weighted-average grant-date fair value (in USD per share) | 62.43 | 54.18 |
Vested, end of period, weighted-average grant-date fair value (in USD per share) | $ 38.77 | $ 36.54 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Option Valuation Assumptions (Details) - Stock Options - USD ($) | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividends | $ 0 | $ 0 |
Granted, weighted-average grant-date fair value (in USD per share) | $ 27.97 | $ 23.75 |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 30.40% | 30.20% |
Expected term in years | 6 years | 6 years |
Risk-free rate | 4.50% | 3.60% |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 30.80% | 31.60% |
Expected term in years | 7 years | 7 years |
Risk-free rate |
Stock-Based Compensation - St_3
Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Shares | ||
Outstanding, beginning of period (in shares) | 728,000 | 1,081,000 |
Granted (in shares) | 109,700 | 128,100 |
Exercised (in shares) | (38,300) | (172,900) |
Forfeited (in shares) | (9,900) | (19,300) |
Expired (in shares) | (1,700) | |
Outstanding, end of period (in shares) | 789,500 | 1,015,200 |
Exercisable, end of period (in shares) | 551,900 | 700,100 |
Weighted Average Exercise Price | ||
Outstanding, beginning of period, weighted-average exercise price (in USD per share) | $ 48.30 | $ 43.96 |
Granted, weighted-average exercise price (in USD per share) | 69.94 | 61.73 |
Exercised, weighted-average exercise price (in USD per share) | 51.61 | 40.64 |
Forfeited, weighted-average exercise price (in USD per share) | 59.11 | 54.86 |
Expired, weighted-average exercise price (in USD per share) | 54.47 | |
Outstanding, end of period, weighted-average exercise price (in USD per share) | 51.01 | 46.54 |
Exercisable, end of period, weighted-average exercise price (in USD per share) | $ 45.45 | $ 42.70 |
Options, Additional Disclosures: | ||
Outstanding, end of period, weighted-average remaining contractual term | 6 years 7 months 6 days | 6 years 6 months |
Exercisable, end of period, weighted-average remaining contractual term | 5 years 7 months 6 days | 5 years 4 months 24 days |
Outstanding, end of period, aggregate intrinsic value | $ 14,207 | $ 13,369 |
Exercisable, end of period, aggregate intrinsic value | $ 12,915 | $ 11,714 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 16% | 22.50% |
Concentrations of Risk (Details
Concentrations of Risk (Details) - manufacturer | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Concentration Risk [Line Items] | ||
Number of third-party manufacturers | 113 | 135 |
Sales | Customer Concentration Risk | Walmart | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 20% | 21% |
Sales | Customer Concentration Risk | Amazon | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 13% | 11% |
Sales | Supplier Concentration Risk | ||
Concentration Risk [Line Items] | ||
Number of third-party manufacturers with long-term contracts | 29 | 27 |
Top 5 brands | Sales | Product Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 40% | 41% |
Manufacturers | Sales | Supplier Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 78% | 75% |
Contract Pharmacal Corporation | Sales | Supplier Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 23% | 22% |
Business Segments - Information
Business Segments - Information on Operating and Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information, Profit (Loss): | ||
Total revenues | $ 267,142 | $ 279,309 |
Cost of sales | 121,120 | 124,636 |
Gross profit | 146,022 | 154,673 |
Advertising and marketing | 39,365 | 36,231 |
Contribution margin | 106,657 | 118,442 |
Other operating expenses | 34,611 | 33,248 |
Operating income | 72,046 | 85,194 |
North American OTC Healthcare | ||
Segment Reporting Information, Profit (Loss): | ||
Total revenues | 232,316 | 246,143 |
International OTC Healthcare | ||
Segment Reporting Information, Profit (Loss): | ||
Total revenues | 34,826 | 33,166 |
Operating Segments | North American OTC Healthcare | ||
Segment Reporting Information, Profit (Loss): | ||
Total revenues | 232,316 | 246,143 |
Cost of sales | 105,559 | 110,076 |
Gross profit | 126,757 | 136,067 |
Advertising and marketing | 33,753 | 31,401 |
Contribution margin | 93,004 | 104,666 |
Operating Segments | International OTC Healthcare | ||
Segment Reporting Information, Profit (Loss): | ||
Total revenues | 34,826 | 33,166 |
Cost of sales | 15,561 | 14,560 |
Gross profit | 19,265 | 18,606 |
Advertising and marketing | 5,612 | 4,830 |
Contribution margin | 13,653 | 13,776 |
Intersegment Eliminations | North American OTC Healthcare | ||
Segment Reporting Information, Profit (Loss): | ||
Total revenues | $ 700 | $ 1,400 |
Business Segments - Revenue (De
Business Segments - Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | $ 267,142 | $ 279,309 |
Analgesics | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 28,293 | 28,024 |
Cough & Cold | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 20,697 | 26,426 |
Women's Health | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 54,578 | 59,911 |
Gastrointestinal | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 58,015 | 57,591 |
Eye & Ear Care | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 48,130 | 43,492 |
Dermatologicals | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 33,355 | 36,016 |
Oral Care | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 20,774 | 24,748 |
Other OTC | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 3,300 | 3,101 |
North American OTC Healthcare | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 232,316 | 246,143 |
North American OTC Healthcare | Analgesics | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 27,011 | 27,182 |
North American OTC Healthcare | Cough & Cold | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 14,961 | 20,374 |
North American OTC Healthcare | Women's Health | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 50,495 | 54,955 |
North American OTC Healthcare | Gastrointestinal | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 44,287 | 44,681 |
North American OTC Healthcare | Eye & Ear Care | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 43,319 | 39,471 |
North American OTC Healthcare | Dermatologicals | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 31,603 | 34,678 |
North American OTC Healthcare | Oral Care | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 17,674 | 21,726 |
North American OTC Healthcare | Other OTC | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 2,966 | 3,076 |
International OTC Healthcare | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 34,826 | 33,166 |
International OTC Healthcare | Analgesics | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 1,282 | 842 |
International OTC Healthcare | Cough & Cold | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 5,736 | 6,052 |
International OTC Healthcare | Women's Health | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 4,083 | 4,956 |
International OTC Healthcare | Gastrointestinal | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 13,728 | 12,910 |
International OTC Healthcare | Eye & Ear Care | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 4,811 | 4,021 |
International OTC Healthcare | Dermatologicals | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 1,752 | 1,338 |
International OTC Healthcare | Oral Care | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | 3,100 | 3,022 |
International OTC Healthcare | Other OTC | ||
Geographic Areas, Revenues from External Customers [Abstract] | ||
Total revenues | $ 334 | $ 25 |
Subsequent Event (Details)
Subsequent Event (Details) - shares | 3 Months Ended | |||
Aug. 06, 2024 | Aug. 05, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | |
Restricted Stock Units (RSUs) | ||||
Subsequent Event [Line Items] | ||||
Granted (in shares) | 131,900 | 142,800 | ||
Director | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Number of shares of common stock delivered for each vested restricted stock unit (in shares) | 1 | 1 | ||
Director | Restricted Stock Units (RSUs) | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Granted (in shares) | 2,202 | 555 | ||
Award vesting period (years) | 1 year | 1 year |