PBH - Earnings call transcript Q1 2019 | Prestige Consumer Healthcare Inc.

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Operator

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the First Quarter 2019 Prestige Brands Holdings Incorporated Earnings Conference Call. At this time, all participants are in a listen-only mode to prevent background noise.

We will have a question-and-answer session later, and the instructions will be given at that time. And as a reminder, this conference is being recorded.

to Relations. call pleasure Director Phil my Investor of it's turn to the Terpolilli, Now,

Phil Terpolilli

operator, good you, Thank and phone. on the morning to everyone

questions Chairman, and first call, provide our we analysts. the Ron cover financial the from Christine Joining results, today our will then recent our President fiscal fiscal divestiture, of our the XXXX Sacco, today's on to and and and XXXX an On me CFO. take update highlights outlook, CEO; quarter call Lombardi, are review

We prestigebrands.com, Investors today's Webcast reported today's financial slide by then reconciliations have presentation some which that call included the includes earnings are accompanies release measures today's and in remember today a slide The clicking between presentation, non-GAAP of adjusted can accessed contained measures. presentation. in the and on link, and visiting Presentation. Please the information on and financial

management call, slide on today's and detailed around statements we page During of which on Safe make uncertainties, call. will disclosure accompanying the X complete risks a forward-looking Harbor presentation the

Ron the Additional and first hand recent recent to performance. cautionary most available our the on and our filings through our SEC Brands' factors concerning to CEO, over XX-K. walk I'll Prestige risk it highlights statements now of are information Lombardi, quarter most

Ronald M. Lombardi

Phil, Thanks, and everyone. good morning,

on Let's X. begin page

full and expect outlook the growth our expectations we continue We the performance and back presented we X% achieved X% year. leading start were the to top portfolio to consumption with May. line in are in consumption our favorable, pleased line importantly, year, and with to trends for remains our that We most results for

healthcare allowed approximately continued strategic wide many the Consumer to accumulation QX in focused consistent better last in generation company. today, reflect over to in million segment. trend change evolution. $XX and our capital actions our becoming million us This And the The Household Prestige a consumer cash of also We we free to name transaction seven buy Cleaning X% beginning $XX divested delivered growth announced years of shares leading to worth Healthcare we've of alternatives, back At we enables July, as of a is cash corporate quarter. allocation of the towards flow. taken range well this EPS as our and plans

Turning to slide more on detail X, we QX our have results.

net sales year. the versus million, $XXX X% down Our were prior

policies Total trends as packaging the Although healthy, with Goody's came the was company as by the and a new that we our XX.X%, remained QX. quarter, well margin expected, launch see impacted shipment in began at improvement gross recognition. sequential timing in around BC revenue continuation in accounting QX as to consumption change of associated a in

make Chris through progress discussed greater cash and to against tax Adjusted We cash needs, benefit continues from walk are low was free flow solid continuing detail. the will year, freight industry-leading warehousing and minimal to rate. capital last and million EBITDA which margins, costs spending higher $XX.X in QX, our in

used optionality. and platform, enables healthcare about The consumer talk leading in in further efforts which we'll proceeds net capital allocation which detail value, further enhance of financial enhances the to The divestiture Household on X, positions divested our segment ongoing part as Finally, Cleaning value. to shareholder company July long-term and concentrates future our which our were our drive later. strategy debt growing for profile paydown, we our

BC an Goody's and let's launch. to X slide update Now, on packaging turn for

offerings our for building to insights based ongoing broad feedback our consumer use is in across our packaging a and to discussed call example last both new easier successful and commitment where XXXX key the continually a improve on to Goody's portfolio. brands. As great we BC our launch brand the product launch we The efforts, of objective was quarter, fiscal of utilize

take is fiscal will am on the transition launch year activity pleased the report the plan. as today I packaging the that over to launch at proceeding to As we a retail. new place reminder,

During on number of the the In of designed the begin conversion and conversion to retail began awareness quarter, new will customers. including we half will equity remaining brand largely additional second QX, enhance complete, product for is arrive marketing product customers. initial around anticipate shipments new top occur, we a begin we to fiscal building the shelves. initiatives multiple the our In and packaging. XXXX, shipments will to shipment Once partners, made inventory and also of key

progress continue We continued about excited coming look quarters. to forward in to be and the transition

review most sale of and net for X detail. towards portfolio we to allow $XX debt a slide Household of results Cleaning more capital On strategic us over and term. reduce strategically benefits in proceeds to healthcare to used consumer $XX business transition. July There the turn of We this our which X, let's million. importantly number allocate our long from are the household million divestiture the Now, of announced brands

to portfolio, against continue leading declining consumer business which enhance we at interest as was in competitive positioned as the brand by is focus highly well consumer time, structural self-treatment. Cleaning category building Household around concentrated, healthcare over a grow to the store. contrast, playbook First, and expected our our driven In

was its range. the financial to now company be and can total, our in profile. margins XX% Household our platform The dedicated with consumer Second, In superior the growing Cleaning gross resources financial to company average structure healthcare divestiture dilutive enhances historical fully XX% the profile. margin towards

household capital our disciplined able was importantly, we Household will rather Household the strategy allocators summary, we to that capital shareholder our Cleaning a to is the sale against long-term transaction as are reallocate of Third, declining for Cleaning and most allocation around to business of the it pillar with capital used capital important business. be In Consistent real allocation, think being shareholders. the portfolio. to continue third of consumer drive as about strategic healthcare to value the than

company. the notable Now for let's divestiture The X. milestone turn to slide a represents

consumer XXX% consumer to billion, $X as over platform. We are last healthcare the healthcare focused positioned evolved Today, have a become we a decade company.

comprised our five X. number competitor. two of the one sales strong shown healthcare side total spanning brands, our are in while brands number oftentimes of We various XX% right market share, holds leading of as no meaningful majority portfolio with a Over are the categories leading consumer on of slide leading

changes Given undergone company the focused business today. shift better as the in shown XX, reflects slide the a positive change, has believe stands name towards we where our a on platform,

to that, on. turn to are I'll earlier, to and financials through business our ourselves, Prestige shift, customers mentioned in of but our investors this As Healthcare walk to an greater I over It's Consumer detail. changing a remind Chris name evolution. one what it process reflect to important the we With QX strategy focuses subtle in

Christine Sacco

Thank morning, Ron, and good you, everyone.

quarter our through some As Ron brief earlier, reviewed and offer like line results for to item. detail, greater context in by I'd in XXXX around our updated walk first fiscal expectations

the reconciled slight presentation which that quarter X% slide $XXX results are includes can decline revenue high to our you growth As level XX, in a EPS million, today's include first release. year. adjusted earnings the versus reminder, prior X% in On a of results, information see our of and

the G&A timing due related year the costs with from in expected certain prior EBITDA to Adjusted a recognition lower warehousing of of QX, BC a QX our a As noted due accounting we Goody's change in on versus gross anticipated decline expenses, and and margin to and comparison spending packaging, the and challenging timing launch the to revenue cost in around in along the decline policies due freight discussed. revenue higher first year. prior call, the revenue the half and of previously declined

provide and reflect Now segment. year let's turn outlook updated the to item XXXX the where I'll XX, slide results by an of Household consolidated Cleaning discuss fiscal divestiture fiscal to

net X% approximately For million. the $XXX first revenues quarter XXXX, of fiscal to decreased our

impacted anticipated which I the was performance the previous factors, by on slide. Our discussed

We in half. first we higher half freight, to continued progress points last costs warehousing for continue higher planned, year. from continue expect to up of shift and second as XX to as at away in the Concerning basis for the margin in cost make fiscal broker Adjusted quarter, second concentrated to against growth XX.X% came we've sequentially, usage. gross the experienced revenue be freight XXXX

Regarding hired. as local stabilized an and impact recognition. Goody's warehousing improvements the and were gradual are as the warehouse around accounting policy costs, was BC well these expanded improvements as transition packaging offsetting experiencing efficiency the we workforce revenue Partially of is largely changes

Please full now fiscal assumptions, note, will but margin Cleaning gross certain we low approximately divestiture. of no ahead, change the year business Household the following that expect the of with remain previous business. XXXX sales our are allocated within cost there Looking divestiture from of XX% a our with margin underlying to costs benefit

largely improvements gross the our Goody's the and offset surrounding margin anticipate SKUs gross the margin For related than which legacy a costs to expected half. to transitory are both update, be impact QX warehousing we launched BC second are and sales costs replace newly net Gradual freight product. that modeling, expected by and packaging as to of lower

invest in percent a as of adjusted of grew continued terms sales we of In as core XX.X% revenue our in for and QX, both at brands. behind dollars A&P, which we came to

Household now sales, For XXXX, of of segment. we fiscal expect of following A&P the divestiture XX.X% the approximately

in we expect marketing to initiatives. due As to half to first timing A&P reminder, above the the second continue half of a be

building actively Over term, to A&P as long-term on top for a we growth. to year-over-year seek absolute look grow dollars we continually will the brand basis line drive long opportunities

came spending the just at certain of in in first under G&A X% timing-related revenues fiscal Our quarter costs. adjusted including XXXX, total

expect X.X% of of Household to the the we Cleaning. of G&A now full year, divestiture approximately due For sales

expense the from not earnings Goody's $X.XX, just be Jobs timing, now discussed to the favorable million. shift and in tax our impact For of BC is depreciation operating and Tax packaging income reported in earlier. expected than offset the QX associated goods we year, and and share as rate fiscal prior growth the resulting cost over digit versus per sold with of Cuts low-single Act of more a accounting XXXX, representing amortization $XX included adjusted Last,

in a factors these a rate As timing year-over-year on we QX EPS continue expect similar basis. growth into will QX,

purchase program following place QX, May, the quarter, in slide share repurchasing adjusted $XX.X and In to X.X quarter we shares total of discuss fiscal the during for a first $XX Cleaning. for XXXX divestiture Now, million now expect in $XXX cash million. of In put free more the Household repurchasing our in quarter, XX let's or million price we approximately XXXX generated the turn flow cash to flow. million executed

net at prior was Our $X XX, from approximately quarter unchanged at June therefore, billion. the debt effectively

our expected revenue shift, profitability ratio to to X.X times debt the EBITDA. Given a increased year-over-year slightly on and leverage basis net sequential

our it broad our surrounding back fiscal X.X times year-end. I'd remarks. now anticipate we some now fiscal divestiture, to outlook, a to XXXX Household like of closing discussion our for by Following leverage turn approximately Ron and

Ronald M. Lombardi

Chris. Thanks,

continue Let's XX. on slide

driven year fiscal are solid to the We the of off a continued success strategy. by to start our

For remainder Household divestiture $XXX for business we be anticipate in the reflect now fiscal of of net range the XXXX of Cleaning $XXX for year the the million to sales, to the approximately XXXX. fiscal million to

We at expect to plus now divestiture declining of continue growth of X.X% range X.X%. plus to to anticipate higher the organic Household of fiscal And the for the we with business, this revenue be the end year.

Chris highlighted revenue year. the XXXX growth concentrated the will fiscal As in for be of earlier, half second

revenue is to the approximately described and Goody's organic half the to be previously First and growth changes packaging accounting flat expected launch. BC time due

to range be behind $X.XX we of half packaging anticipate discussed growth plus our and of expect timing invest fiscal XX% XX% we this EPS the by we to concentrated brand is profitability, the second driven efforts, For Again, year-over-year. EPS BC Goody's earlier. line, the including Similar to XXXX $X.XX top or the we in be to factors in to transition. the largely plus as

of full flow now cash we expect flow, or cash $XXX Regarding year more. million

reallocation year, with one line in was continue So, and feel in our our we and progress XXXX. divested business line around three-pillar brands. profile we quarter about QX, into top prospects. and consumer costs of continue long-term performance opportunities. allows in is capital And our we positive confidence for also expectation, have focus In warehousing further healthcare long-term to fiscal good We our to summary, our and make the leading the short experienced enhances financial finally, our which continue It Household to freight our strategy. on business, to future in

shareholder be continues generating turn operator free for business over it the With we can to grow, to to value. to cash that and I'd Our that, enhance are questions. like flow reinvested consistent

Operator

Raymond with And you. Thank Joe is question first our Altobello from James.

Your line is open.

Joseph N. Altobello

Hey, morning. Good Thanks. guys.

you, you the the to I on So earlier that does mentioned a allow of OTC little guess, business. first sale question Ron, the you Household bit for more focus guys

now – expect of growth? bottom algorithm line term you long-term long sale the Brands Prestige is guys line terms that for sort in what growth that, Given of top and with

Ronald M. Lombardi

Good Thanks. morning, Joe.

Joseph N. Altobello

Morning.

Ronald M. Lombardi

of line our growth, X% of long-term terms to about organic feel good to in outlook growth. we continue top So X%

was to business only X% about the With only the XX being Household sales, business. it a about of bp headwind

So had said that X% feel top and X% that outlook. still digit within And We continue mid bottom high about growth, us long-term line then again, it single we line. thing good long-term for same to keeps growth. to the to

Joseph N. Altobello

looked Okay. Great. quarter, there? And international, sales dynamics this Was was but down curious on little were like the gross just it significantly. then margin were what a up bit

Christine Sacco

is on shipments Yeah, The business just year-over-year was up top Joe, is based, – good quarter. Still Chris line line. so product mix. full orders International the gross was feel International to of the be this the largely really margin and year impacted for International as to on so basis you top for know the – impact distributor about and timing a distributor expected the

Joseph N. Altobello

if Receivables contributor be a working And just either major year-over-year, capital well. way payables flow could, or the cash one other? Great. Okay. were significantly up to to last significantly as think were one Should we I about year this and working pretty expect I one, up on capital. XX%

Christine Sacco

related, Yeah. is working right? customers with haven't Joe, our timing capital terms any vendors. or had change in really We

quarter see with And to expect will so top to from generally our line. grow in But no, variability I our we capital working quarter. would line

Joseph N. Altobello

Thank guys. Perfect. you, Okay.

Operator

Thank you.

Our William next from comes with Jon question Andersen Blair.

open. is line Your

Jon R. Andersen

morning, Good Hey. everybody.

Ronald M. Lombardi

Morning, Jon.

Christine Sacco

Jon. Morning,

Jon R. Andersen

consumption if I about I apologize, I Household of bit divested. right but business? I your see release. I solid did. more missed didn't that little in consumption OTC may in have what Could the you the in press Ron, it. been talk I trends a presentation now mentioned or detail side trends broadly terms any Obviously, think, the you being you're think seeing Hey, with have

not that still dynamics inventory experiencing and the of or you're experiencing trade some trade with And adjustments? retail may anymore be the

Ronald M. Lombardi

Sure.

performance to continue about our we for We outlook strong consumption all, of our during X% the portfolio quarter. across X% growth. first So of year feel first continued good to the saw

During the from manner. in it significant also continued quarter, some destocking, feel we inventory any although wasn't to headwinds first

first to I'll good the business. which out So again that reporting our that one It be very to year consumption reporting for comes growing And why. large the underlying in continues from the fast-growing your continue for good question, the business. continue of last answers if noticed I trends the quarter be The BC/Goody's, but business, also know doubled Analgesic portfolio. that monthly, there, disconnected doesn't that's exactly other so is doubled not we've But generic We're us. the add the that business, thing and about out the another particularly include a and to online disconnect on we performance feel sure – example. consumption our don't as

Jon R. Andersen

that given your they terms you store? How online versus any of brands? do I Yeah. know part fact how the this kind really in you something – rapidly, but the profitability at have retail fact is terms of point, versus growing so us, remind in given And make can offline? of up general, a in it's share market just business online your the And are performance you of is when their small to That's helpful. a stack portion sell tradeoff online through physical there

Ronald M. Lombardi

Yeah.

have business, so our with difference there's is for profitability what So, big online, our where there. similar no we partners, structure to compete we brick-and-mortar

the which are retail, we we spotty that these positioning, thing it's in is in it online trusted have those do that same the a from position where at stronger we find position tail even retail. have at The very have may tend brick-and-mortar have, look and, small distribution out to online do In generally, brands benefit is brands and online. go them one some that terms consumers have, well and of leading cases, brands we as we for tail that than online

So, that group to have. of that that's opportunities that with smaller tail better probably brands we the difference one is seem – tail brands have big we

Jon R. Andersen

Interesting.

your the portfolio and would quarter Okay. the stability Are in And expecting for pricing? across the in structure pricing you how you year? characterize

Ronald M. Lombardi

We increases. year in the latter some for the part small upside price are, with of some

Jon, it's made CPG companies about there by important that comments a year. increases price note, lot being think to is the I later of expected in

Jon R. Andersen

Yes.

Ronald M. Lombardi

commodity my to share, opinion, to in, being subject that, response headwinds. of or competing is those or competitive there pressures, price in And a large is they're inflation environment lot the players price competing that from for and a they're we're avoiding environment, both where two three

talked of are a same avoid past And us with we're to situation we've the leading about many our these companies of that today. other in about number the this faced headwinds. So, position again, in the not space a times allows lot CPG

Jon R. Andersen

one for Last me. Okay.

I You've repurchase, of business, that. any funds think, you share sense. the that to And tie consider and did as would quite the company, wondering makes allocation executed it first if of it maintaining a your public i.e. and which was I'm a if rapidly. Household sale kind capital in forward, between activity, help repurchase support share going options more broader Cleaning generated there

Ronald M. Lombardi

planned the wasn't between any just really of repurchase back The the our happened sale coincidental. to of Household May. in timing be and tie-in There the announcement

we we stock back did lot a a go recently, more of for opportunity that it at then have to was, sense price value with price have with made buy it's cash think that, opportunities, with paying M&A industry-leading up it lined us flow, primarily Again capital note been past, important it's I and flexibility allocation. our debt. an And to felt stock our in free to down where and out around allows the creation.

Jon R. Andersen

going Thanks so much. Good forward. luck

Ronald M. Lombardi

Thanks, Jon.

Operator

you. Thank

from with is Wissink question Jefferies. next Steph Our

open. line is Your

Stephanie Wissink

Chris. ones, Ron we could, everyone. if and morning, Good Thanks. really quick Three

into organic end, close upper growth the consumption. the on consumption can moving for year rollout. starting little of brands. wondering a with to And into I'm The that timeline first, leaning growth just you're ask with your you the you looks the and BC organic overall then, about it on talk of just line Goody's that in gap the the timing your I secondly, guidance that like, see based bit to if wanted

want the us the sure Ron, your the bit of I You we sales So, but in cadence? you be mentioned, And think up it detail distribution. to I to in was one, support small regarding an want a going One is or QX, just capital. QX. last I to remarks, then, of that prepared shipments gave step-up timing, QX? QX Is A&P understand question but that good most earlier on some in make to follow working

that First should was the some and So, improvement rate I Thank through the is, the DSOs did it we we course of largely year? you the timing go payables you. right understand related? expect in as

Ronald M. Lombardi

Okay.

So, three there, questions Steph.

we'll First, timing reported see reductions around this second the of that narrowing as sales being the and consumption, we It's to the hard we get a of year. that the year, the performance concentration anticipate we retailer consumption numbers, everything of right? into to anticipate half else inventory predict our equal,

point so We of around in have or headwind forecast the X outlook our year. sales for

we question and had impact A&P on we narrow. revenue timing again, the to then expect The get the you next So, around was of as year, of BC/Goody's part later spending. the into those both

in the see expect of packaging accelerate the impact in we as restage around bigger number QX. a then, QX, concentration both QX, starting to and with marketing of of that For converted with margin, launch. our customers continue more we to being new and the And on a we efforts conversion a gross expect QX, concentrated sales largest

Christine Sacco

first and back initiatives I'll rolling A&P of heavier expecting a be that And, just half, number there you as out than as remind initiatives for are always certain the about timing. we're talked half spend, to Steph, we

as so such half. while more will are QX, in concentrated And there Summer's that more BC/Goody's Eve be is first other in the brands concentrated

Ronald M. Lombardi

And I'll that. Chris let in capital, terms of address working

Christine Sacco

Yeah.

to simple Obviously, run quarter the yes, working anticipate – improvement, and an sheet cap what it's cap. year being do and through the mean, and would balance the how predict. something we as we is question year ends growing So, could timing a example, where speaking, work throughout as end DSO But impact of the difficult we about in as as timing line around, Steph, your to the always generally growth. expect to that top think would support in line I would check working up. line be a I expect it

Ronald M. Lombardi

they to DSOs is, have thing other comment some that have our thought One there there and be to seems not. eroded,

conditions the quarter unless there increase to We ended in changes the you any important June customers, last when you DSO our our year meaningful and terms haven't compare in And this made flow been has remember, knew our nor any of think the year. It's to to calculate whole have And you flow. not just sales, changing, but DSO. looks like I exactly can't without we DSO. erosion any take people monthly it's the seen it the externally in quarter understanding

Stephanie Wissink

willing Okay. not helpful. specific that That's with deck It's could, And is something us number? Ron, are you then, consumption of time, percent you're if terms the give share to this in in change? the willing it to I your

Ronald M. Lombardi

quarter? the For

Stephanie Wissink

Yes, for the quarter.

Ronald M. Lombardi

ahead, Phil. Go

Phil Terpolilli

Yeah, Phil. it's Steph,

quarter a year I difficult that for trends but for They below going that expectation were comparison. was consumption X% were you with X% as up against positive. to our range, line the slightly were in think the

Stephanie Wissink

Okay. Thank you.

Ronald M. Lombardi

Yeah.

Operator

you. Thank

Linda question Weiser from Bolton comes Our Davidson. next with D.A.

Linda Bolton Weiser

Hi.

for So to growth projection of between your fiscal versus can X%, that in growth category anticipated year the consumption of X% you break down terms for gains? share

Ronald M. Lombardi

to our the again, compete have category the grow different of of International to So growth we last that course, that well. in categories come two-thirds – third share growing and and compete it will from growth as the of in. and, summate business underlying would all the from categories categories or the in Probably either us come continuing we'll we

successful and questions we to not today's outpace be we gotten about compete the everyone categories in growing that in also any to continue on But continue haven't it's to share remind and only in. perform categories that. think I compete that growing the continue outgrow label. important but our that call private to we we well I

Linda Bolton Weiser

gross point on and a of gross I have the then I on sales did margin. say terms BC And guess the be or versus would the half, be but second than quarter? the sequentially read up Thanks. quarter in margin down quarter. in would said if quarter could believe lower down and would sequentially Chris first gross And quarter at Should you margin on versus didn't that second first Goody's second margin, second the gross impact one say bigger that it be in the you the impact we

Christine Sacco

Well, as Linda, our assumptions QX be of the of for there But the change gross margin no will right? up Household, ex divestiture. divestiture a underlying Household result is to the

of in step-down and second So, as and And going QX. to quarter. revenue we expecting the related, reminder a timing also, in primarily the outlook to largest the acceleration rollout come recognition, Goody's impact deductions the QX. that's a about transition of And yes, the of in BC for our had expenses as is our biggest in with customers talked initial said, largest you sequential

impact will So those that are the factors QX.

up of as the be will that. expected, down sequentially, it Household So because excluding divestiture, but

Linda Bolton Weiser

on you. Got similar in then first it the quarter. guess X% question was down the said first revenue, in you a half, I I the flat organic And so because type guess

So growth. terms has X% the up about Would of be be quarter that correct? organic second to in revenue

Ronald M. Lombardi

correct. That's

Linda Bolton Weiser

in you terms acquisitions I term, ratio. the But look terms know for a would target relatively in just unchanged guess, your leverage stated really I never long then road. long-term strategy you've of And down remains Okay.

to a range leverage to like X that long-term say would could So expect in? X that times be is we we you times

Ronald M. Lombardi

industry-leading number the the range X one I'm as the it's and other business our point, in So that terms because if long we'll in. fluid, or One of to leverage that company a a of levels point and flow. should thing likely constantly. saying of will stability of cash we most we've the we it for our than a given not And go target operate in environment leverage given have is high at future sure we your reasons. changes well Linda, as future depends companies, in that range at higher is, been as what on consistent operate the of free The the times. it never that right leverage really it's

we've X times not think peak we may be I'm sure would right to And if said X as well. times. at floor I levels closer operate the

But you bit both. be may if So that your a don't know, I question. high on answers

Linda Bolton Weiser

you very much. Thank helpful. That's Yes.

Ronald M. Lombardi

Thank you, Linda.

Operator

Frank Thank you. is Sidoti. from next our with Camma question And

Your line is open.

Frank Camma

guys. morning, Good

Ronald M. Lombardi

Frank. Hey,

Frank Camma

Hey.

You usually sort your changed versus that portfolio. a brands, the the of of you sort leading talk about that reason why your calling Is difference? rest brands presentation, your out there of in

Ronald M. Lombardi

we Household, on to an to on more detail and give wanted little that Just give a wanted all-important we update transition. the BC/Goody's

market. our So, to launched and nausea into on our get quarter, could we this to behind brands, more very the at today. of call the out One do most bit for that talk quarter. strategy successful that on well a leading recent to point, and That we back enough Dramamine-N brand providing next about we'll the to we during that insight cover the and is continue is continues to Frank. success investing felt was highlight But we execute focusing new products bringing innovation but

Frank Camma

brands you you Did when this did strip label of Household I Or the out given, outgrow they forgot about look or leading your the was even the it time? portfolio, at Cleaning, rest when that?

Ronald M. Lombardi

even Household, would core excluding rest and meaningfully did power expect, company, of brands as Our you the outpace core right? the

Frank Camma

Sure.

Ronald M. Lombardi

behind that. investing We're

Frank Camma

Sure.

percentage but still year adjustments for the looks My elevated Okay. especially has the it, for I'm in question think have is just that where adjust relative it come was X.X%, I you That's it G&A, obviously down was other on, – when have you to the getting. all it, I right?

Christine Sacco

correct. That's

Frank Camma

Okay.

have in else number, there something Was it? elevated that that's So, right? adjusted the the quarter would

Christine Sacco

Yeah.

Frank Camma

Oh, okay.

Christine Sacco

Yeah.

don't quarter we right? So had to We during given And quarter, of to ERP the we that upgraded some IT an first example. unique quarter. from costs in timing system the expect – as quarter, we our repeat, there's variability initiatives, the

So, we the continue year. to expect G&A of about X.X% for

Frank Camma

since last you build assumption do do to have there? you two is I just more increases? built floating of kind mean like your interest still I debt, And in you what me for rate mean, Okay. in question expense what Or have

Christine Sacco

increases. in built more we've Yeah, two

you is be year, to expense interest our our recall, – to interest As outlook year-over-year. flat for for be the flat

Frank Camma

Okay.

That's Thanks, Great. guys. all had. I Okay.

Operator

I'm for Thank the back like And turn not to would you. showing to the their questions remarks. any further queue. in management call final I

Ronald M. Lombardi

Thank everyone good Thank for like joining day. and to us a thank you. have I'd today, you.

Operator

in participating you, ladies wonderful This all may Thank gentlemen, Have and program, a and concludes the day. for you conference. disconnect. today's

Prestige Consumer Healthcare (PBH) 2 Aug 182019 Q1 Earnings call transcript