PBH - Earnings call transcript Q3 2021 | Prestige Consumer Healthcare Inc.

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Q3 2021 Prestige Consumer Healthcare, Inc Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Phil Terpolilli, Head of Investor Relations. Please go ahead, sir.

Phil Terpolilli

you, is thank today. and Operator, everyone, joined who Thanks,

we'll Lombardi, me President our On outlook our update call from provide with take fiscal Ron quarter CFO. results our and third today's and Sacco, the call an Chris are Chairman, year-to-date, of and and On questions then cover analysts. CEO;

Please Investors financial can included remember today Webcast visiting prestigeconsumerhealthcare.com by release have slide that presentation accessed information today's and the a of slide includes measures earnings to on accompanies on some be nearest link the contained We and presentation are then GAAP financial today's Presentation. today's measures. call. It the the and clicking presentation. in in Reconciliations non-GAAP

and disclosure are Safe contemplate. the review During a complete Page in on call. uncertainties, to which slide today's will These around call, Management presentation Harbor detailed and of make X the forward-looking important accompanying are risks statements

impact the due for the on to everyone areas information call of purchasing environment economy, aware, These and business impacts disruptive many risk shutdown best date. potential factors. habits various other forecasted COVID-XX. As that include consumer to means could consideration at available on as chain any of and estimate the to This remains for based is change heightened a changes the time today supply uncertainty results items economic of today's

SEC filings over most Ron factors risk it concerning Ron? CEO, the and cautionary most statements and information Lombardi. recent on Company Additional now our available XX-K. are recent to hand I'll our

Ron Lombardi

let's start Thanks, on Phil. Slide And Good morning, everyone. X.

have a evidence raised and the place which this full pandemic. is to the highly success one, positions us set results as we we us The is model a revenue value in strong continued Our up of continues to create year-to-date proven earnings year targets. strategy and during performance topline long-term business adaptable and stable earnings our have for business

over and know of brands while on ongoing the term. work. wide this one trust offering grow long This adjust The Compound range consumers nature are opportunities. time consumers they allows long-term next of Our us of objective important a strategy near-term share also slide. is with to these brand-building we continues We'll nuance of categories easily-accessible strategy, to to to finding quick long-term the connecting strategy in example target deliver to W growth. investments, ways our additional brand real the Despite

and business have to focused where winning A in this For are discussed, have triple-digit efforts we've on example, ecommerce our consumers of actually quarters, of as Meanwhile, growth last many brands big a on result continuity in our mortar. compared seen and the are well do nimble we during COVID-XX. to share that the continue shopping. higher two brick where we prioritization is channel

to with to continue We levels consistent service supply work in ensure partners our this dynamic manufacturing strategically environment.

operating solid our capital continues disciplined for and We to Finally, free full which strategy continue our capital consistent model to growth flow earnings shareholders. and the year, increase optionality. cash allocation fiscal reward anticipate

delivering consistent of as our our year. remains results fiscal strategy solid recap, and close positioning to we So, our business out

long-term the X toolkit importance the our growth let's Even of Utilizing is steadily and we've is time, page to innovation. tool It's W. W, a insights, long-term invested time. have we great Shown objective. which lost building. to a Now our is through of long of history to it Slide we a with goal sight taking to have Compound brands. turn wide on for One over this this consumers brand the discuss behind range brand-building with leading a not example used of during tools consumer understand time brand unique Compound and drive

match to product not found our development a is is extreme we with the needs that W a technology treatments. All great in Compound operate of OTC its example pipeline multi-year recent freezing to consumers. with brands of other of continue concepts NitroFreeze ensure

We wart treatment are with also about options. treatment that their connecting explain consumers, think with helps content as they

during of Compound treat clear. to consumers of the the ability Compound and the W investment The at effectively home offers. pandemic, we've W example, For behind our reminded solutions result is warts

We shelf has have category to source insights our space share. to for and enabled a and continue growth. drive category for into how gain to trusted retailers the wart long-term brand This

Our results been solid. have

for double-digit that, to brand W as annual results. and consumers has preferred growth hand That's review Compound to rate. treatment. a Over Chris outpacing its position the last grown now solidifying number With a I'll category with free compound five our over wart market years, at one it financial

Christine Sacco

good morning, everyone. Ron, Thanks,

our and review Let's X Slide turn quarter third financial results. to

segment, reminder, presentation reconciled versus effects were of categories adjusted in the Several QX Oral a grew segment on million increases are North includes measure earnings prior the American information results which the down declined Health As closest the GAAP basis revenues largest in in today's revenue organic $XXX.X By Women's the X.X% to year, that release. X%. foreign of currency. an with our and excludes Care.

usage were and in categories behavior Cold motion due related As as as to as lice by and sickness expected, to lower declines however, changes levels incidence well these in Cough faced these rates head consumer and COVID-XX. offset gains

The certain sales increased after higher COVID-XX. segment to foreign of excluding home in related primarily to Hydralyte at effects lifted shelter were currency. of was restrictions attributable Australia X% approximately increase Our the international as

in declined primarily segment to model, $X.XX result predict its versus the share, with distributor from approximately of quarter A&M by the the pandemic-related driven reminder, orders around can a as be margin As international the timing can EBITDA X% prior Adjusted the uncertainty year offsetting spend. per lower to for difficult year, long-term of revenue the pay remained timing as and mid-XXs. expectations EPS due the restriction. timing. EBITDA A&M was quarter debt prior our of in expense to interest flat the consistent lower the down, a

the for results Now around months. Slide first let's X turn to more nine for consolidated detail

nine revenues down first were XX points. basis the months For

Our categories. diverse offset our strength helping in a revenue stable portfolio, in performance portfolio COVID-XX many has impacted enabled with to brands

performance fourth months. the marketing nine as to continues expectations XX.X% months year's the at and channel help remainder still to in of online margin Advertising to last revenue and first in to A&M the for as year We a you experienced expect of as sales drive growth year to flat just was rate This company percent for in a cost largely revenue been for quarter. expenses triple-digit consumption diversity channel margin of the XX% as management. adjusted in the [indiscernible] we purchasing. gross we margin of in-line strong year. to XX.X% QX nine the spend year-to-date, down shift has under broad Total disciplined first the in Our to quarters. Fiscal of G&A of consumers QX gross be full normalized our first ecommerce continue came the XX.X% were continue about in of for gross anticipate flat largely versus nine prior continue across XX% stable and months with XX.X% the at a XXXX was we and of

prior to the year full of approximate X% below anticipate we For remain and expenses G&A in year, absolute dollars. sales

expense the the to months XXXX the all Lastly, Fiscal and EPS share first for growth of we factors Lower were versus year. realized lower XX% growth. prior lower operating nine strong count interest costs,

In to $XX.X investments. we the in to which, than let's due capital last Slide quarter, Now, turn expected, generated CapEx as free of timing flow, was XX. working million lower cash year both and

million of Fiscal nine For free of months $XXX.X year. prior the flow XXXX, the grew cash X% versus first over

to at above QX, leverage free of continue to We X.Xx. equated prior approximately we or of end anticipate debt, flow ratio At net year full the $X.X which levels. year cash XXXX billion had a of

rate refinancing we opportunistically million of approximately on debt the event sheet back generation With of leaving the a in environment. anticipation the to During use on of repurchased to no potential strategy accumulation to the pay flow. was quarter, $X The in down QX free cash our to the debt attractive cash been opportunistically our in our that, There as I'll of capitalize Ron. cash balance prioritizing change shares primary remainder turn bond it quarter. has temporary

Ron Lombardi

Thanks, Chris.

the some outlook our for on year, less update with to in fiscal our to and increasing and months Let's turn With go, thoughts than our business Slide both confident two guidance are offer EPS. are our XX we to year. upcoming and performance initial sales objectives and

full the Fiscal year anticipate million. of approximately $XXX For XXXX, revenues we now

For over few QX, we we have what to anticipate consistent quarters. the realized trends past

flow into we for comparison the We flow $XXX to continue reduction and of debt stocked attributes to and strategy we solid well Disciplined as period year's year March as as allocation growth. now XXXX. continue of management the cost at a in $X.XX a and prior prior as translate approximately consumers the However, of of or drive significant will COVID-XX. capital our is EPS cash These cash a result free XXXX to level. earnings of Fiscal which or items benefit above up to more, lift experienced on a adjusted unique free million anticipate anticipate the face

prioritize while capital disciplined We reduction efforts allocation continue debt value. to other to balancing shareholder drive

well-positioned continue XXXX. heading we business our ahead, to confidence Fiscal Looking that into is have

lap us brand success. last of to while effects up that strategy set year, long-term the will We continues for COVID-XX long-term begin spring to in of the our building began

stable to remain I'll translates high organic for With financial solid questions. we that, growth its single-digit We profile a to disciplined allocation and X% for drive to up by sales into in Operator? continue value earnings capital long-term to strategy. confident driven it and target strategy our proven X% It's open ability which stakeholders. mid and growth,

Operator

Instructions] [Operator John Our from you. with first Blair. Thank William comes question Andersen

You your question. may with proceed

John Anderson

morning, Good everybody.

Ron Lombardi

John. morning, Good

John Anderson

I'll to on little gives how sales long long it long-term back basis might comment to start customer about, term, since in back your about X% get that a confidence growth. cetera, sales X% of organic the you've What to organic last can kind long-term efforts of changes of in base, some to target achieved sustainable you of bit that opinion, to if the kind kind you growth on dynamics you marketplace, the target? sales to COVID, get et over of to there a of given been a kind you that X% growth. get It's Talk consistently your the made, your will, I be and maybe the X% guess the to while Ron, X% X%. a with

Ron Lombardi

the for Thanks question, Sure. John.

first opportunity you And in all, X% thinking years, few look the So, to consumption around the growth consumption over organic we last for range. our back about business our been of always has X% growth. if start the

between that categories, again COVID-impacted as some our of this X% that then in their adjusted had COVID, to And the and with levels exclude certain retailers consumption year we X% the be to needs. disruption range. Now addressed business you disconnects inventory if continue

business, the grow to to ability long-term the X%. about good X% feel we why that's So

John Anderson

would matter of categories. on Okay. the and seeing stand the Is growth to be XX it see those done in matter Is to efforts be that? the of those trajectory? get you two And do lapping respect are of What question difficult needs some made to you back a expect kind retailers there part one just there next months; COVID-impacted cited reduce right that a back? of of just pipeline to get this the kind comps? inventory second inventories, to additional of work to then is, a Is that to the the over there: we March a things that you the do have What now? where with

Ron Lombardi

Sure.

So, two questions there.

or at I think at our that the point, actually this customers mirror that we're And hearing, inventory talked kind the we something not First this of talk last rearview quarterly in focus is levels. a We feel John. earnings this about at It's about this on about call. point. lot retailer

going the of of the So, in then had of on as that year a terms mix cough that businesses, we terms the Dramamine in and don't COVID-impacted see really business. that it steady of have in they the cold level April categories, at we a headwind an like impact brands our been forward. and last impact And call began, some we've

it haven't worse. really seen we So, get

our in that is disruptive well-positioned. share period. normal to of return over base once those then lift, begin So, The would businesses held start to levels lapping see to the that as we expect continue consumers first We've time. this be to and COVID we brands it of recovery actually during part and a there grown restrictions activity levels

the as disrupted really is to point So, getting lapping where back just it pointed out, we're you a period.

John Anderson

That's helpful.

the mentioned of your been portion business, has On extremely strong. ecommerce which you

you've like overall have well-positioned understand quarter. talked of that about I your growth and profitability sounds I brands again share in in commented saw And sales offline. You us so put you portion aggregate ecommerce's you you that think but than help that triple-digit there why also in terms offline. online just of is Where again, the this and that it said know the to online now does higher may your comparable you're online, before

really kind how ecommerce your you of is even agnostic big to but how a and post-COVID are stay you're standpoint, your expect So, percent of from now that there represented? it business? brands as Do

Ron Lombardi

Sure.

more mass, want consumers And them. choose dramatic all, in which for ago wherever available during is our dramatic in channels, dollar really first back executing be years ability a there you growth buy change growth the products XX examples. go channel successful in that a or to our can as when to of back was been simple strategy time, So, long it this we we've goes dramatic again to

increasing been channels That have a simply long there margins were shift. there and such to then that to place time as consumers and Our business actively strategy in move numbers. consumer going penalty a has has we manage applied grown isn't likelihood the to and opportunity ecommerce that in around the having the being it shopping grown to in those a any position

So, we us from that in curve strategy, ready. we single of than and business more one were we were doubled ahead that when well-positioned, that so executed the we quarter, ecommerce were

right was hold. online our at product that content Our structure our was would available so available, the margins cost

to to So, having just plan choose it consumers really and whatever about shop. is execution a support

question what's our as in percent. a you there current also had think I

of XX% know. either over I continue think don't consumers all approaching time all you customers, sales products total think and available. going back matter our of habits or the we're In there all-in, really doesn't We'll old now, the to across if case, as into to to are our it will so up I see stores. their there? it ecommerce where keep of or I whether shopping us they widely go stay

John Anderson

One maturity get last talk the not bond about in Thanks. sure the date, little opportunity quarter. the you're one might the refinancing the back which that? details you be for potential refi? in bond, and of mentioned Great. what of bond the I'll rate a just the you the queue. the for fourth Chris, paying bit now, I'm Can the kind

Christine Sacco

Hi, John. Sure.

to XXXX notes. time XXXX we the and are year with of currently to the market anticipating similar We look take are notes. did [ph] continue refinancing to $XXX to the conditions last favorable advantage million refinancing There now X.XX% we are senior going the this around on

it's to So specifics. obviously, early too discuss

haven't the sooner. potential of any We in we'll outcome launched share if even the deal not finalization but certainly May yet,

around Just as closing are anticipating X. reminder, we March a

to So, limited any impact to this QX one month be would from action. really

John Anderson

so thanks Good Great, much. luck.

Operator

you. Thank

comes question from Parikh with Our Oppenheimer. next Rupesh

question. your with proceed may You

Erica Eiler

wanted Good our morning. This touch is I taking first on to Eiler, guess actually international. Rupesh. just Thanks Erica for on for I question.

I But business can can talk and you during lumpy bit this talked you've thoughts the what and started about. that quarter as So, maybe more surrounding that in that maybe about category can appreciate just be segment elsewhere it to improvement was to see quarter Maybe encouraging with international you at little the your improvement? the drive Hydralyte. outlook to and latest see international a that

Ron Lombardi

what's year. don't the the Sure. in do Chris Erica, about of can for December in remainder comment what ended and we I, see I then quarter the Why outlook take the our

and of to and restrictions in was be largely Australia summer of consumption difficult consumption. we predict. the continue an sequential improvement Australia can in driver change a our COVID We behind combined their in that of sequential saw that in really the What during was there That quickly the increase somewhat to it's environment an the ahead propelled with some levels outperformance and business. quarter. lifted expectations for beginning the demand

big driver So really for what happen that the really did the during quarter predict was in us. we to

that, outlook. comment Chris on with So I'll what's QX in our let

Christine Sacco

Sure.

year guide related on as QX some orders our we comps noted the March obviously prior around to the impacts earlier, significant versus regarding So, have Ron COVID.

QX down pretty sequentially in in terms order somewhat have QX. us QX, we kind trends down predict. other in restrictions distributor dollars, swing in in of its states would absolute in noted of U.S. internationally in reasons and to will now, Ron that be for terms of to QX Australia we seen return if the think timing the of be in shelter we to the actually stable way So, think the we're at be international home helped patterns difficult some But expecting but right from to anticipate sequentially obviously we of

Erica Eiler

sales look point, you're about might to you to in and towards to easy this your in positive provide next Okay, this Just puts juncture, be you're but line your any next of year? top COVID FY given think you Fiscal at consumption lap us going XXXX? to that's seeing the we could helpful. and as a Actually return see comment expect you categories, we can comparisons some for year, as at XXXX, growth takes stable able

Ron Lombardi

Yes.

it. in As I peak, our quarter remarks XXXX an ended get best but the starts that prepared X, we the easier as we comps. companies, year. today, way enter in that's That's the we have comps where have March April calendar describe environment into don't commented Unlike reporting going next to we on to the be Fiscal into

point, beyond terms are this really growth happen. So it's activities? predict consumers is might may that to back impact certain It And getting when in COVID going year-over-year to to going in next return to that, normal growth. really that's it's hard still to going year. we restrictions start the at to of see to level helpful eased? When predict start really when expect But all we tough goes of to be what for to

to our on COVID-impacted Fiscal on else being excluding year. been everything an about the for has we of trends give state equal, our categories But May what expect good we'll business, XXXX the updated So, call. consumption outlook our this strong feel

to We grow share. continue

As and our free to cash successful I and commented earlier, continues flow. be financial to were profile in ecommerce earnings we well-positioned deliver solid very

So, with all that. of

We continue to about feel next good for year. our positioning

Erica Eiler

Okay, so Thank you great. much.

Ron Lombardi

Erica. you, Thank

Operator

Thank you.

Wissink comes Jefferies. Our question from next Stephanie with

proceed with question. may your You

Sebastian Barbero

Could Steph a was us Seb outlined is to question. share or your for in relative which peers? in presentation you are today, brands wondering you the Barbero, pandemic growing during market my for taking few this categories I color, which performing a environment. categories your give in Hi, Thanks bit more Wissink.

Ron Lombardi

Sure. growth today. called which We're seeing particularly strong W out Compound in I

to look continue We have Monistat to bit have example. doctor's home that's not particularly innovation helping at in the kind dentists. growing is office gone having DenTek maybe share treat good grow a see success in as many a in a launching where and year same is one this year of boat share there. consumers visit, is avoid women us to differentiated to the

So, in for of examples. they're care health teeth couple as their and their looking DenTek's of to take oral reaching products they're a

Sebastian Barbero

M&A, would if in specifically are any months? as And in past that look there we categories landscape you're And it then change strengthen any views next your looking few specific relates portfolio? at the to the XX over XX or to Thanks. months, your that category in more the

Ron Lombardi

let that? I comment don't Why Chris on

Christine Sacco

Sure.

to to for screening, M&A seen apply be continue in So you we'll opportunities. we've available they what and if consistently our to highly disciplined our space, fragmented opportunities will, similar and continue environment

where with category From at grow see marketplace positioning brand core to within So, look into what we're really we the a category category we I from categories. would where a perspective category, brand get it of like that. perspective, feel the within looking nothing around we're another we're is that many our no need to brands the in say, the you real as we or seeing lacking changes expand to

fairly and at. to we kinds process So, the M&A our no strategy or remain change that say of I market look around would the our things continued for screening to has stable

Sebastian Barbero

you. Thank

Operator

Thank you.

with comes Sturdivant Company. & question Mitch Pinhero from next Our

proceed with question. may You your

Mitch Pinhero

answered. Yes. Hey, has been of my good morning. questions Most

Anything the any there being performance. share were positive over W, particular? talked of Monistat Just, you What the in Compound were last lost about terms XX share months? - in

Ron Lombardi

our across a environment that, cough think would but brands identify, situation portfolio, you the I I or the that were so up very increased in where on, brands, share it's would our in a focus again, year versus if ago. dozen Mitch, we actually that held area core look is core well, site year-to-date and we generally brands beyond an power the one have unique be cold the and the aggregate,

Mitch Pinhero

the at paying. Even should you notes at there is down be look that looking the Is a was I given margins, should we're that would would talk about simply I bank attractive It's XXXX and five and meaningfully, your when at EBIT And the flow just your attractive change. Can what generate free leverage? and having, guys you then it think margins, come these rates obviously generation just that? notes interest And of half at that EBITDA cash function me, that Xx high. you're expense you XXXX I think refinancing. what Okay. X.XX% fundamentals. a [ph]. of quite curious, little bit? given To just

Christine Sacco

help advantage marketplace. our you pricing think us be don't available refinancing I it guess constrained get in our will I with to has say ability disciplined and the the would ever we profile from now? pitch leverage Mitch, to

seen companies. some with peer some that you've other we leverage think when I levels companies our compare and

consistently to I think been we get attractive have rates. able

So, go execute our to I and impeding think don't out ability it's successfully.

all our the significant refinancing would way to rate, see a yes, half So improvement a current that be market current we on to the expect aggressive the in this said, I interest as little in going on of a you X.XX% XXXX rates expense interest result think may notes. but in

Mitch Pinhero

than it can't I - the function the just… thing one as they're What's would be? maybe the, that at business. keeping guess terms What be that's your curious a of it look at there is? higher is - what It banks guess it be Is in just would looking I leverage. you. rate thank Okay, I what the think

Christine Sacco

of leverage. and ability the our say. leverage, leverage, current M&A I but the would anticipation not it's the to extent, flex the It's future some To

Mitch Pinhero

it. you. Okay, got I all right, have. All that's Thank

Ron Lombardi

Thanks, Mitch.

Operator

Thank you.

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

with You proceed may your question.

Linda Bolton-Weiser

then right Hi. got have And quarter? I a in to looked little was I and the of a numbers worse months? data, consumption sequentially then month worse. according worsening were what of why January like decline consumption little the then the your the was slides growth November don't the terms Is say that performance and through quarter, of December front was a didn't worse October, did but it actually worse. that IRI the the bit some or consumption same me, the a pattern ended little catch And in of little XX you through be in there numbers your - you would in Thanks. and see

Ron Lombardi

so environment call. this say or Those current never with have the biggest channels business goes first always all, the on from than whatever more quarterly I our been actually the business. the every genetic for then for reports, I reports of Linda, untracked growth you're disconnected international has think true getting and and IRI been it's from our Nielsen, where unchecked, ecommerce Yes, business what come fairly certainly

the first of in the second consumption. general and So, is the terms that's comment;

ended quarter a way because which a enter really And COVID get our talking spike period it. which on to And to to last the a as to disconnected where ended for significant impacted environment across continues business by It's describe activity. activity the in dip pretty steady about big June, the we the the even the in then was where about we've is you're quarter-to-quarter trough. rate, they're run why basis, about in talking an going and prior March, been more comps saw to year see year are consumption we be business, our Our funky. we're sequential

continue we'll think to our comps we given its So, sequential the encourage about rate in see abnormalities people basis, of the prior the and run to business year.

Linda Bolton-Weiser

in your you. let the was quarter? one what So, Chris consumption for that answer So,

Christine Sacco

Sure.

in Ron the remarks on you years. sequentially target low noted has the said couple think our past his for So, or long-term consumption in-line of down have was actually Ron and consistently COVID-impacted in prepared and and When of over single-digits, couple the brand might quarters Q&A. been the with as adjust I

Linda Bolton-Weiser

Okay, thank you very much.

Ron Lombardi

Okay, Linda. thank you,

Operator

Thank you.

question next Altobello with from comes James. Raymond Our Joe

proceed your question. You may with

Joe Altobello

late, look consumption about sounds morning. Thanks. at was this, X like jumped COVID I apologize of you it may was in if quarter? missed see you Hey it impact response March that question, I quarter, the guys, points, Linda's so last but gap just on Or does I some last narrow on call again, some improvement in do I quarter? good to curious, in from the June the have

Ron Lombardi

ended expect June, gone For the would COVID-impacted quarter to we impact businesses, the be largely Joe. the from

Joe Altobello

Okay.

Ron Lombardi

the year Because year. the than more less quarter clearly, full the effect in last going or for that was for last that March, to comps spike impacted business are quarter ended and be meaningfully because the of

Joe Altobello

Right.

could a get and worlds COVID-impacted consumer could channels fiscal start that, XXXX? the I you're situation So, on things focus related And elevated? to remained improve, see guess where hygiene in to degree best fairly categories both we Okay. you but health somewhat some and to of like

Ron Lombardi

consumers on health focus is likely, event significant hygiene think I is This a living that we've to going been while. continue for through. Joe. That's Sure. a One, and pretty very

going continue. So, I to would imagine that's

So, we level focus last the of may that get and the comp against positive impact year. both the certainly continued reduced

Joe Altobello

Have major more the increase stock some packaging outs? commodities. in for it become issues? me. one tightness experienced And and know led in noted you've or supply to any in you Has Got acute one past, it. last I chain just

Ron Lombardi

really been during us steady So, this it's Joe. pretty timeframe, for

to but at good really continue retails. work we and be we for seen with haven't any It's shelf We at partners meaningful to continue change position us. in environment supply for our steady supply in the a challenging,

Joe Altobello

Thank perfect. guys. Okay, you,

Ron Lombardi

Thank you, Sure. Joe.

Operator

Thank you.

& comes question with Anthony from next Lebiedzinski Our Co. Sidoti

may question. You your with proceed

Anthony Lebiedzinski

Thanks morning. the good taking Yes, for questions.

actually how we the also I'm of looking factoring to lead the [ph] of term, or So benefit for Are about benefit you [ph] your at just debt think should high already and book single spending A&M refinancing debt in wondering, term? growth I'm longer earnings over could to the refinancing better digit. earnings mid

Ron Lombardi

take Chris, wants to Sure. this.

Christine Sacco

Sure.

So noted question. closing not of for refi debt March. in factored as the results, year's the I beginning anticipate the in John's we response this in refi to would have We

this So, fiscal one year in this to quarter the limited month. impact would be to

So, first can just please? on you heads repeat your of front. And question, I part the up that a apologize,

Anthony Lebiedzinski

Yes.

Obviously, of that? COVID we was how the Thanks. should we Longer that to go question A&M That'll longer-term? some hit. great. first about term, spending, The made about should be how when adjustments think about of kind part that you

Christine Sacco

Sure.

So A&M yes, well, based from roll of as on out. spend we timing quarter-to-quarter you showed this as pointed initiatives out, can and the quarter fluctuate individual we that

think expect historically I That's A&M in to delivered is seen consistently. we've you've spend XX% and XX% range sales. of to of continue pretty the what something

Anthony Lebiedzinski

right, Got it. All thanks.

Ron Lombardi

Anthony. Thank you,

Operator

Thank comes with Blair. Instructions] next William question Andersen Our [Operator from John you.

with may You your proceed question.

John Anderson

we've I hearing I in back. spot two costs, couple an for to a obviously just That rates. guess, I'm more. was issue or ago, ask wanted three Transportation been about years increases you.

Just update about how an years that. give you're and thinking in us there today prior positioned versus how you're and

Ron Lombardi

Yes.

part through warehouse us move third-party John, in To than better position of and where have were. continues change is provider the First there this first all, of it. manage our to we

be a it percent fairly profile may The products. is, as small product other CPG second for is us freight other of who different heavier part versus of companies costs companies, revenue shipping or

being of this. in So, managing, in we're able think many although little manage of position a different other terms actively that to a it's I bit than we're companies something through

John Anderson

the Compound for it Rapid lines degree novel-technology, drive Okay. kind with really it a your up brand come And of approach, product, like multi-year or category, kind and like or of add sets you then that of with the - certain a drive your a functionality product of W stage a the brands, helps helps Freeze, one to when seems share.

the would business? That them they like of sit majority typical, of curious resets overall Average? is. just year? do did the average? the of spaced I'm kind Do the through would [ph] So, Fiscal of year? innovation? helpful. of Or kind most half the pipeline today, Also, out here when are as you or one at your better kind in say, What happen Are you be year point how innovation of of you characterize XXXX, than for that

Ron Lombardi

Sure.

think the So look today have and first product a brands. is of new on - I three-year this commented to our innovation all that developed of I big in pipeline remarks - prepared all for we

So, be innovation from launches our year-to-year. pretty new to steady and tend product

necessarily isn't valleys. and there So, peaks

market it's Some for to successful spring others and adjust bigger new in categories, terms products than And of the John. each tends the are year, into of between of summer kind of majority or timing, then in fairly we launch steady. our reset But more it and innovations of other. opportunities that number and happen terms

John Anderson

Okay.

a over five, asked talked have still of about what conditions you about and seven of divesting? done I you that? would you kind Do curious, think last consider know of were You've earlier. work been optimization portfolio there's the M&A a portfolio lot would your part you kind of In years. I'm just consider I six, under that doing

Ron Lombardi

flow those people core cash to and our the versus in is portfolio value and down really, it the and pay it behind Yes. we are generate from in benefits That's earnings tails to And all portfolio. math. Right function and the role can has tail time hear the inherent what that be that invest We we brands somebody for. brands. core power now, might willing the the who interested comes in of to evaluate the brands

evaluation. it to So, down comes that

John Anderson

Thank you. a Great. lot. Thanks

Ron Lombardi

Sure. Thank you, John.

Operator

Ron remarks. I any Lombardi to the for you. Thank showing not questions I'm any over to at call would further like now further turn time, this back

Ron Lombardi

Operator. look updating a day. for morning us to May. I'd forward in thank I Have Thanks, like you great this joining everybody to again and

Operator

ladies you, Thank conference for This call. today's participating. gentlemen. Thank concludes you and

disconnect. now may You

Prestige Consumer Healthcare (PBH) 4 Feb 212021 Q3 Earnings call transcript