ENR - Earnings call transcript Q3 2022 | Energizer Holdings, Inc.

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Operator

Good morning. My name is Joe, and I will be your conference operator for today. At this time, I would like to welcome everyone to Energizer’s Third Quarter Fiscal Year 2022 Conference Call. [Operator Instructions] After the speakers’ remarks, there’ll be a question-and-answer session. [Operator Instructions] As a reminder, this call is being recorded. to Investor conference Relations. like Burwitz, to now President, Vice would turn over the Jackie I

You begin may your conference.

Jackie Burwitz

Good third morning. quarter Energizer’s fiscal XXXX And conference calls. welcome to

Chief are Joining Officer. Financial website, Investor of be LaVigne, me Relations the will replay and call call on today President Drabik, on A and energizerholdings.com. available Executive this Chief section Officer; John our Mark the of

are will future other these results which we update call risks are make we reports on statements business with these these from matters. could included statements. financial the this about to to Other file company’s forward-looking expectations During SEC. the may current statements. among and not performance from These subject factors that and undertake to based to management’s statements statements differ forward-looking results cause are cause actual in We materially actual uncertainties, and do materially differ

I’d regarding the reconciliation the We on where brick-and-mortar Mark. that, also XXXX. and relates and year relate and estimated industry quarter financial internal earlier discussed year both sales. in to Information Battery our non-GAAP share same like e-commerce prior and comparable presentation which to measures call release The to refer Energizer’s to all over the our period categories categories fiscal measures. concerning call includes in analysis website. to market estimates on information measures we retail comments available shown from on otherwise is we to comparisons believe press reasonable. to to turn year With category compete in be of all fiscal Unless data is pertain noted, and based today, this to issued our data, non-GAAP our GAAP is and A financial Energizer’s

Mark LaVigne

the our performed Energizer and globe. solid consumers thanking and Thanks, want across good start few high a headlines and serving passion Starting quarter. results to our Jackie, their in the the we call business everyone. commitment morning, at for quarter, customers on another team our where a to and delivered by I with continued the level

our transformation productivity actions also organic combination were are increase basis X% generated in creating The digital XXX earnings pricing, and in of adjusted from prior margin, the momentum On and share of operational pricing an initiatives per our revenue points quarter driving the the topline, execution expansion of X% $X.XX, and year. growth. gross

in are focus challenging earnings Our a delivering results environment. relentless on strong our testament a to

macro Before in devices typical consumer the in essential rent, categories decreased that the consumer I remain the color turning has it Batteries macro on health balance some led year that our categories in gas More trends in shopping and have on categories habits. aspect of Consumers areas increasing weeks, then deemed non-essential. Today X.X% and fiscal areas, utilities started in and like over category of for to every latest than the number and long-term their and spending which third own to key quarter, prioritize emerged while consumers want XX in rates time. in while they quarter, with consumer first, average fundamentals John like trends and for approximately moving categories, virtually strong. critical focus XXXX. into of to interest to categories prices Batteries, rising the three provide declining to and influencing details Starting Batteries, deprioritizing demand, value quarter, putting the lives the consumers of sentiment the our food, more specifically a purchases our the increased shifting pre-pandemic

are taken most category a of outpacing the prior up three-year over being category pricing basis. value XX% the on In impacted as the is the the trends by larger environment is to result stack value I As just although across a mentioned, data, with than a volume category. result, meaningfully pandemic macro the recent

prior Our to sharepoint business continues outpace the the gain in a resulting year. category X.X versus

we expanded period, our growth U.S. value same strong that performance across by and pricing, driven distribution markets. experienced key During international

we these quarter, the the to basis. to performance distribution volume on roughly anticipate we As our begin in mirror lap gains a value category both fourth and

of and in growth average three-year the Auto stack nearly and Now turning cause also bases. X% consumers age Care, XX% of value, the number on some recent and the both Volumes macro from of Chemicals. in types the to resulting previously to in Performance with strong, are vehicle of of vehicles were three-month where primarily the I which quarter the category by certain fundamentals same defer long-term value category refrigerants, maintenance. economic period, in grew growth in of growth mentioned, a category factors In pricing most health the carpark, impacted

trend season, Auto As selling the expected an decline cool impact you lower all with sales. net example, year-over-year this our consumers to Care refrigerant a segment we drove When start deferring combine experienced from our replenishment. in than This the maintenance. the nearly volume of saw

strong brands. Looking as in top dividends, as Appearance our needs. of look year. Chemicals XX% our driven in also sub-segment and Care products Armor consumers quarter. on organic to quarter in at other in double-digit category pay where from consumers largest All our This the to the have our Fragrance growth plans continue Auto to declined the chemicals, finally, extend discretionary expansion growth And auto is mileage away grew performance. segments, spending growth we international experienced this more vehicle Performance prioritize prior we of favor in essential behind

brands to maintain volatility consumers. we to right connections continue, with iconic have the of portfolio our expect we While

brands brands of Armor like in and Batteries range Tough to value and Rayovac Auto Our from extend offerings All. broad Energizer premium and Stuff like

across and declines While label the Appearance Batteries saw both consumer many we categories, in is quarter. private growing label in Auto private

Now in we’ve we made turning to the quarter. focus highlighted areas progress the last

XXXX. an efforts initiatives of expect of improved our success chain, our expansion and on capitalize to of has the important It Equally end gross improved with to last working May we’d digital the reduced as stability program from regions. address our gross margin to in extensive across to we supply the has list inventory and by investments, noted, drive while capital global our business visibility previously from months continuing we gross of reduction has shown our the in redoubled signs as margin $XX we fiscal over million opportunities. early our As generated additional peak growth July. in well margin, This two of the begun, levels

flow in the continue I quarter resumption beginning details now fourth provide a trend will to to in free for With turn performance into that, of fiscal the and who quarter. our expect about this deeper We resulting our cash the year. for call will financial dive more outlook over our the historical generation John

John Drabik

Good morning, everyone.

to of the the our revenue of with sales performance and Battery our offset into gains results a as expected volumes sales First, those for due million impact demand X% as two lower followed and to up elevated well Breaking organic discussion the were X.X%. distribution segments. outlook. I financial Starting provide year, pricing quarter, will overview full actions. favorable revenue, as were reported organic $XXX our the prior by our in year and an this quarter increased pricing of Lights up X.X%,

material, mentioned, had performed negative increases the benefiting to pricing are in the our XXXX. Chemicals results, executed and our our to these tendency XXXX driven, double-digit our and XX.X% Auto in delivered traffic challenges, by the premium labor more non-critical basis temperatures Despite and by miles organic a decision as of June, impact in as round, sales across on our price of Battery a second headwinds. of Auto expected the defer broadly which inflation, were we as largely mid-March business benefits fully which deemphasize prices low included gross Despite due Appearance XXX input the both STP place first Performance and offerings. transportation, in and high gas margin reminder, by Care country maintenance. of growth to sales actions increases offset well category believe well to in for Adjusted currency refrigerants, round the including led declined gas X.X%, points foot as drivers than and the lower elevated December cost margin straight Care quarter. than executed the a customer increased Auto Mark As very

up year. early out year. On lower related increased than the through million, bond to was segment to costs the year continued increased in be of balance. up lower. With absolute and related expect recycling transformation. a our in impact Care sales as million to segment, margins prior fees with to seeing quarter, $XX A&P previous was of was the A&P million the are down Total term legacy $X.X expect of X% year A&P in $XX.X and basis, inflationary and compared X.X% costs, many to from Care quarter. revolver due a costs benefited we of percent higher investment new the net basis, up to offset We outlook the Interest sales IT of in $XX.X first now full full our related XX.X% prior and X.X% stability $XXX primarily $XXX to a pricing XX% volumes signs we was below $X.X an Battery gross the higher benefit. as for of and SG&A our SG&A the for million quarter XX.X%, absolute higher expense input use roughly In offset fourth XX%. dollar X% While Lights $XX.X and our more distribution spending the months March. costs in input in to line pricing, more Battery anticipate slightly of sales a be than percent and range. Lights to percent On environmental ultimately our year the spending with to headwinds facility, totaled Auto dollar digital input million million, we implemented We proceeds as Auto million. to successfully a an roughly profit pricing in and issuance the while nine million pressures

of relentless $X.XX, capital structure which an of results at share the prior inclusive Adjusted us These continuous at X.X%, well our year. fixed were improvement the X% colleague’s minimal $X.XX are rising a is environment. to interest experienced we This foreign maturities of million the or XXXX, to increase a is of that positions per business. prior $XX interest on earnings now X% average debt currency testament with Our from blended current headwinds focus rate in the quarter. rate in approximately across

impacted would to revenues XXXX. flat, to negatively would our reported In on now headwinds $XX of low-single In that Turning the digits, November organic I in be our we provided to indicated million. outlook metrics guidance our to stand. like key original revenues we still second our organic while for outlook $XX to compare where holds. would revised be million foreign by which up growth we currency quarter, November,

revenues currency be in million headwinds reported million our now impacted Adjusted ranges the are by of adjusted our $X.XX approximately for our outlook. higher $X initial $XX the to to of share However, respectively. of outlook EBITDA million, original $XXX million and are be than $XX million and earnings year, $XXX expected to to $XX per to negatively full expected

Inclusive we impact exit for year the previous adjusted the $X.XX. and to approximately of the outlook. earnings to in full share strengthening year at our the EBITDA low U.S. headwinds we of million and impacts, Russian expecting of result of full $XX end be per adjusted expect our now dollar the or are However, market these rapidly of

that nine of year. the proud months the results incredibly of are first we in have the We delivered

done has Russian excellent from the outlook team the unexpected despite headwinds currency holding an Our job exit original market. and to the

like the Now remarks. to turn closing back Mark I’d for to call

Mark LaVigne

Thanks, John.

evident team’s and are the our us in more results work investment transitioned much have and into Our agile and a organization. resilient and dedication

for on questions. confident macro that, the well-positioned open objectives. marketplace We’re strategies will our to volatile With and environment remain in the deliver the we are right that I long-term and navigate call executing the

Operator

from [Operator Chappell Securities. ahead. Bill first will question Please go Our with Instructions] come Truist

Bill Chappell

morning. Good Thanks.

Mark LaVigne

Good morning, Bill.

John Drabik

Bill. Hi,

Bill Chappell

amount to kind and this FX expectation way FX exit better just on out First a and rolls for year. Russia of as little off break there at bit I least there’s there’s next historically, or hedging into been the fiscal kind move that color of on the year and maybe the versus you fair next know a then, of year. currency a Is a

of to what give So any with would way us for current kind XXXX. an spot the idea kind of headwinds be rates,

Mark LaVigne

In That’s total, points. to points against rapidly the in year. XXX headwinds appreciated the third full the pretty for Yeah. expecting now points Bill, dollar XXX we’re resulting impact $XX I points when versus in our is mean, quarter. basis most really of XX so to basis XX quarter. currencies about original gave million $XX last about And basis view of $XX or more earnings million than to basis our to about outlook like million of we $XX that’s million

I to net the As expecting you of what XXX term, rates, say points think, we’re look current into at on is, longer probably basis headwind topline. around XXX points spot basis I’d

Bill Chappell

mean For -- going annualized basis? on forward, kind you a of

Mark LaVigne

Yes. Yeah. the basis, that’s an current On Yeah. annualized spot.

We’re at away. months four three about looking months or

it’s So headwind. a definitely we’ll continue But to watch it.

Bill Chappell

you expected, of so as A a time, moving were Okay. down see in first faster, whether color would just seeing a that little of bigger you performing is we than year to kind B- the of impact you viewed kind can lot was trying Care, for comp trade -- give -- B+, last moving Auto a a rated, parts, if more an And kind to the of expectations? it’s it’s rated, you maybe reopening just B -- then thing be terms Mark, difficult are how of as this hard think us of

John Drabik

you business, and a quarter think, colder you component from weather last as was to season big normally a we talking plenty that. recover the in Care Auto were season, Bill, plays this know, of business quarter I business. start have to In time heat the some the it shifted you would refrigerant we hit, to same organic say the what in refrigerant impacts our related behavior declines the of the I know, is our were consumer of time saw most. as which around the most that when

the to essential window. migrated roll consumers running viewed really maintenance all shifting cars is maintenance and their season, not there’s essential toward always happened consumers to refrigerant, what then behavior So you down you as their had towards the and vehicle option a more start had -- colder with that vehicle keeping is the

So moved growth of I the Performance part consumers other trying you you vehicles and well, fuel nice mentioned, it’s business. you the of away also bit from to mileage consumers grew think their really fragrance, were see that they consumers migrate did because from purchase. get more enhanced as little out so deferred -- to a and down that, this Across Chemicals, a with They as saw trade in that refrigerants. standpoint, we though, in categories, maintenance. saw of Appearance in some it discretionary portfolio,

So portfolio. it’s I performance would balanced say a by Care the Auto

behavior. You refrigerant related be impacted of of the replenishment half But the least saw. the the in to quite are lack consumer we this of performed of were and to trends most at negative going portfolio quarter solely quarter in by some that well the

Operator

go Lauren Our next Lieberman Please ahead. question from with come Barclays. will

Lauren Lieberman

how if Hey. that to curious to and want Batteries, on Thanks. or putting switching within specifically little doing was distribution you’re terms no begun you’ve a any for Rayovac in about and change. Good possibly morning. But mentioned more I seeing you bit I private leverage Rayovac, talk there’s portfolio? really been anything there’s or know label, emphasis I your of broader merchandising the incremental you’re portfolio, and

Mark LaVigne

Lauren, it Yeah. there. I’ll Mark. start is

is viewed and I And consumer now behaviors as as they right by being are the shopping think a products. their and the essential adjusting Batteries, on is category factors. focus macro inflation essential. impacted

of the trade any obviously we leverage that category not standpoint, category. from brands broad meaningful within portfolio. Ready the and Rayovac and are is brands we way that value down Battery our strong, portfolio us Ever in can has seeing inside So, helps Today

from grow to like, size slightly, sharepoints continues X.X down, trade Energizer pack within some our growth you’re seeing are and But Rayovac trade evidence a share category. up seeing brand the You carry down. of

can retailers So watching sure their that of thus certainly far, make end leverage shopper meeting we the carefully. assets but certainly, of to very we’re value not And seeing as of needs. category, our it, something a to have it’s or emphasize lot sort that consumers the we’re want we

Lauren Lieberman

in why maybe in advertising, faster change it And was as for is the of expected. then seems coming we I’d But to the it’s be I be? spending, Great. in expected right had as it’s change, huge Okay. dollars, curious but plans stronger and on to you gross a millions margin not particularly than

Mark LaVigne

efficiencies right. house investment we’re were type question. in Well, the no Those A&P dollars of everywhere. case, perspective. from back facing for organization. look spend. the I It’s there good from an is, All looking we nonworking within was when emphasize think, point difference We efficiencies -- the really came really in this And to consumer

year much seeing as a last they very us. this year So from standpoint, the same they’re consumer did from

Lauren Lieberman

so, to do for better a at better the realized, do you you X% been have efficiency you better range think or because range is comparable you, and you’ve closer given savings something on those think had spend And to maintain levels now just like historical? just quality

Mark LaVigne

were so as below to future point and X% bit the think range. look range always starting year, we this year. within little adjust a a in range planning fiscal for pieces, number be purposes, target X%. at This ahead But look to X% I there accordingly years, we’ll moving a we X% to as of be of that always to that obviously, we

Lauren Lieberman

Great. time. it there right. come Thanks. and if back leave I’ll All Okay. is

Mark LaVigne

Yeah.

Operator

with JPMorgan. Our next Please question will come from go Andrea Teixeira ahead.

Andrea Teixeira

points deal levels clarification the space, see on and shelf given And comment you retailers we like to the how Care, And and levels points. the from you impact, to some if probably, Thank were you. about you inventory there? Thank trying that quarter? that? some translation Auto retailers coming XXX more into Auto but mentioned multiply you exit look FX, XXX bit just basis think and the elaborate know transaction morning. on on curious Care perhaps, at do But long on the Batteries that levels there? question contain mention Can -- you. can you can you you these fiscal categories you Good seeing Batteries? the you how to Bill’s you the have all how a please how for as with on deceleration XXXX side, heard little basis how to And inventory seeing have trans a consumption you also I did also of

Mark LaVigne

trends the levels. we’re right is, would I’ll define inventory understand we start retail levels. I it that’s John, just as quarters, will Care and future we slightly and let’s of that as tailwind as mindful at then to categories. retailers think, their end we’re it, seeing towards Batteries main not down now What start how inventory going against. terms get inventory is We of anything But quarter-over-quarter retailers of do maybe Auto we’re both that don’t And I we with turn to our I’ll the view over it we’re at a wind inventory it’s categories. But elevated. looking starting of elevated fighting something an the slightly we in of problematic focus some levels. in In think, obviously, on headwind levels extraordinary be view we or some in season, that to Auto as Care, watch it within but

normalized peaked. note point a In in the remarks, And in And the fourth them the We and as sort inventory the QX for our an of inflection of levels, John, expect as did a to cash capital resume quarter with inventory subsequent thing quarter, fiscal months. brought third In I the well phasing terms pivot flow terms in QX working prepared categories. and into us it within do as in from down bit you heard has as result, quarter, levels generation then, in we of our XXXX. of free standpoint. a been one is, we would

John Drabik

yeah. For --

to as we’re quarter. projecting the similar I the expecting we’re I think think forward, quarter fourth looks third

based so we that side, we below some we line usually we that to on and transactional fair performance and continued amount in saw changes any strong on continue. your on the So transactional project of currency don’t exercise expect impacts. Auto Battery then And Andrea, softness then, a of hedging

Andrea Teixeira

the color. pass all you. Thank Appreciated on. it Great. I’ll

Operator

will question Please Sachs. next Goldman Jason from Our English ahead. come with go

Jason English

Hey, folks. me Thanks for in. letting

Mark LaVigne

Jason. Hi,

John Drabik

Jason. Hi,

Jason English

degree on your looks A Is quarter? If going You questions, headwind reach? right? below the come first, for in you’re that materially margin what’s like no for why if this level? looks of you the to a are $XXX well sequential million guiding erosion, corner dropped input the couple turned cost? point? turning forecast we’ve Is that. And longer years like It costs, gross this so, in a

Mark LaVigne

good question. That’s Yeah.

So we’re input progress margin in the than Jason. made we third good feeling. pressure really improvement gross cost And have pricing on did better that see we the quarter

improvement months. So really said over we’re last kind back pace for that of but basis the half on of that’s points the XXX quarter, we six

be We’re did the to seen, we levels, built those elevated that see to some environment of this what costs continuing we’ve year still cost come to expecting And kind XX%. rising full inventory through. we’re XX% we of and in a

to come So and good that’s of it going sort we’ve XX%. expecting the fourth quarter pretty rate take to and run that we’re XX%, in visibility, through back got

XX%, costs. through input baked that think think the Now, level neutral and programs improve the right and can now, baseline beyond kind there kind right? that’s sort set that’s for to us changes, off and but we of a our going those improve cost then of heading That into factor to we’re lot this we we does any then our seen of we’re of kind from XX%, where base not on year, we’ve of in that’s really

Jason English

it. Got

of So get I’m still confused. and kind actually -- don’t I it.

costs are like, bounce factor like, so, I then Am in a actually the is like And causing quarter. drove it that the dynamics what saying, sounds it your and fourth is a no, this hearing margins you’re back So back? will right? bounce this gross utilization no, time if

Mark LaVigne

we not were It’s -- incremental It’s really inventory. utilization. Yeah. carrying

that rising So inventory we’re up built to We environment. like, days. and XXX XXX cost days,

our of fourth growing into So quarter. phased those coming are kind and they’re still through costs

you third. place pricing you the fully why saw so that’s in And in --

to some the see going quarter. place fourth. in have fourth through come we’re in fully in But costs pricing incremental the the You’ll

Jason English

Okay.

Okay. Thanks. off. I’ll it pass

Mark LaVigne

Thanks.

Operator

question with Please next come Evercore. ahead. will Our go from Robert Ottenstein

Robert Ottenstein

I’d to much. you more was the very circle could between in are label And managing question. wondering of kind into how retailers in different about to we an like gaps the just managing are insight you any. thinking recently Thank of we terms your segments, give back private us Great. I discussions if of -- didn’t retailers are with actually category, how were label, targets retailers going some see and private

So I’m not sure if of there’s been strategy any there. change

really discussions given consumers? get what’s for So to you. terms trying in a the of managing tightness on and going sense those of the category Thank

Mark LaVigne

they be and depending that to I trade think and discussions. Robert, premium can retailers label I getting will private a so general at Battery They way speak are little times think, a terms be and private consumers the approach best down shoppers from it a little brand label sense down a any retailer within traded brand I value a upon the of in the will pack size differ bit things. a label, approach consumer the individual can looking without into for searching and differently. want category Consumers are specific bit different value private retail all at that value individual at But to differently. for can

X.X sharepoint. perspective, label macro a if U.S., down was at private down look it the was X.X share, think sharepoints globally you I it in from

terms are previous within trading of continuing those suit. and like, terms emphasis are retailers brands will consumers category strong, mentioned of of towards premium some still out see migrate are of think in down and seeking them you questions, take Batteries, I as trends, notice the still to premium certainly pack those brands, follow size. I’ve are consumers when But So types in still in

So with invest anything brands find to them. not our it’s for to right in continue going retailers take our and we I the think, we’re strategy to invest continue granted, for to

into a we do within the value the to have. can that that category to at start Battery premium And we’re that retailers best time meet partner I when consumers, any positioned with they approach because lean they think change brands. and both need their perfectly We’re with can may

Robert Ottenstein

trying you pack all or managing at the is shape is with working are more and by retailers appreciate to architecture what is, I No. by the to any it get that, attempt I’m price how there reactive? category, consumers

Mark LaVigne

No. quite with retailers we shopping consumers management do the interact which with shape category. of well. individuals closely It how mean, our experiences absolutely category, to and is very something is proactive I shape that the we partner

We also on the dollars teams in a healthy return ability price maximizing well Energizer. getting for category a have and that as best as the pricing that -- strategy management architecture our and value that sure pack promotional revenue to make a growth generate from to from standpoint we’re lean on and dollar we’re retailers, for our

Robert Ottenstein

you Thank much. Great. very

Operator

next from Our question come ahead. Bank will William Reuter with of America. Please go

William Reuter

morning. Good

me elevated the levels costs that It’s it make does these on happening balance you’ve some costs tailwind expansion through? ago, year in these. expect but for this input upon fiscal input where quarter, year, costs upon in On based months XXXX capitalized of fourth several the like based what’s be sense would may case to it question the some were should just lower flowing inventory Is the that with a seem some on we of and sheet. next based

John Drabik

Yeah. fair good quarters visibility two Bill, we’ve what in I would a is, we’ve so the inventory, amount say quarter, of next the the first got on year. still got

still and pausing to to we’re seen far keeping we of although, sort we puts levels, we’ll some these from push it But as think elevated, an that input improve I costs, here, on right now, and get think they’re XXXX. sure. continue takes, As eye so at as for and we’ve for ready

William Reuter

in do from mentioned, next the of or quarter are we working these follow-up, you here, terms of capital And any capital benefit? end by lower maybe continue have It like a come from over the a sounds either just levels you for then to what down to Got you’ve see it. generated sense working XXXX, might million the you expect that $XX from inventories. of going --

John Drabik

out. and try to working But far expect what optimize down is, for I levels those look don’t say that think I we’re and inventory continue to come going we really to have to would capital.

XX% over we May course We’ll decreased and the along that get inventory to Mark $XX peak, cash more the generated do the XXXX. free As the the of as July to said, into quarter we’ve after improve then generating continue quarter, that. lines that push we’ve think the by million. to and June we’ll that’s saw of, XX% should we about fourth going what we to start look balance historically into continue sales of We to that in

William Reuter

it’s understand difficult. I Okay.

Thank you. Okay.

Operator

Our Carla go next ahead. with from Please question will come JPMorgan. Casella

Carla Casella

Great. question. Thanks my for I’m wondering… taking

Mark LaVigne

Carla. Hi,

Carla Casella

you could wage and bit are into XQ talk little the … of stable couple about quarters? as kind or rates is up seeing look a you even next of rates go a labor level if you and

John Drabik

stable labor Carla, right relatively we’re I now seeing think over is QX rates QX.

Carla Casella

-- -- change by Okay. either about seeing within talked a elasticity very bit segment by also it mentioned in then you Battery? you and elasticity? you heavy Does And are or category Auto Battery

Mark LaVigne

elasticity couple I by recent in change outliers period, maybe of on category. a mean, our does models held have Elasticity historical Yeah. with that.

shown. moving a I have bit the little historical this shown. rates, are you historical have period, certainly across consumer in period, habits earlier, has a with prices, in more routines, comp spending. increased you a our COVID well to the from but in store, stimulus, is, elastic you’re interest lot year financial what less mean, Performance pervasively rising with of either broad proven mentioned to driven perhaps, As have little prior models elastic and lot that, new just inflation. to the I as dealing terms pieces refrigerants, analysis, current point year than Chemicals, as In models based be than would the the of dealing say categories, reallocation what I a of would And demand not of

holding portfolio. models I elasticity of those the -- outliers if I think, were Care have So, both maybe you few period the balance a out, the a within and comp in those Auto on moving separate present but to are in with pieces, period lot

Carla Casella

in stand you terms then confusion Okay. covenants just think of both Great. been level. debt? where and the give us maintenance I And current on your you covenant there’s Could over some

John Drabik

Carla, got refinanced am out. our we year, significant agreement have is, sorry, think, We’ve what We credit I I currently blank last headroom. and Yeah.

Mark LaVigne

senior quarter Two secured.

John Drabik

senior quarter secured. Two

Mark LaVigne

Yeah. Net.

John Drabik

Net.

really So aren’t we there. -- there maintenance significant There significant headroom. have aren’t covenants

Carla Casella

Okay. Great. Thanks.

Operator

to LaVigne session. the concludes any Mark question-and-answer our for to back remarks. turn like over This closing conference I’d

Mark LaVigne

for again a joining Hope interest the your day. today and call great Energizer. in Thanks everyone has

Operator

The conference has attending presentation. for concluded. now Thank you today’s

disconnect lines. your You now may

Energizer (ENR) 8 Aug 222022 Q3 Earnings call transcript