ST. LOUIS, Aug. 2, 2016 /PRNewswire/ -- Edgewell
Personal Care Company (NYSE: EPC) today announced
results for its third fiscal quarter, which ended
June 30, 2016.
Executive Summary
- Net sales decreased 4.1% in the quarter and 5.9% year to
date. Organic net sales decreased 2.2% in the quarter and
0.9% year to date. Excluding the estimated impact of
international go-to-market changes, underlying net sales would have
decreased by 0.7% in the quarter and increased by 0.9% year to
date.
- Net earnings were $36.7 million
for the quarter and $126.5 million
year to date. Adjusted EBITDA was $88.6 million for the quarter and $320.7 million year to date.
- GAAP Diluted Earnings Per Share ("EPS") was $0.61 for the quarter and $2.11 year to date. Adjusted EPS was
$0.66 for the quarter and
$2.52 year to date.
- The Company has updated its fiscal 2016 financial outlook,
reaffirming its previous net sales outlook and raising the range of
Adjusted EPS.
The Company reports and forecasts results on a GAAP and
"Non-GAAP" basis, and has reconciled Non-GAAP results and outlook
to the most directly comparable GAAP measures later in this
release. See "Non-GAAP Financial Measures" for a more
detailed explanation, including definitions of various Non-GAAP
terms used in this release.
All comparisons used in this release are with the same period
in the prior fiscal year unless otherwise stated.
"The conclusion of the third quarter marked our one year
anniversary as a standalone company, and it's the point where we
began to put many of the transitional impacts associated with the
Household Products spin-off behind us," said David Hatfield, Edgewell's President, Chief
Executive Officer, and Chairman of the Board. "Our top and
bottom line results through the first three quarters were generally
in line with our expectations coming into the year, and we drove
those results while managing through a tremendous amount of
change." Mr. Hatfield continued, "We're excited as we move into
year two, and the next phase of growth and organizational
enhancements, including a new Zero Based Spending program launched
in June."
Fiscal 3Q 2016 Operating Results (Unaudited)
Net sales were $645.1
million in the quarter, a decrease of 4.1%. Organic
net sales decreased 2.2%, including an approximate $10 million, or 150 basis point, negative impact
from international go-to-market changes. North America net sales were down 2.2%, and
down 1.8% on an organic basis, primarily driven by declines in
Feminine Care. International (everything outside North America) net sales were down 2.7%, and
down 3.2% on an organic basis, though up 1.4% excluding the
approximate $10 million negative
impact of international go-to-market changes.
Gross margin was $311.2
million, or 48.2% of net sales, representing a 10
basis point improvement over the prior year. Gross margin
increased due to lower spin-related costs of approximately
$3 million and lower material costs
that were partly offset by unfavorable mix and unfavorable
transactional foreign exchange impacts on product costs.
Advertising and sales promotion expense ("A&P") was
$122.5 million, or 19.0% of net
sales, down from prior year A&P of $142.3 million, or 21.1% of net sales.
A&P spending was higher in the prior year in support of new Wet
Shave and Feminine Care products and was lower this quarter in the
Sun and Skin Care segment. On a year-to-date basis, A&P
spending was consistent with the prior year at 14.5% of net
sales.
Selling, general and administrative expense ("SG&A")
was $104.8 million, or 16.2% of net
sales, compared to $165.4 million, or
24.6% of net sales, in the prior year. Included within the
current quarter results were pre-tax costs of $2.8 million related to the spin-off of the
Company's Household Products business in July 2015. Excluding
these spin-off costs, SG&A as a percent of net sales was 15.8%,
including $3.6 million for
amortization of intangible assets not allocated to the
segments. Historical SG&A results on a continuing
operations basis include certain costs associated with supporting
the Household Products business that were not reported in
discontinued operations.
Other expense (income), net was a net expense of
$8.2 million during the quarter
compared to net income of $6.6
million in the prior year. The charge reflects the
impact of foreign currency hedging contract losses, revaluation
losses on nonfunctional currency balance sheet exposures and
$3.2 million of interest expense
related to settlements with tax authorities.
Net earnings in the quarter were $36.7 million, compared to a net loss of
$72.5 million in the third quarter of
fiscal 2015. The increase in earnings was primarily related
to the Venezuela deconsolidation
charge and higher costs related to the spin-off in the prior
year. Third quarter Adjusted EBITDA was $88.6 million versus third quarter 2015
Normalized EBITDA of $99.8 million,
down $11.2 million primarily due to
the year-to-year impact of currency reflected in Other expense
(income), net.
The effective tax rate for the first nine months of
fiscal 2016 was 19.0% as compared to 25.9% in the prior year.
The effective tax rate for fiscal 2016 includes positive
adjustments of prior year tax accruals as well as the favorable
impact of separation and restructuring charges in higher tax rate
jurisdictions. In the third quarter of fiscal 2016, the
favorable adjustments resulted in a tax benefit on earnings.
The effective tax rate for fiscal 2015 reflected a net benefit on a
loss from continuing operations, and was unfavorably impacted by
the $79.3 million Venezuela deconsolidation charge, which had no
accompanying tax benefit. Excluding the impact of the
spin-off and restructuring, the 2016 year-to-date adjusted
effective tax rate was 23.8%, a 220 basis point decrease over the
prior year adjusted rate of 26.0%.
GAAP Diluted EPS was $0.61
in the quarter as compared to a loss of $1.17 in the prior year quarter. Adjusted
EPS for the quarter was $0.66,
compared to $0.43 in the prior year
quarter.
Other Items
The third quarter 2016 results included $2.8 million of pre-tax spin charges compared to
$55.7 million in the same period of
the prior year. In addition, the Company recorded pre-tax
expense of $5.8 million in the third
quarter related to its 2013 restructuring, as compared to
$4.9 million in the prior year.
Adjusted working capital as a percent of net sales was 16.0% at
June 30, 2016, versus 17.5% as of
September 30, 2015. The 150
basis point improvement was driven by improved days payable
outstanding. Adjusted working capital continues to reflect a
higher level of inventory in Feminine Care, which is expected to
return to normal levels as the Company completes the transition of
manufacturing from its Montreal
plant to its Dover plant.
Net cash from operating activities was $4.1 million for the nine months ended
June 30, 2016. During the
second quarter, the Company made a discretionary contribution of
$100.5 million to one of its
international pension plans, which negatively impacted operating
cash flow for the year-to-date period. The Company expects to
have positive net cash from operating activities for the full 2016
fiscal year. In the first nine months of fiscal 2016, the
Company completed share repurchases of more than 1.4 million
shares for $114.5 million, including
nearly half a million shares in the third quarter.
Fiscal 3Q 2016 Operating Segment Results (Unaudited)
Wet Shave (Men's Systems, Women's Systems, Disposables,
Shave Preps)
Wet Shave net sales decreased $4.7
million, or 1.3%. Excluding the impact of currency
movements, organic net sales decreased $6.2
million, or 1.7%. Excluding an estimated $8 million negative impact from international
go-to-market changes, underlying net sales would have grown 60
basis points. Underlying growth was primarily driven by
International with growth in Hydro®, Hydro Silk and
disposables. This was partly offset by lower volumes in
North America related to the
timing of shipments and promotional programs compared to the prior
year, partially offset by favorable price/mix. Wet Shave
segment profit decreased $10.9
million, or 19.3%. Excluding the impact of currency
movements, organic segment profit declined $12.6 million, or 22.3%. The decrease in profit
was driven primarily by volume declines, unfavorable product mix
and transactional currency impacts on cost mix.
Sun and Skin Care (Sun
Care, Wipes, Gloves)
Sun and Skin Care net sales decreased $2.0 million, or 1.3%. Excluding the impact
of currency movements, organic net sales decreased $0.7 million, or 0.5%. Excluding an
estimated $2 million negative impact
from international go-to-market changes, underlying net sales would
have grown 40 basis points, driven primarily by growth in
North America across both the
Banana Boat® and Hawaiian Tropic® brands. Sun and Skin Care
segment profit increased $8.5
million, or 33.0%. Excluding the impact of currency
movements, organic segment profit improved $9.1 million or 35.3%. The profit increase
was driven by favorable product costs and lower A&P spending,
as planned.
Feminine Care (Tampons, Pads, Liners)
Feminine Care net sales decreased $7.0
million, or 6.7%. Excluding the impact of currency
movements, organic net sales decreased $6.6
million, or 6.3%. North
America net sales declined primarily due to unfavorable
comparisons to the prior year pipeline build for the new Sport®
Pads and Liners offerings and lower net sales in StayFree®.
Feminine Care segment profit decreased $0.5
million, or 6.3%. Excluding the impact of currency
movements, organic segment profit was down $0.3 million, or 3.8%. The decrease in
profit was driven by lower net sales in North America, offset by lower A&P
spending as compared to last year's launch activities.
All Other (Infant Care,
all other brands)
All Other net sales decreased $14.1
million, or 30.4%. Excluding the impact of currency
movements and the Industrial sale, organic net sales decreased
$1.5 million, or 3.2%, as continued
growth in Diaper Genie® was offset by lower volumes in infant cups
and bottles resulting from continued competition in the
category. All Other segment profit increased $0.9 million, or 17.3%. Excluding the
impact of currency movements and the Industrial sale, organic
segment profit grew $1.5
million. The profit increase was primarily driven by
favorable product costs.
Full Fiscal Year 2016 Financial Outlook
Net sales are estimated to decrease by approximately 4%,
including an unfavorable currency impact of $25 - $35 million, with the impact of the
Venezuela deconsolidation and the
Industrial sale of $66 million
included in the prior year results. Excluding these items,
organic net sales are estimated to be flat for the full year.
International go-to-market changes are estimated to impact top line
growth by approximately 1.5% for the full year, and are included in
both the reported and organic estimates.
Net Earnings are estimated to be in the range of
$176 - $185 million. Adjusted
EBITDA is now estimated to be in the range of $440 - $450 million (previously $440 - $460 million), including $10 - $15 million of negative currency impact for
the full fiscal year. The updated outlook also factors in the
ongoing impact from hedging and revaluation losses, reflected
within other expense (income), net.
GAAP EPS is estimated to be in the range of $2.95 - $3.10. Adjusted EPS is now
estimated to be in the range of $3.45 -
$3.60 (previously, $3.30 -
$3.50). The Adjusted EPS outlook includes updated
assumptions for the full year tax rate and the impact of currency
and interest expense, reflected in other expense (income), net.
Effective Tax Rate for the fiscal year is estimated to be
in the range of 21% - 23%. Excluding adjustments to tax
expense of approximately $20 million,
which represents the tax impact of spin-off costs and restructuring
related costs, as well as a tax benefit related to the separation,
the Adjusted Effective Tax Rate for the fiscal year is now
estimated to be in the range of 24% - 26% (previously, 29% -
31%).
Other Items: The full-year estimate for
restructuring related costs is now $35 - $40
million (previously, $40 - $45
million) for fiscal 2016, and $10 -
$15 million for fiscal 2017. Incremental restructuring
savings are expected to be approximately $15
million in fiscal 2016 and an additional $40 - $50 million in fiscal 2017 and 2018
combined.
As part of the Company's strategy to drive systematic cost
reduction, in June 2016, the Company
launched a Zero Based Spend (ZBS) initiative to identify and
capture savings in targeted spend categories. This
initiative follows on three years of productivity initiatives,
starting with the 2013 Restructuring program as well as the
initiatives launched with the overall separation program, and is
complementary to the Company's overall trade promotion management
project focused on improving productivity in its trade promotion
spending. The savings will provide ongoing financial and
operational flexibility for reinvestment to reinforce both the
organic growth and margin improvement objectives in the Company's
financial algorithm.
Webcast Information
In conjunction with this announcement, the Company will hold an
investor conference call beginning at 10:00
a.m. Eastern Time today. The call will focus on fiscal
2016 third quarter earnings and the outlook for fiscal 2016.
All interested parties may access a live webcast of this conference
call at www.edgewell.com, under "Investors," and "News and Events"
tabs or by using the following link:
http://ir.edgewell.com/news-and-events/events
For those unable to participate during the live webcast, a
replay will be available on www.edgewell.com, under "Investors,"
"Financial Reports," and "Quarterly Earnings" tabs.
About Edgewell
Edgewell is a leading pure-play consumer products company with
an attractive, diversified portfolio of established brand names
such as Schick® and Wilkinson Sword® men's and women's shaving
systems and disposable razors; Edge® and Skintimate® shave
preparations; Playtex®, Stayfree®, Carefree® and o.b.® feminine
care products; Banana Boat® and Hawaiian Tropic® sun care products;
Playtex® infant feeding, Diaper Genie® and gloves; and Wet Ones®
moist wipes. The Company has a broad global footprint and
operates in more than 50 markets, including the U.S., Canada, Mexico, Germany, Japan and Australia, with approximately 6,000 employees
worldwide.
Non-GAAP Financial Measures. While the Company
reports financial results in accordance with accounting principles
generally accepted in the U.S. ("GAAP"), this discussion also
includes Non-GAAP measures. These Non-GAAP measures are
referred to as "adjusted" or "organic" and exclude expenses
associated with the Venezuela
deconsolidation charge, Industrial sale charges, spin costs,
restructuring charges (including 2013 restructuring and spin
restructuring), Cost of early debt retirements and adjustments to
prior years' tax accruals. Reconciliations of the Company's
Non-GAAP measures, including reconciliations of measures related to
the Company's fiscal 2016 financial outlook, are included within
the Notes to Condensed Consolidated Financial Statements included
with this release.
This Non-GAAP information is provided as a supplement to, not as
a substitute for, or as superior to, measures of financial
performance prepared in accordance with GAAP. The Company
uses this Non-GAAP information internally to make operating
decisions and believes it is helpful to investors because it allows
more meaningful period-to-period comparisons of ongoing operating
results. Given the various significant one-time events that
took place at the Company during fiscal 2016 and fiscal 2015 - most
prominently the spin-off of the Household Products business and the
resulting go-to-market impacts, and also the deconsolidation of the
Company's Venezuela operations and
the sale of the Industrial business - the Company views the use of
Non-GAAP measures that take into account the impact of these unique
events as particularly valuable in understanding the Company's
underlying operational results and providing insights into future
performance.
The information can also be used to perform analysis and to
better identify operating trends that may otherwise be masked or
distorted by the types of items that are excluded. This
Non-GAAP information is a component in determining management's
incentive compensation. Finally, the Company believes this
information provides a higher degree of transparency. The
following provides additional detail on the Company's Non-GAAP
measures.
- The Company analyzes its net revenue and segment profit on an
organic basis to better measure the comparability of results
between periods. Organic net sales and segment profit exclude
the impact of changes in foreign currency, the impact of
acquisitions and dispositions (including the results of the
Industrial business) and the period-over-period change resulting
from the deconsolidation of the Company's Venezuela operations. Underlying net
sales represents organic net sales adjusted for international
go-to-market impacts, as defined below. This information is
provided because these fluctuations can distort the underlying
change in net sales and segment profit either positively or
negatively.
- To compete more effectively as an independent company, the
Company has increased its use of third-party distributors and
wholesalers, impacting sales and gross margin, and has decreased or
eliminated its business operations in certain countries, impacting
SG&A, consistent with its international go-to-market
strategy. Within this press release the Company discusses
go-to-market impacts, which reflect its best estimate on the impact
of these international go-to-market changes and exits, and
represent the year-over-year change in those markets. The
Company believes it has realized the majority of the impact from
these changes in the first three quarters of fiscal 2016.
- Adjusted EBITDA is defined as earnings before income taxes,
interest expense, net, depreciation and amortization and excludes
items such as the Venezuela
deconsolidation charge, spin costs, restructuring charges and
Industrial sale charges.
- Historical results on a continuing operations basis include
certain costs associated with supporting the Company's former
Household Products business that are not reported in discontinued
operations. These costs affect SG&A, interest expense,
spin costs, restructuring and tax. As a result, EPS and
EBITDA on both a GAAP and Non-GAAP basis for this quarter and
fiscal year are not comparable to the prior year, and are not
comparable for each of the first three quarters of fiscal
2016. To address this, the Company has provided Normalized
EBITDA, which adjusts corporate SG&A expenses to reflect the
Company's estimated full-year run rate. Normalized EBITDA is
presented to provide a basis for comparing to future
performance. A reconciliation of Fiscal 2015 Consolidated
Statement of Earnings and Normalized EBITDA by quarter was
announced in a Form 8-K furnished on December 1, 2015, and can be found on the
Company's website www.edgewell.com, under "Investors," and
"Financial Reports," "Key Statistics" tabs or by using the
following link:
http://ir.edgewell.com/financial-reports/key-statistics
- Adjusted EPS is defined as diluted earnings per share excluding
items such as the Venezuela
deconsolidation charge, spin costs, restructuring charges,
Industrial sale charges, Cost of early debt retirements and the
related tax effects of these items.
- The Adjusted effective tax rate is defined as the effective tax
rate excluding the Venezuela
deconsolidation charge, spin costs, restructuring charges,
Industrial sale charges, Cost of early debt retirements and the
related tax effects of these items, as well as adjustments to prior
years' tax accruals, from the income tax provision and earnings
before income taxes.
- Adjusted working capital is defined as receivables, less trade
allowances in accrued liabilities, plus inventories, less accounts
payable, and is calculated using an average of the trailing
four-quarter end balances. Adjusted working capital also
excludes amounts related to the Household Products business.
- Free cash flow is defined as net cash from operating activities
less capital expenditures. Free cash flow conversion is
defined as free cash flow as a percentage of net earnings.
Forward-Looking Statements. This document contains
both historical and forward-looking statements.
Forward-looking statements are not based on historical facts, but
instead reflect the Company's expectations, estimates or
projections concerning future results or events, including, without
limitation, the future earnings and performance of Edgewell
Personal Care Company or any of its businesses. These
statements generally can be identified by the use of
forward-looking words or phrases such as "believe," "expect,"
"expectation," "anticipate," "may," "could," "intend," "belief,"
"estimate," "plan," "target," "predict," "likely," "will,"
"should," "forecast," "outlook," or other similar words or
phrases. These statements are not guarantees of performance
and are inherently subject to known and unknown risks,
uncertainties and assumptions that are difficult to predict and
could cause the Company's actual results to differ materially from
those indicated by those statements. The Company cannot
assure you that any of its expectations, estimates or projections
will be achieved. The forward-looking statements included in
this document are only made as of the date of this document and the
Company disclaims any obligation to publicly update any
forward-looking statement to reflect subsequent events or
circumstances. Numerous factors could cause the Company's
actual results and events to differ materially from those expressed
or implied by forward-looking statements, including, without
limitation:
- The Company is subject to risks related to its international
operations, such as global economic conditions, currency
fluctuations and its changing international go-to-market strategy,
that could adversely affect its results of operations;
- The Company may not achieve some or all of the expected
benefits of the spin-off of its Household Products business, and
this may materially adversely affect its business;
- The Company's manufacturing facilities, supply channels or
other business operations may be subject to disruption from events
beyond its control;
- The Company's access to capital markets and borrowing capacity
could be limited;
- If the Company cannot continue to develop new products in a
timely manner, and at favorable margins, it may not be able to
compete effectively;
- The Company has a substantial level of indebtedness and is
subject to various covenants relating to such indebtedness, which
could limit its discretion to operate and grow its business;
- The Company faces risks arising from the restructuring of its
operations and uncertainty with respect to its ability to achieve
its estimated cost savings;
- Loss of any of the Company's principal customers and emergence
of new sales channels could significantly decrease its sales and
profitability;
- The Company may not be able to attract, retain and develop key
personnel;
- The Company may experience losses or be subject to increased
funding and expenses related to its pension plans;
- The Company may not be able to continue to identify and
complete strategic acquisitions and effectively integrate acquired
companies to achieve desired financial benefits;
- The Company's Wet Shave segment's men's shaving systems
category has faced relatively flat to declining sales;
- The Company's business involves the potential for product
liability and other claims against it, which could affect its
results of operations and financial condition and result in product
recalls or withdrawals;
- A failure of a key information technology system or a breach of
the Company's information security could adversely impact its
ability to conduct business;
- The resolution of the Company's tax contingencies may result in
additional tax liabilities, which could adversely impact its cash
flows and results of operations;
- If the Company fails to adequately protect its intellectual
property rights, competitors may manufacture and market similar
products, which could adversely affect its market share and results
of operations; and
- Potential liabilities in connection with the Separation may
arise under fraudulent conveyance and transfer laws and legal
capital requirements.
In addition, other risks and uncertainties not presently known
to the Company or that it presently considers immaterial could
affect the accuracy of any such forward-looking statements.
The list of factors above is illustrative, but not
exhaustive. All forward-looking statements should be
evaluated with the understanding of their inherent
uncertainty. Additional risks and uncertainties include those
detailed from time to time in the Company's publicly filed
documents, including in Item 1A. Risk Factors of Part I of the
Company's Annual Report on Form 10-K for the year ended
September 30, 2015.
EDGEWELL PERSONAL
CARE COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (unaudited, in
millions, except per share data)
|
|
|
|
|
|
Quarter Ended June
30,
|
|
Nine Months Ended
June 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
645.1
|
|
|
$
|
672.9
|
|
|
$
|
1,751.4
|
|
|
$
|
1,861.1
|
|
Cost of products
sold
|
333.9
|
|
|
349.5
|
|
|
901.6
|
|
|
946.6
|
|
Gross
profit
|
311.2
|
|
|
323.4
|
|
|
849.8
|
|
|
914.5
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expense
|
104.8
|
|
|
165.4
|
|
|
304.9
|
|
|
448.1
|
|
Advertising and sales
promotion expense
|
122.5
|
|
|
142.3
|
|
|
254.1
|
|
|
271.4
|
|
Research and
development expense
|
17.5
|
|
|
16.8
|
|
|
50.2
|
|
|
48.5
|
|
Venezuela
deconsolidation charge
|
—
|
|
|
—
|
|
|
—
|
|
|
79.3
|
|
Spin restructuring
charges
|
—
|
|
|
4.3
|
|
|
—
|
|
|
28.3
|
|
2013 restructuring
charges
|
5.8
|
|
|
4.6
|
|
|
29.3
|
|
|
20.4
|
|
Industrial sale
charges
|
—
|
|
|
21.9
|
|
|
0.2
|
|
|
21.9
|
|
Interest expense
associated with debt
|
18.3
|
|
|
27.5
|
|
|
53.8
|
|
|
83.4
|
|
Cost of early debt
retirements
|
—
|
|
|
59.6
|
|
|
—
|
|
|
59.6
|
|
Other expense
(income), net
|
8.2
|
|
|
(6.6)
|
|
|
1.2
|
|
|
(8.3)
|
|
Earnings (loss) from
continuing operations before income taxes
|
34.1
|
|
|
(112.4)
|
|
|
156.1
|
|
|
(138.1)
|
|
Income tax (benefit)
provision
|
(2.6)
|
|
|
(44.7)
|
|
|
29.6
|
|
|
(35.7)
|
|
Earnings (loss) from
continuing operations
|
36.7
|
|
|
(67.7)
|
|
|
126.5
|
|
|
(102.4)
|
|
(Loss) earnings from
discontinued operations, net of tax
|
—
|
|
|
(4.8)
|
|
|
—
|
|
|
46.6
|
|
Net earnings
(loss)
|
$
|
36.7
|
|
|
$
|
(72.5)
|
|
|
$
|
126.5
|
|
|
$
|
(55.8)
|
|
|
|
|
|
|
|
|
|
Basic earnings
(loss) per share:
|
|
|
|
|
|
|
|
Continuing operations
|
$
|
0.62
|
|
|
(1.09)
|
|
|
$
|
2.13
|
|
|
(1.65)
|
|
Discontinued operations
|
—
|
|
|
(0.08)
|
|
|
—
|
|
|
0.75
|
|
Net earnings (loss)
|
0.62
|
|
|
(1.17)
|
|
|
2.13
|
|
|
(0.90)
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share:
|
|
|
|
|
|
|
|
Continuing operations
|
$
|
0.61
|
|
|
$
|
(1.09)
|
|
|
$
|
2.11
|
|
|
$
|
(1.65)
|
|
Discontinued operations
|
—
|
|
|
(0.08)
|
|
|
—
|
|
|
0.75
|
|
Net earnings (loss)
|
0.61
|
|
|
(1.17)
|
|
|
2.11
|
|
|
(0.90)
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
59.1
|
|
|
62.2
|
|
|
59.4
|
|
|
62.1
|
|
Diluted
|
59.7
|
|
|
62.2
|
|
|
59.9
|
|
|
62.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Accompanying
Notes.
|
EDGEWELL PERSONAL
CARE COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in
millions)
|
|
|
|
|
Assets
|
June 30,
2016
|
|
September 30,
2015
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
691.5
|
|
|
$
|
712.1
|
|
Trade receivables,
net
|
308.7
|
|
|
279.8
|
|
Inventories
|
333.6
|
|
|
332.8
|
|
Other current assets
(1)
|
174.6
|
|
|
311.9
|
|
Total current
assets
|
1,508.4
|
|
|
1,636.6
|
|
Property, plant and
equipment, net
|
475.3
|
|
|
476.1
|
|
Goodwill
|
1,419.9
|
|
|
1,421.8
|
|
Other intangible
assets, net
|
1,394.9
|
|
|
1,408.5
|
|
Other assets
(1)
|
55.5
|
|
|
48.7
|
|
Total
assets
|
$
|
4,854.0
|
|
|
$
|
4,991.7
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
Current
liabilities
|
|
|
|
Current maturities of
long-term debt
|
$
|
278.5
|
|
|
$
|
—
|
|
Notes
payable
|
17.0
|
|
|
17.5
|
|
Accounts
payable
|
203.2
|
|
|
236.9
|
|
Other current
liabilities (1)
|
397.8
|
|
|
412.4
|
|
Total current
liabilities
|
896.5
|
|
|
666.8
|
|
Long-term
debt
|
1,579.2
|
|
|
1,704.0
|
|
Deferred income tax
liabilities (1)
|
258.7
|
|
|
335.8
|
|
Other
liabilities
|
246.3
|
|
|
421.0
|
|
Total
liabilities
|
2,980.7
|
|
|
3,127.6
|
|
Shareholders'
equity
|
|
|
|
Common
shares
|
0.7
|
|
|
0.7
|
|
Additional paid-in
capital
|
1,641.3
|
|
|
1,644.2
|
|
Retained
earnings
|
896.9
|
|
|
772.9
|
|
Treasury
shares
|
(484.3)
|
|
|
(382.2)
|
|
Accumulated other
comprehensive loss
|
(181.3)
|
|
|
(171.5)
|
|
Total shareholders'
equity
|
1,873.3
|
|
|
1,864.1
|
|
Total liabilities and
shareholders' equity
|
$
|
4,854.0
|
|
|
$
|
4,991.7
|
|
|
|
(1)
|
The Company early
adopted new accounting guidance during the first quarter of fiscal
2016 which required all deferred income tax assets and liabilities
to be classified as non-current, resulting in reductions to Other
current assets, Other current liabilities and Deferred income tax
liabilities of $85.1, $0.1 and $76.8, respectively, and an increase
in Other assets of $8.2 as of June 30, 2016. The
prospective adoption of the new guidance had no impact on the
balance sheet as of September 30, 2015.
|
|
|
|
|
See Accompanying
Notes.
|
EDGEWELL PERSONAL
CARE COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited,
in millions)
|
|
|
|
Nine Months Ended
June 30,
|
|
2016
|
|
2015
|
Cash Flow from
Operating Activities
|
|
|
|
Net earnings
(loss)
|
$
|
126.5
|
|
|
$
|
(55.8)
|
|
Non-cash
restructuring costs
|
2.2
|
|
|
40.9
|
|
Depreciation and
amortization
|
69.2
|
|
|
93.5
|
|
Venezuela
deconsolidation charge
|
—
|
|
|
144.5
|
|
Non-cash items
included in income, net
|
22.0
|
|
|
19.3
|
|
International pension
funding
|
(100.5)
|
|
|
—
|
|
Other, net
|
(28.2)
|
|
|
(28.8)
|
|
Changes in current
assets and liabilities used in operations
|
(87.1)
|
|
|
(189.9)
|
|
Net cash from
operating activities
|
4.1
|
|
|
23.7
|
|
|
|
|
|
Cash Flow from
Investing Activities
|
|
|
|
Capital
expenditures
|
(50.9)
|
|
|
(72.4)
|
|
Change related to
Venezuelan operations
|
—
|
|
|
(93.8)
|
|
Acquisitions, net of
cash acquired
|
—
|
|
|
(12.1)
|
|
Proceeds from sale of
assets
|
—
|
|
|
14.3
|
|
Change in restricted
cash
|
—
|
|
|
13.9
|
|
Net cash used by
investing activities
|
(50.9)
|
|
|
(150.1)
|
|
|
|
|
|
Cash Flow from
Financing Activities
|
|
|
|
Cash proceeds from
debt with original maturities greater than 90 days
|
656.3
|
|
|
2,414.0
|
|
Cash payments on debt
with original maturities greater than 90 days
|
(501.0)
|
|
|
(1,900.0)
|
|
Net decrease in debt
with original maturities of 90 days or less
|
(15.5)
|
|
|
(270.5)
|
|
Deferred finance
expense
|
(0.6)
|
|
|
(15.1)
|
|
Common shares
purchased
|
(114.5)
|
|
|
—
|
|
Cash dividends
paid
|
—
|
|
|
(93.2)
|
|
Proceeds from
issuance of common shares, net
|
—
|
|
|
4.4
|
|
Excess tax benefits
from share-based payments
|
—
|
|
|
9.3
|
|
Net cash from
financing activities
|
24.7
|
|
|
148.9
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
1.5
|
|
|
(61.4)
|
|
|
|
|
|
Net decrease in cash
and cash equivalents
|
(20.6)
|
|
|
(38.9)
|
|
Cash and cash
equivalents, beginning of period
|
712.1
|
|
|
1,129.0
|
|
Cash and cash
equivalents, end of period
|
$
|
691.5
|
|
|
$
|
1,090.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Accompanying
Notes.
|
EDGEWELL PERSONAL
CARE COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS (unaudited, in millions, except per share
data)
|
|
|
|
|
|
Note 1 -
Segments
|
|
|
|
|
|
|
The Company conducts
its business in the following four segments: Wet Shave, Sun and
Skin Care, Feminine Care and All Other. Segment performance
is evaluated based on segment profit, exclusive of general
corporate expenses, share-based compensation costs, costs
associated with most restructuring initiatives (including the Spin
restructuring and the 2013 Restructuring), the Venezuela
deconsolidation charge, the sale of the Industrial business and
amortization of intangible assets. Financial items, such as
interest income and expense, are managed on a global basis at the
corporate level. The exclusion of such charges from segment
results reflects management's view on how it evaluates segment
performance.
|
|
|
|
|
|
|
On July 1, 2015, the
Company completed the separation of its Household Products business
into a separate publicly-traded company (the "Spin" or the
"Separation"). The historical financial results of the
Company's Household Products business are presented as discontinued
operations on the Condensed Consolidated Statements of Earnings
and, as such, have been excluded from both continuing operations
and segment results for all periods presented. The prior year
Condensed Consolidated Statements of Cash Flows has not been
adjusted to reflect the effect of the Separation, as the Company
had not adopted the Financial Accounting Standards Board's updated
guidance on the presentation of discontinued operations at the time
of Separation. Historical results on a continuing operations
basis include certain costs associated with supporting the
Household Products business that were not reported in discontinued
operations.
|
|
|
|
|
|
|
The Company incurred
incremental costs to evaluate, plan and execute the
Separation. For the third quarter and first nine months
of fiscal 2016, $2.8 and $11.8, respectively, of pre-tax charges
were recorded in Selling, general and administrative expense
("SG&A") and for the first nine months of fiscal 2016, $0.2 of
pre-tax charges were recorded in Cost of products sold. For
the third quarter and first nine months of fiscal 2015, $52.4 and
$107.7 of pre-tax charges, respectively, were recorded in SG&A
and $3.3 and $4.0 were recorded in Cost of products sold.
Additionally, $4.3 and $28.3 of Spin restructuring costs were
recorded during the third quarter and first nine months of fiscal
2015, respectively.
|
|
|
|
|
|
|
For the third quarter
and first nine months of fiscal 2016, the Company recorded pre-tax
expense of $5.8 and $29.3, respectively, related to its 2013
restructuring, as compared to pre-tax expense of $4.6 and $20.4 for
the third quarter and first nine months of fiscal 2015,
respectively. The 2013 restructuring charges were reported as
a separate line item on the income statement.
|
|
|
|
|
|
|
Segment net sales and
profitability are presented below:
|
|
|
|
|
|
|
|
Quarter Ended June
30,
|
|
Nine Months Ended
June 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Net
Sales
|
|
|
|
|
|
|
|
|
Wet Shave
|
$
|
364.6
|
|
|
$
|
369.3
|
|
|
$
|
1,034.3
|
|
|
$
|
1,082.9
|
|
|
Sun and Skin
Care
|
151.3
|
|
|
153.3
|
|
|
337.3
|
|
|
337.8
|
|
|
Feminine
Care
|
97.1
|
|
|
104.1
|
|
|
281.2
|
|
|
301.5
|
|
|
All Other
|
32.1
|
|
|
46.2
|
|
|
98.6
|
|
|
138.9
|
|
|
Total net
sales
|
$
|
645.1
|
|
|
$
|
672.9
|
|
|
$
|
1,751.4
|
|
|
$
|
1,861.1
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
|
|
|
|
|
|
|
Wet Shave
|
$
|
45.5
|
|
|
$
|
56.4
|
|
|
$
|
190.0
|
|
|
$
|
246.7
|
|
|
Sun and Skin
Care
|
34.3
|
|
|
25.8
|
|
|
75.2
|
|
|
66.8
|
|
|
Feminine
Care
|
7.4
|
|
|
7.9
|
|
|
35.5
|
|
|
44.0
|
|
|
All Other
|
6.1
|
|
|
5.2
|
|
|
21.3
|
|
|
19.1
|
|
|
Total segment
profit
|
93.3
|
|
|
95.3
|
|
|
322.0
|
|
|
376.6
|
|
|
General corporate and
other expenses
|
(20.5)
|
|
|
(36.6)
|
|
|
(58.5)
|
|
|
(106.6)
|
|
|
Venezuela
deconsolidation charge
|
—
|
|
|
—
|
|
|
—
|
|
|
(79.3)
|
|
|
Spin costs
(1)
|
(2.8)
|
|
|
(55.7)
|
|
|
(12.0)
|
|
|
(111.7)
|
|
|
Spin restructuring
charges
|
—
|
|
|
(4.3)
|
|
|
—
|
|
|
(28.3)
|
|
|
2013 restructuring
and related costs (2)
|
(5.8)
|
|
|
(4.9)
|
|
|
(29.4)
|
|
|
(20.7)
|
|
|
Industrial sale
charges
|
—
|
|
|
(21.9)
|
|
|
(0.2)
|
|
|
(21.9)
|
|
|
Amortization of
intangibles
|
(3.6)
|
|
|
(3.8)
|
|
|
(10.8)
|
|
|
(11.5)
|
|
|
Cost of early debt
retirements
|
—
|
|
|
(59.6)
|
|
|
—
|
|
|
(59.6)
|
|
|
Interest and other
expense, net
|
(26.5)
|
|
|
(20.9)
|
|
|
(55.0)
|
|
|
(75.1)
|
|
|
Total earnings
(loss) from continuing operations before income
taxes
|
$
|
34.1
|
|
|
$
|
(112.4)
|
|
|
$
|
156.1
|
|
|
$
|
(138.1)
|
|
|
|
(1)
|
Includes pre-tax
SG&A of $2.8 and $52.4 for the third quarters of fiscal 2016
and 2015, respectively, and $11.8 and $107.7 for the first nine
months of fiscal 2016 and 2015, respectively, and pre-tax Cost of
products sold of $3.3 for the third quarter of fiscal 2015 and $0.2
and $4.0 for the first nine months of fiscal 2016 and 2015,
respectively.
|
|
|
(2)
|
Includes pre-tax Cost
of products sold of $0.1 for the first nine months of fiscal 2016
associated with obsolescence charges related to the exit of certain
non-core product lines as part of the restructuring. There
were no non-core inventory obsolescence charges during the third
quarter and first nine months of fiscal 2015. Also includes
$0.3 pre-tax SG&A costs associated with certain information
technology and related activities during the third quarter and
first nine months of fiscal 2015. These non-core inventory
obsolescence charges and information technology costs are
considered part of the total project costs incurred for the
restructuring project.
|
Note 2 - GAAP to
Non-GAAP Reconciliations
|
|
|
|
Basic earnings per
share is based on the average number of common shares outstanding
during the period. Diluted earnings per share is based on the
weighted average number of shares used for the basic earnings per
share calculation, adjusted for the dilutive effect of share
options and restricted stock equivalent ("RSE") awards.
|
|
|
|
The following table
provides a reconciliation of Net earnings (loss) from continuing
operations and Net earnings (loss) per diluted share ("EPS") to
Adjusted net earnings and Adjusted EPS, which are Non-GAAP
measures.
|
|
|
|
|
Quarter Ended June
30,
|
|
|
Net
Earnings
|
|
Diluted
EPS
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Net Earnings
(Loss) from Continuing Operations and Diluted EPS - GAAP
(Unaudited)
|
$
|
36.7
|
|
|
$
|
(67.7)
|
|
|
$
|
0.61
|
|
|
$
|
(1.09)
|
|
|
Spin
costs (1)
|
2.8
|
|
|
55.7
|
|
|
0.05
|
|
|
0.89
|
|
|
Spin
restructuring charges
|
—
|
|
|
4.3
|
|
|
—
|
|
|
0.07
|
|
|
2013
restructuring and related charges, net (2)
|
5.8
|
|
|
4.9
|
|
|
0.10
|
|
|
0.08
|
|
|
Industrial sale charges
|
—
|
|
|
21.9
|
|
|
—
|
|
|
0.35
|
|
|
Cost of
early debt retirements
|
—
|
|
|
59.6
|
|
|
—
|
|
|
0.95
|
|
|
Income
taxes (3)
|
(6.1)
|
|
|
(51.5)
|
|
|
(0.10)
|
|
|
(0.82)
|
|
|
Adjusted Net Earnings and Adjusted Diluted EPS -
Non-GAAP
|
$
|
39.2
|
|
|
$
|
27.2
|
|
|
$
|
0.66
|
|
|
$
|
0.43
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares - Diluted
|
|
|
|
|
59.7
|
|
|
62.2
|
|
|
|
(1)
|
Includes SG&A of
$2.8 and $52.4 for the third quarters of fiscal 2016 and 2015,
respectively, and Cost of products sold of $3.3 for the third
quarter of fiscal 2015.
|
|
|
(2)
|
Includes costs of
$0.3 for the third quarter of fiscal 2015 associated with
certain information technology and related activities, which are
included in SG&A. These information technology costs are
considered part of the total project costs incurred for the
restructuring project.
|
|
|
(3)
|
Includes adjustments
to prior years' tax accruals of $3.3 and $3.7 for the third
quarters of fiscal 2016 and 2015, respectively.
|
|
Nine Months Ended
June 30,
|
|
Net
Earnings
|
|
Diluted
EPS
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net Earnings
(Loss) from Continuing Operations and Diluted EPS - GAAP
(Unaudited)
|
$
|
126.5
|
|
|
$
|
(102.4)
|
|
|
$
|
2.11
|
|
|
$
|
(1.65)
|
|
Venezuela deconsolidation
charge
|
—
|
|
|
79.3
|
|
|
—
|
|
|
1.27
|
|
Spin costs
(1)
|
12.0
|
|
|
111.7
|
|
|
0.20
|
|
|
1.79
|
|
Spin restructuring
charges
|
—
|
|
|
28.3
|
|
|
—
|
|
|
0.45
|
|
2013 restructuring and
related charges, net (2)
|
29.4
|
|
|
20.7
|
|
|
0.50
|
|
|
0.33
|
|
Industrial sale
charges
|
0.2
|
|
|
21.9
|
|
|
—
|
|
|
0.35
|
|
Cost of early debt
retirements
|
—
|
|
|
59.6
|
|
|
—
|
|
|
0.95
|
|
Income taxes
(3)
|
(17.4)
|
|
|
(83.4)
|
|
|
(0.29)
|
|
|
(1.33)
|
|
Impact of basic/dilutive
shares (4)
|
—
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
Adjusted Net Earnings and Adjusted Diluted EPS -
Non-GAAP
|
$
|
150.7
|
|
|
$
|
135.7
|
|
|
$
|
2.52
|
|
|
$
|
2.17
|
|
|
|
|
|
|
|
|
|
Weighted average
shares - Diluted
|
|
|
|
|
59.9
|
|
|
62.1
|
|
|
|
(1)
|
Includes SG&A of
$11.8 and $107.7 for the first nine months of fiscal 2016 and 2015,
respectively, and Cost of products sold of $0.2 and $4.0 for the
first nine months of fiscal 2016 and 2015, respectively.
|
|
|
(2)
|
Includes Cost of
products sold of $0.1 for the first nine months of fiscal 2016
associated with obsolescence charges related to the exit of certain
non-core product lines as part of the restructuring. There
were no non-core inventory obsolescence charges during the first
nine months of fiscal 2015. Also includes costs of $0.3 for
the first nine months of fiscal 2015 associated with
certain information technology and related activities, which are
included in SG&A. These non-core inventory obsolescence
charges and information technology costs are considered part of the
total project costs incurred for the restructuring
project.
|
|
|
(3)
|
Includes adjustments
to prior years' tax accruals of $3.3 and $5.3 for the first nine
months of fiscal 2016 and 2015, respectively.
|
|
|
(4)
|
All EPS impacts are
calculated using diluted weighted-average shares outstanding.
For the first nine months of fiscal 2015, this reflects the impact
of 0.4 dilutive RSE awards, which were excluded from the GAAP EPS
calculation due to the reported net loss.
|
The following tables
provide a GAAP to Non-GAAP reconciliation of certain line items
from the Condensed Consolidated Statement of Earnings:
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended June
30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
SG&A
|
|
EBIT
(1)
|
|
Net
Earnings
|
|
Diluted
EPS
|
GAAP -
Reported
|
$
|
311.2
|
|
|
$
|
104.8
|
|
|
$
|
34.1
|
|
|
$
|
36.7
|
|
|
$
|
0.61
|
|
% of net
sales
|
48.2%
|
|
|
16.2%
|
|
|
|
|
|
|
|
Spin costs
|
—
|
|
|
2.8
|
|
|
2.8
|
|
|
1.9
|
|
|
0.03
|
|
2013 restructuring
and related charges, net
|
—
|
|
|
—
|
|
|
5.8
|
|
|
3.9
|
|
|
0.08
|
|
Industrial sale
charges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Adjustments to prior
years' tax accruals
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.3)
|
|
|
(0.06)
|
|
Total Adjusted
Non-GAAP
|
$
|
311.2
|
|
|
$
|
102.0
|
|
|
$
|
42.7
|
|
|
$
|
39.2
|
|
|
$
|
0.66
|
|
% of net
sales
|
48.2%
|
|
|
15.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
SG&A
|
|
EBIT
(1)
|
|
Net
Earnings
|
|
Diluted
EPS
|
GAAP -
Reported
|
$
|
849.8
|
|
|
$
|
304.9
|
|
|
$
|
156.1
|
|
|
$
|
126.5
|
|
|
$
|
2.11
|
|
% of net
sales
|
48.5%
|
|
|
17.4%
|
|
|
|
|
|
|
|
Spin costs
|
0.2
|
|
|
11.8
|
|
|
12.0
|
|
|
7.6
|
|
|
0.13
|
|
2013 restructuring
and related charges, net (2)
|
0.1
|
|
|
—
|
|
|
29.4
|
|
|
19.8
|
|
|
0.34
|
|
Industrial sale
charges
|
—
|
|
|
—
|
|
|
0.2
|
|
|
0.1
|
|
|
—
|
|
Adjustments to prior
years' tax accruals
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.3)
|
|
|
(0.06)
|
|
Total Adjusted
Non-GAAP
|
$
|
850.1
|
|
|
$
|
293.1
|
|
|
$
|
197.7
|
|
|
$
|
150.7
|
|
|
$
|
2.52
|
|
% of net
sales
|
48.5%
|
|
|
16.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended June
30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
SG&A
|
|
EBIT
(1)
|
|
Net Earnings
(3)
|
|
Diluted
EPS
|
GAAP -
Reported
|
$
|
323.4
|
|
|
$
|
165.4
|
|
|
$
|
(112.4)
|
|
|
$
|
(67.7)
|
|
|
$
|
(1.09)
|
|
% of net
sales
|
48.1%
|
|
|
24.6%
|
|
|
|
|
|
|
|
Spin costs
|
3.3
|
|
|
52.4
|
|
|
55.7
|
|
|
39.7
|
|
|
0.64
|
|
Spin restructuring
charges
|
—
|
|
|
—
|
|
|
4.3
|
|
|
3.1
|
|
|
0.05
|
|
2013 restructuring
and related charges, net (2)
|
—
|
|
|
0.3
|
|
|
4.9
|
|
|
4.6
|
|
|
0.07
|
|
Industrial sale
charges
|
—
|
|
|
—
|
|
|
21.9
|
|
|
13.8
|
|
|
0.22
|
|
Cost of early debt
retirements
|
—
|
|
|
—
|
|
|
59.6
|
|
|
37.4
|
|
|
0.60
|
|
Adjustments to prior
years' tax accruals
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.7)
|
|
|
(0.06)
|
|
Total Adjusted
Non-GAAP
|
$
|
326.7
|
|
|
$
|
112.7
|
|
|
$
|
34.0
|
|
|
$
|
27.2
|
|
|
$
|
0.43
|
|
% of net
sales
|
48.6%
|
|
|
16.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
SG&A
|
|
EBIT
(1)
|
|
Net Earnings
(3)
|
|
Diluted EPS
(4)
|
GAAP -
Reported
|
$
|
914.5
|
|
|
$
|
448.1
|
|
|
$
|
(138.1)
|
|
|
$
|
(102.4)
|
|
|
$
|
(1.65)
|
|
% of net
sales
|
49.1%
|
|
|
24.1%
|
|
|
|
|
|
|
|
Venezuela
deconsolidation charge
|
—
|
|
|
—
|
|
|
79.3
|
|
|
79.3
|
|
|
1.27
|
|
Spin costs
|
4.0
|
|
|
107.7
|
|
|
111.7
|
|
|
78.3
|
|
|
1.26
|
|
Spin restructuring
charges
|
—
|
|
|
—
|
|
|
28.3
|
|
|
20.1
|
|
|
0.32
|
|
2013 restructuring
and related charges, net (2)
|
—
|
|
|
0.3
|
|
|
20.7
|
|
|
14.5
|
|
|
0.23
|
|
Industrial sale
charges
|
—
|
|
|
—
|
|
|
21.9
|
|
|
13.8
|
|
|
0.22
|
|
Cost of early debt
retirements
|
—
|
|
|
—
|
|
|
59.6
|
|
|
37.4
|
|
|
0.60
|
|
Adjustments to prior
years' tax accruals
|
—
|
|
|
—
|
|
|
—
|
|
|
(5.3)
|
|
|
(0.09)
|
|
Impact of
basic/dilutive shares (4)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
Total Adjusted
Non-GAAP
|
$
|
918.5
|
|
|
$
|
340.1
|
|
|
$
|
183.4
|
|
|
$
|
135.7
|
|
|
$
|
2.17
|
|
% of net
sales
|
49.4%
|
|
|
18.3%
|
|
|
|
|
|
|
|
|
|
(1)
|
EBIT is defined as
Earnings (loss) from continuing operations before income
taxes.
|
|
|
(2)
|
Includes Cost of
products sold of $0.1 for the first nine months of fiscal 2016
associated with obsolescence charges related to the exit of certain
non-core product lines as part of the restructuring. Also
includes costs of $0.3 for the third quarter and first nine
months of fiscal 2015 associated with certain information
technology and related activities, which are included in
SG&A. These non-core inventory obsolescence charges and
information technology costs are considered part of the total
project costs incurred for the restructuring
project.
|
|
|
(3)
|
For the third quarter
and first nine months of fiscal 2015, Net Earnings is defined as
Earnings (loss) from continuing operations.
|
|
|
(4)
|
All EPS impacts are
calculated using diluted weighted-average shares outstanding.
For the first nine months of fiscal 2015, this reflects the impact
of 0.4 dilutive RSE awards which were excluded from the GAAP EPS
calculation due to the reported net loss.
|
The following table
provides a reconciliation of the effective tax rate to the adjusted
effective tax rate, which is a Non-GAAP measure:
|
|
|
|
|
|
Nine Months Ended
June 30, 2016
|
|
Nine Months Ended
June 30, 2015
|
|
Reported
|
|
Adjustments
(1)
|
|
Adjusted
(Non-GAAP)
|
|
Reported
|
|
Adjustments
(1)
|
|
Adjusted
(Non-GAAP)
|
Earnings (loss) from
continuing operations before income taxes
|
$
|
156.1
|
|
|
$
|
41.6
|
|
|
$
|
197.7
|
|
|
$
|
(138.1)
|
|
|
$
|
321.5
|
|
|
$
|
183.4
|
|
Income tax provision
(benefit)
|
29.6
|
|
|
17.4
|
|
|
47.0
|
|
|
(35.7)
|
|
|
83.4
|
|
|
47.7
|
|
Earnings (loss) from
continuing operations
|
$
|
126.5
|
|
|
$
|
24.2
|
|
|
$
|
150.7
|
|
|
$
|
(102.4)
|
|
|
$
|
238.1
|
|
|
$
|
135.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
19.0%
|
|
|
|
|
|
|
25.9%
|
|
|
|
|
|
Adjusted effective
tax rate
|
|
|
|
|
23.8%
|
|
|
|
|
|
|
26.0%
|
|
|
|
(1)
|
Includes adjustments
for the Venezuela deconsolidation charge, Spin costs, Spin
restructuring charges, 2013 restructuring and related charges, net,
Industrial sale charges, Cost of early debt retirements and the
associated tax impact of these charges, as well as adjustments to
prior years' tax accruals. See reconciliation of Net earnings
to Adjusted net earnings.
|
The following tables
provide reconciliations of the Non-GAAP measures included within
the Company's outlook for projected fiscal 2016 results, including
organic net sales, Adjusted EPS and Adjusted EBITDA:
|
|
|
|
Organic Net Sales
Outlook
|
|
|
Fiscal 2016 Net
sales
|
|
(3.8%) -
(4.2%)
|
|
|
|
Currency
impact
|
|
1% - 1.4%
|
Impact of Venezuela
and Industrial
|
|
2.7%
|
|
|
|
Organic growth
outlook (Non-GAAP)
|
|
Flat
|
|
|
|
|
|
|
Adjusted EBITDA
Outlook
|
|
|
Fiscal 2016 Net
earnings
|
|
$176 -
$185
|
|
|
|
Income tax
provision
|
|
$49 - $50
|
Interest expense, net
(1)
|
approx.
|
$71 - $69
|
Depreciation and
amortization
|
approx.
|
$97 - $99
|
|
|
|
EBITDA
|
|
$393 -
$403
|
|
|
|
Spin costs
|
approx.
|
$12
|
2013 restructuring
and related costs, net (2)
|
approx.
|
$35
|
|
|
|
Fiscal 2016 Adjusted
EBITDA Outlook (Non-GAAP)
|
|
$440 -
$450
|
|
|
|
|
|
|
Adjusted EPS
Outlook
|
|
|
Fiscal 2016 GAAP
EPS
|
|
$2.95 -
$3.10
|
|
|
|
Spin costs
|
approx.
|
$0.20
|
2013 restructuring
and related costs, net
|
approx.
|
$0.64
|
Income
taxes
|
approx.
|
($0.34)
|
|
|
|
Fiscal 2016 Adjusted
EPS Outlook (Non-GAAP)
|
|
$3.45 -
$3.60
|
|
|
(1)
|
Includes $0.6 of
interest expense, net related to tax settlements.
|
|
|
(2)
|
Excludes
approximately $3 of accelerated depreciation related to
restructuring activities that is already added back to EBITDA
through Depreciation and amortization.
|
Note 3 - Net Sales
and Profit by Segment
|
|
|
|
Starting July 1,
2015, as a result of the Separation, operations for the Company are
reported via four segments - Wet Shave, Sun and Skin Care, Feminine
Care and All Other. The following tables present changes in
net sales and segment profit for the third quarter and first nine
months of fiscal 2016, as compared to the corresponding period in
fiscal 2015, and also provide a reconciliation of organic net sales
and organic segment profit to reported amounts.
|
|
|
|
Net Sales (In
millions - Unaudited)
|
|
Quarter Ended June
30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wet
Shave
|
|
Sun and Skin
Care
|
|
Feminine
Care
|
|
All
Other
|
|
Total
|
|
Net Sales - FY
'15
|
$
|
369.3
|
|
|
|
|
$
|
153.3
|
|
|
|
|
$
|
104.1
|
|
|
|
|
$
|
46.2
|
|
|
|
|
$
|
672.9
|
|
|
|
|
Organic
|
(6.2)
|
|
|
(1.7)%
|
|
|
(0.7)
|
|
|
(0.5)%
|
|
|
(6.6)
|
|
|
(6.3)%
|
|
|
(1.5)
|
|
|
(3.2)%
|
|
|
(15.0)
|
|
|
(2.2)%
|
|
|
Impact of
currency
|
1.5
|
|
|
0.4%
|
|
|
(1.3)
|
|
|
(0.8)%
|
|
|
(0.4)
|
|
|
(0.4)%
|
|
|
(0.2)
|
|
|
(0.4)%
|
|
|
(0.4)
|
|
|
(0.1)%
|
|
|
Impact of
Industrial
|
—
|
|
|
—%
|
|
|
—
|
|
|
—%
|
|
|
—
|
|
|
—%
|
|
|
(12.4)
|
|
|
(26.8)%
|
|
|
(12.4)
|
|
|
(1.8)%
|
|
|
Net Sales - FY
'16
|
$
|
364.6
|
|
|
(1.3)%
|
|
|
$
|
151.3
|
|
|
(1.3)%
|
|
|
$
|
97.1
|
|
|
(6.7)%
|
|
|
$
|
32.1
|
|
|
(30.4)%
|
|
|
$
|
645.1
|
|
|
(4.1)%
|
|
|
|
|
Net Sales (In
millions - Unaudited)
|
|
Nine Months Ended
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wet
Shave
|
|
Sun and Skin
Care
|
|
Feminine
Care
|
|
All
Other
|
|
Total
|
|
Net Sales - FY
'15
|
$
|
1,082.9
|
|
|
|
|
$
|
337.8
|
|
|
|
|
$
|
301.5
|
|
|
|
|
$
|
138.9
|
|
|
|
|
$
|
1,861.1
|
|
|
|
|
Organic
|
(0.9)
|
|
|
(0.1)%
|
|
|
6.6
|
|
|
2.0%
|
|
|
(18.1)
|
|
|
(6.0)%
|
|
|
(4.2)
|
|
|
(3.0)%
|
|
|
(16.6)
|
|
|
(0.9)%
|
|
|
Impact of
Venezuela
|
(24.0)
|
|
|
(2.2)%
|
|
|
—
|
|
|
—%
|
|
|
—
|
|
|
—%
|
|
|
—
|
|
|
—%
|
|
|
(24.0)
|
|
|
(1.3)%
|
|
|
Impact of
currency
|
(23.7)
|
|
|
(2.2)%
|
|
|
(7.1)
|
|
|
(2.1)%
|
|
|
(2.2)
|
|
|
(0.7)%
|
|
|
(1.8)
|
|
|
(1.3)%
|
|
|
(34.8)
|
|
|
(1.9)%
|
|
|
Impact of
Industrial
|
—
|
|
|
—%
|
|
|
—
|
|
|
—%
|
|
|
—
|
|
|
—%
|
|
|
(34.3)
|
|
|
(24.7)%
|
|
|
(34.3)
|
|
|
(1.8)%
|
|
|
Net Sales - FY
'16
|
$
|
1,034.3
|
|
|
(4.5)%
|
|
|
$
|
337.3
|
|
|
(0.1)%
|
|
|
$
|
281.2
|
|
|
(6.7)%
|
|
|
$
|
98.6
|
|
|
(29.0)%
|
|
|
$
|
1,751.4
|
|
|
(5.9)%
|
|
|
|
|
|
|
Segment Profit (In
millions - Unaudited)
|
|
Quarter Ended June
30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wet
Shave
|
|
Sun and Skin
Care
|
|
Feminine
Care
|
|
All
Other
|
|
Total
|
|
Segment Profit - FY
'15
|
$
|
56.4
|
|
|
|
|
$
|
25.8
|
|
|
|
|
$
|
7.9
|
|
|
|
|
$
|
5.2
|
|
|
|
|
$
|
95.3
|
|
|
|
|
Organic
|
(12.6)
|
|
|
(22.3)%
|
|
|
9.1
|
|
|
35.3%
|
|
|
(0.3)
|
|
|
(3.8)%
|
|
|
1.5
|
|
|
28.8%
|
|
|
(2.3)
|
|
|
(2.4)%
|
|
|
Impact of
currency
|
1.7
|
|
|
3.0%
|
|
|
(0.6)
|
|
|
(2.3)%
|
|
|
(0.2)
|
|
|
(2.5)%
|
|
|
(0.2)
|
|
|
(3.8)%
|
|
|
0.7
|
|
|
0.7%
|
|
|
Impact of
Industrial
|
—
|
|
|
—%
|
|
|
—
|
|
|
—%
|
|
|
—
|
|
|
—%
|
|
|
(0.4)
|
|
|
(7.7)%
|
|
|
(0.4)
|
|
|
(0.4)%
|
|
|
Segment Profit -
FY'16
|
$
|
45.5
|
|
|
(19.3)%
|
|
|
$
|
34.3
|
|
|
33.0%
|
|
|
$
|
7.4
|
|
|
(6.3)%
|
|
|
$
|
6.1
|
|
|
17.3%
|
|
|
$
|
93.3
|
|
|
(2.1)%
|
|
|
|
|
|
|
Segment Profit (In
millions - Unaudited)
|
|
Nine Months Ended
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wet
Shave
|
|
Sun and Skin
Care
|
|
Feminine
Care
|
|
All
Other
|
|
Total
|
|
Segment Profit - FY
'15
|
$
|
246.7
|
|
|
|
|
$
|
66.8
|
|
|
|
|
$
|
44.0
|
|
|
|
|
$
|
19.1
|
|
|
|
|
$
|
376.6
|
|
|
|
|
Organic
|
(38.8)
|
|
|
(15.7)%
|
|
|
11.2
|
|
|
16.8%
|
|
|
(6.8)
|
|
|
(15.5)%
|
|
|
5.0
|
|
|
26.2%
|
|
|
(29.4)
|
|
|
(7.8)%
|
|
|
Impact of
Venezuela
|
(9.4)
|
|
|
(3.8)%
|
|
|
—
|
|
|
—%
|
|
|
—
|
|
|
—%
|
|
|
—
|
|
|
—%
|
|
|
(9.4)
|
|
|
(2.5)%
|
|
|
Impact of
currency
|
(8.5)
|
|
|
(3.4)%
|
|
|
(2.8)
|
|
|
(4.2)%
|
|
|
(1.7)
|
|
|
(3.9)%
|
|
|
(1.2)
|
|
|
(6.3)%
|
|
|
(14.2)
|
|
|
(3.8)%
|
|
|
Impact of
Industrial
|
—
|
|
|
—%
|
|
|
—
|
|
|
—%
|
|
|
—
|
|
|
—%
|
|
|
(1.6)
|
|
|
(8.4)%
|
|
|
(1.6)
|
|
|
(0.4)%
|
|
|
Segment Profit -
FY'16
|
$
|
190.0
|
|
|
(22.9)%
|
|
|
$
|
75.2
|
|
|
12.6%
|
|
|
$
|
35.5
|
|
|
(19.4)%
|
|
|
$
|
21.3
|
|
|
11.5%
|
|
|
$
|
322.0
|
|
|
(14.5)%
|
|
Note 4 -
EBITDA
|
|
|
|
|
|
|
The Company reports
financial results on a GAAP and adjusted basis. The table
below is used to reconcile Net earnings (loss) to EBITDA, Adjusted
EBITDA and Normalized EBITDA, which are Non-GAAP measures, to
improve comparability of results between periods.
|
|
|
|
|
|
|
|
Quarter Ended June
30,
|
|
Nine Months Ended
June 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Net earnings
(loss)
|
$
|
36.7
|
|
|
$
|
(72.5)
|
|
|
$
|
126.5
|
|
|
$
|
(55.8)
|
|
|
Loss (earnings) from
discontinued operations, net of tax
|
—
|
|
|
4.8
|
|
|
—
|
|
|
(46.6)
|
|
|
Income tax provision
(benefit)
|
(2.6)
|
|
|
(44.7)
|
|
|
29.6
|
|
|
(35.7)
|
|
|
Interest expense, net
(1)
|
21.3
|
|
|
87.1
|
|
|
53.8
|
|
|
143.0
|
|
|
Depreciation and
amortization
|
25.6
|
|
|
20.6
|
|
|
71.4
|
|
|
68.8
|
|
|
EBITDA
(2)
|
$
|
81.0
|
|
|
$
|
(4.7)
|
|
|
$
|
281.3
|
|
|
$
|
73.7
|
|
|
|
|
|
|
|
|
|
|
|
Venezuela
deconsolidation charge
|
—
|
|
|
—
|
|
|
—
|
|
|
79.3
|
|
|
Spin restructuring
charges
|
—
|
|
|
4.3
|
|
|
—
|
|
|
28.3
|
|
|
Spin costs
|
2.8
|
|
|
55.7
|
|
|
12.0
|
|
|
111.7
|
|
|
2013 restructuring
and related costs (3)
|
4.8
|
|
|
4.0
|
|
|
27.2
|
|
|
16.8
|
|
|
Industrial sale
charges
|
—
|
|
|
21.9
|
|
|
0.2
|
|
|
21.9
|
|
|
Adjusted EBITDA
(2)
|
$
|
88.6
|
|
|
$
|
81.2
|
|
|
$
|
320.7
|
|
|
$
|
331.7
|
|
|
|
|
|
|
|
|
|
|
|
SG&A
(4)
|
—
|
|
|
18.6
|
|
|
—
|
|
|
47.5
|
|
|
|
|
|
|
|
|
|
|
|
Normalized
EBITDA
|
$
|
88.6
|
|
|
$
|
99.8
|
|
|
$
|
320.7
|
|
|
$
|
379.2
|
|
|
|
(1)
|
Interest expense, net
includes Interest expense associated with debt as well as
components of interest reported in Other expense (income), net on
the Condensed Consolidated Statement of Earnings. Interest
expense, net for the third quarter and first nine months of fiscal
2016 includes $3.2 and $0.6, respectively of interest expense
recorded in relation to settlements with tax authorities.
Interest expense, net for the third quarter and first nine months
of fiscal 2015 includes $59.6 of Cost of early debt
retirements.
|
(2)
|
Historical Adjusted
EBITDA results on a continuing operations basis include costs
associated with supporting the Household Product business that are
not reported in discontinued operations which affect corporate
SG&A. As such, both EBITDA and Adjusted EBITDA this
quarter and this fiscal year are not comparable to the prior year,
and are not comparable year-over-year for the first three
quarters of fiscal 2016.
|
(3)
|
Excludes $1.0 and
$0.9 of accelerated depreciation for the third fiscal quarters of
2016 and 2015, respectively, and $2.2 and $3.9 of accelerated
depreciation for the first nine months of fiscal 2016 and 2015,
respectively, which are included within Depreciation and
amortization.
|
(4)
|
Corporate
SG&A has been adjusted to reflect an estimated full year
run-rate of $74 in fiscal 2015.
|
Note 5 - Adjusted
Working Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Working
Capital metrics for the third and second quarters of fiscal 2016
and the fourth quarter of fiscal 2015 are presented
below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3
2016
|
|
Days
(1)
|
|
Q2
2016
|
|
Days
(1)
|
|
Q4
2015
|
|
Days
(1)
|
|
Receivables, as
reported
|
$
|
280.0
|
|
|
|
|
$
|
329.6
|
|
|
|
|
$
|
423.0
|
|
|
|
|
Less: Household
Products receivables (2)
|
(8.5)
|
|
|
|
|
(52.2)
|
|
|
|
|
(137.7)
|
|
|
|
|
Less: Trade allowance
in accrued liabilities (3)
|
(31.9)
|
|
|
|
|
(35.2)
|
|
|
|
|
(38.0)
|
|
|
|
|
Receivables,
adjusted
|
239.6
|
|
|
37.8
|
|
|
242.2
|
|
|
37.7
|
|
|
247.3
|
|
|
37.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventories, as
reported
|
351.2
|
|
|
|
|
424.4
|
|
|
|
|
565.0
|
|
|
|
|
Less: Household
Products inventories (2)
|
—
|
|
|
|
|
(68.5)
|
|
|
|
|
(202.7)
|
|
|
|
|
Inventories,
adjusted
|
351.2
|
|
|
107.5
|
|
|
355.9
|
|
|
107.7
|
|
|
362.3
|
|
|
107.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable, as
reported
|
221.6
|
|
|
|
|
260.3
|
|
|
|
|
325.4
|
|
|
|
|
Less: Household
Products accounts payable (2)
|
—
|
|
|
|
|
(47.4)
|
|
|
|
|
(139.4)
|
|
|
|
|
Accounts payable,
adjusted
|
221.6
|
|
|
67.8
|
|
|
212.9
|
|
|
64.4
|
|
|
186.0
|
|
|
54.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average adjusted
working capital (4)
|
$
|
369.2
|
|
|
|
|
$
|
385.2
|
|
|
|
|
$
|
423.6
|
|
|
|
|
% of net sales
(5)
|
16.0%
|
|
|
|
|
16.5%
|
|
|
|
|
17.5%
|
|
|
|
|
|
(1)
|
Days sales
outstanding is calculated using net sales for the trailing
four-quarter period. Days in inventory and days payable
outstanding are calculated using cost of products sold for the
trailing four-quarter period. Both net sales and cost of
products sold for the trailing four-quarter period exclude amounts
related to the Household Products business.
|
|
|
(2)
|
Amounts are
calculated using an average of the four-quarter end balances for
each working capital component. As such, the average for each
period includes amounts related to the Household Products business,
which are being excluded from the calculation.
|
|
|
(3)
|
Trade allowances are
recorded as a reduction of net sales per GAAP and reported in
accrued expenses on the Condensed Consolidated Balance
Sheets.
|
|
|
(4)
|
Adjusted working
capital is defined as receivables (less trade allowance in accrued
liabilities), plus inventories, less accounts payable.
Average adjusted working capital is calculated using an average of
the four-quarter end balances for each working capital component as
of June 30, 2016, March 31, 2016 and September 30, 2015,
respectively.
|
|
|
(5)
|
Average
adjusted working capital divided by trailing four-quarter net
sales.
|
Note 6 - Fiscal
2015 Segment Net Sales and Profitability
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment net sales and
profitability for each quarter of fiscal 2015, respectively, are
presented below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
2015
|
|
Q2
2015
|
|
Q3
2015
|
|
Q4
2015
|
|
Fiscal
Year
2015
|
|
Net
Sales
|
|
|
|
|
|
|
|
|
|
|
Wet Shave
|
$
|
341.4
|
|
|
$
|
372.2
|
|
|
$
|
369.3
|
|
|
$
|
358.4
|
|
|
$
|
1,441.3
|
|
|
Sun and Skin
Care
|
54.3
|
|
|
130.2
|
|
|
153.3
|
|
|
65.8
|
|
|
403.6
|
|
|
Feminine
Care
|
95.8
|
|
|
101.6
|
|
|
104.1
|
|
|
96.7
|
|
|
398.2
|
|
|
All Other
|
45.6
|
|
|
47.1
|
|
|
46.2
|
|
|
39.2
|
|
|
178.1
|
|
|
Total net
sales
|
$
|
537.1
|
|
|
$
|
651.1
|
|
|
$
|
672.9
|
|
|
$
|
560.1
|
|
|
$
|
2,421.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
|
|
|
|
|
|
|
|
|
Wet Shave
|
$
|
90.5
|
|
|
$
|
99.8
|
|
|
$
|
56.4
|
|
|
$
|
62.0
|
|
|
$
|
308.7
|
|
|
Sun and Skin
Care
|
3.7
|
|
|
37.3
|
|
|
25.8
|
|
|
4.7
|
|
|
71.5
|
|
|
Feminine
Care
|
15.2
|
|
|
20.9
|
|
|
7.9
|
|
|
4.7
|
|
|
48.7
|
|
|
All Other
|
6.8
|
|
|
7.1
|
|
|
5.2
|
|
|
5.5
|
|
|
24.6
|
|
|
Total segment
profit
|
116.2
|
|
|
165.1
|
|
|
95.3
|
|
|
76.9
|
|
|
453.5
|
|
|
General corporate and
other expenses
|
(31.4)
|
|
|
(38.6)
|
|
|
(36.6)
|
|
|
(15.4)
|
|
|
(122.0)
|
|
|
Impairment
charge
|
—
|
|
|
—
|
|
|
—
|
|
|
(318.2)
|
|
|
(318.2)
|
|
|
Venezuela
deconsolidation charge
|
—
|
|
|
(79.3)
|
|
|
—
|
|
|
—
|
|
|
(79.3)
|
|
|
Spin costs
(1)
|
(23.8)
|
|
|
(32.2)
|
|
|
(55.7)
|
|
|
(30.3)
|
|
|
(142.0)
|
|
|
Spin restructuring
charges
|
(1.2)
|
|
|
(22.8)
|
|
|
(4.3)
|
|
|
—
|
|
|
(28.3)
|
|
|
2013 restructuring
and related costs (2)
|
(9.2)
|
|
|
(6.6)
|
|
|
(4.9)
|
|
|
(6.3)
|
|
|
(27.0)
|
|
|
Industrial sale
charges
|
—
|
|
|
—
|
|
|
(21.9)
|
|
|
(10.8)
|
|
|
(32.7)
|
|
|
Amortization of
intangibles
|
(4.1)
|
|
|
(3.6)
|
|
|
(3.8)
|
|
|
(3.6)
|
|
|
(15.1)
|
|
|
Cost of early debt
retirements
|
—
|
|
|
—
|
|
|
(59.6)
|
|
|
—
|
|
|
(59.6)
|
|
|
Interest and other
expense, net
|
(27.4)
|
|
|
(26.8)
|
|
|
(20.9)
|
|
|
(12.9)
|
|
|
(88.0)
|
|
|
Total earnings
(loss) from continuing operations before income
taxes
|
$
|
19.1
|
|
|
$
|
(44.8)
|
|
|
$
|
(112.4)
|
|
|
$
|
(320.6)
|
|
|
$
|
(458.7)
|
|
|
|
(1)
|
Includes pre-tax
costs of $23.8, $31.5, $52.4, $30.1 and $137.8, respectively, for
the first, second, third and fourth quarter of fiscal 2015 and
fiscal year 2015, which were included in SG&A, and pre-tax
costs of $0.7, $3.3, $0.2 and $4.2, respectively, for the second,
third and fourth quarters of fiscal 2015 and fiscal year 2015,
included in Cost of products sold.
|
|
|
(2)
|
Includes pre-tax
costs of $0.3 for the third quarter of fiscal 2015 and fiscal year
2015 associated with certain information technology and related
activities, which were included in SG&A.
|
Note 7 - Venezuela
Deconsolidation
|
|
|
|
|
|
|
|
|
|
On March 31, 2015,
the Company deconsolidated its Venezuelan subsidiaries.
Included in consolidated results of operations, and reflected
below, are the historical results of the Company's Venezuela
operations through the second quarter of fiscal 2015 (reflected at
the official exchange rate of 6.30 bolivars per U.S.
dollar).
|
|
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
|
|
Wet Shave - Net
Sales
|
Fiscal
2015
|
$9.6
|
$14.4
|
—
|
—
|
$24.0
|
|
|
|
|
|
|
|
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
|
|
Wet Shave - Segment
Profit
|
Fiscal
2015
|
$3.3
|
$6.0
|
—
|
—
|
$9.3
|
Note 8 - Sale of
Industrial Business
|
|
|
|
|
|
|
|
|
|
The sale of the
Industrial business was completed in September 2015. The
historical results of the Industrial business are included in
consolidated results of operations through September 30,
2015. Reflected below are the net sales for the Industrial
business. The impact on All Other segment profit is not
material.
|
|
|
|
|
|
|
|
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
|
|
Industrial - Net
Sales
|
Fiscal
2015
|
$10.7
|
$11.2
|
$12.4
|
$7.6
|
$41.9
|
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SOURCE Edgewell Personal Care Company