ST. LOUIS, May 2, 2017 /PRNewswire/ -- Edgewell
Personal Care Company (NYSE: EPC) today announced
results for its second fiscal quarter, which ended March 31, 2017.
Executive Summary
- Net sales were $611 million in
the second quarter of fiscal 2017, flat when compared to the prior
year period on a reported and organic basis. (Organic basis
excludes sales growth from the Bulldog acquisition and the negative
impact from currency).
- GAAP Diluted Earnings Per Share ("EPS") and Adjusted EPS were
$1.14 and $1.21, respectively, for the second quarter,
compared to $1.10 and $1.17, respectively, a year ago.
- The Company is maintaining its fiscal 2017 financial outlook
for Adjusted EPS and revising its outlook for organic net
sales.
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.
"We delivered on our top and bottom line financial outlook for
the first half of the fiscal year, despite weakening category
dynamics in the U.S.," said David
Hatfield, Edgewell's Chief Executive Officer, President and
Chairman of the Board. "Though we are pleased with our manual
shave share performance in the quarter and growth in our Sun and
Skin Care segment, the category softness that we are seeing in the
U.S., particularly in Wet Shave, creates a challenging environment
going forward." Mr. Hatfield continued, "Given these
headwinds, we continue to increase our focus and investment in
growth opportunities, including international expansion, Sun and
Skin Care and e-Commerce. This past quarter, we launched our
first e-Commerce initiative in China and in the coming months we will launch
our first direct to consumer initiative in the U.S."
Fiscal 2Q 2017 Operating Results (Unaudited)
Net sales were $611 million
in the quarter, flat when compared to the prior year quarter.
Excluding a $2.9 million benefit from
the Bulldog acquisition and a $3.7
million negative impact from currency, organic net sales
increased 0.1%, with growth in global Sun and Skin Care mostly
offset by declines in Men's Systems and Feminine Care.
Gross margin decreased 20 basis points to 50.7%, as lower
promotional spend, favorable pricing and volume growth in Sun and
Skin Care were more than offset by higher product costs related to
the transition of Feminine Care manufacturing from Montreal to Dover,
DE.
Advertising and sales promotion expense ("A&P") was
$82.5 million, or 13.5% of net sales,
a decrease from prior year A&P of $85.0
million, or 13.9% of net sales. The prior year
included higher spending in support of new product innovation in
men's Hydro® in North America.
Selling, general and administrative expense ("SG&A")
was $103.9 million, or 17.0% of net
sales, compared to $99.7 million, or
16.3% of net sales, in the prior year. Excluding prior year
spin costs, SG&A increased 6.0% over the prior year primarily
related to increased expenses in support of our Zero Based Spending
projects, as well as investments in growth initiatives such as
China and e-Commerce.
The Company recorded pre-tax restructuring expense of
$5.6 million compared to $5.1 million in the prior year quarter.
Other income, net was $6.6
million during the quarter compared to $4.6 million in the prior year, primarily
reflecting a benefit from foreign currency exchange contract gains
in the quarter and revaluation gains on nonfunctional currency
balance sheet exposures.
Earnings before income taxes were $89.5 million during the quarter compared to
$91.3 million in the second quarter
of fiscal 2016. Adjusted operating income was $105.8 million in the quarter compared to
$111.5 million in the prior year
period. The decline in adjusted operating income was
primarily driven by higher SG&A and lower gross margin,
slightly offset by lower A&P spending.
The effective tax rate for the first six months of fiscal
2017 was 26.2% as compared to 26.4% in the prior year period.
The adjusted effective tax rate for the first six months of fiscal
2017, excluding the tax associated with restructuring, was 26.6%, a
150 basis point decrease from the prior year adjusted rate of
28.1%, primarily due to a more favorable mix of earnings in lower
tax rate jurisdictions.
Net earnings in the quarter were $65.7 million, compared to $66.1 million in the second quarter of fiscal
2016. Adjusted net earnings in the quarter were $69.6 million, compared to $70.5 million in the second quarter of fiscal
2016.
GAAP Diluted EPS was $1.14
in the quarter as compared to $1.10
in the prior year quarter. Adjusted EPS for the quarter was
$1.21, compared to $1.17 in the prior year quarter.
Net cash used by operating activities was $0.4 million for the first six months of fiscal
2017 as compared to $72.6 million
during the same period during the prior year. The improvement
reflects the discretionary funding during the second quarter of
fiscal 2016 of certain international pension plans of $100.5 million, partially offset by higher
current year deferred compensation payments, as well as increased
net outflows from working capital driven by the timing of receipts
and payments, including a tax refund received in the prior
year. The Company expects to have positive operating cash
flow for the full year. In the first six months of fiscal
2017, the Company completed share repurchases of
approximately 0.8 million shares for $58.5
million.
Fiscal 2Q 2017 Operating Segment Results (Unaudited)
Following is a summary of second quarter results by segment. All
comparisons are with the second quarter of fiscal year 2016.
Wet Shave (Men's Systems, Women's Systems, Disposables,
Shave Preps)
Wet Shave net sales decreased $10.8
million, or 3.1%. Excluding the impact of currency
movements, organic net sales decreased $7.7
million, or 2.2%. The decrease in organic net sales was
largely driven by volume declines in North America Men's Systems,
partially offset by lower promotional spend and favorable
pricing. North America Men's Systems faced difficult
comparisons to last year's strong Hydro® performance, which
included incremental distribution gains. Women's Systems and
Disposables both increased sales, supported by the new Hydro Silk®
and Quattro You® product launches, partially offset by the impact
of category softness in the U.S. Wet Shave segment profit
decreased $4.5 million, or 5.8%,
primarily due to lower volumes in Men's Systems and unfavorable
transactional currency impacts, partially offset by pricing
increases and lower promotional and A&P spend.
Sun and Skin Care (Sun
Care, Wipes, Gloves, Bulldog)
Sun and Skin Care net sales increased $18.1 million, or 13.7%. Excluding the
Bulldog acquisition and the impact of currency movements, organic
net sales increased $16.2 million, or
12.2%, driven by double digit growth in both North America and International, partially
offset by volume declines related to the Company's decision to exit
the private label Sun Care
business. Growth in North America was primarily driven by the
timing of shipments compared to the prior year, and growth in
International was largely driven by new distribution. Sun and
Skin Care segment profit increased $11.7
million, or 30.4%, driven primarily by higher volumes and
favorable costs generated through restructuring cost improvement
projects.
Feminine Care (Tampons, Pads, Liners)
Feminine Care net sales decreased $8.4
million, or 9.2%, largely driven by volume declines related
to Sport® branded pad and liner distribution losses, increased
competitive pressure, and category softness. This resulted in
declines across Tampons, Pads and Liners. These declines were
partially offset by lower promotional spend in the quarter, due to
the timing of product launches. Feminine Care segment profit
decreased $8.9 million, or 84.8%,
driven by increased product costs related to the transition of
manufacturing from Montreal to
Dover, DE, lower volumes, and
increased transactional currency impacts, partially offset by lower
promotional spend.
All Other (Infant Care,
all other brands)
All Other net sales increased $0.9
million, or 2.7%. Excluding the impact of currency
movements, organic net sales increased $0.7
million, or 2.1%, driven by growth in Diaper Genie® and Pet
Care products. All Other segment profit decreased
$0.3 million, or 3.8%.
Full Fiscal Year 2017 Financial Outlook
For fiscal 2017, the Company is revising its organic net sales
outlook to be approximately flat (previously up low single digits)
compared to the prior year, reflecting a lower sales outlook in
Feminine Care and softness in the U.S. Wet Shave Category.
Reported net sales are now expected to be down approximately
1%, including an approximate 60 basis point increase from the
acquisition of Bulldog, and negative foreign currency translation
effects of approximately 120 basis points (based on spot exchange
rates as of April 17, 2017).
The Company's outlook for GAAP EPS is now in the range of
$3.50 - $3.70, reflecting increased
restructuring charges. The outlook for Adjusted EPS remains
in the range of $3.80 - $4.00, as the
estimated impact of lower sales is mitigated by the improved
currency outlook, as well as a lower tax rate. Adjusted
operating income margin is anticipated to expand by 50 basis
points. The effective tax rate for the fiscal year is now
estimated to be in the range of 26% to 27%.
The Company anticipates that fiscal 2017 free cash flow will be
approximately 100% of GAAP net earnings.
The full-year estimate for restructuring related costs is
$25 to $28 million. Full year
incremental restructuring savings are expected to be approximately
$20 to $25 million in fiscal 2017,
with an additional $20 to $25 million
in fiscal 2018 and 2019 combined.
The Company's Zero-Based Spend initiative is anticipated to
drive $10 to $15 million in savings
(net of implementation expense) in fiscal 2017, primarily in the
second half of the year, with an additional $25 to $30 million of savings in fiscal 2018.
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
2017 second quarter earnings and the outlook for fiscal 2017.
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®, Hawaiian Tropic® and Bulldog® sun and
skin 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, the U.K. 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 items such as
spin costs, restructuring charges, the sale of the industrial
business and amortization of intangibles. Reconciliations of
Non-GAAP measures, including reconciliations of measures related to
the Company's fiscal 2017 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. 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 on an organic basis to
better measure the comparability of results between periods.
Organic net sales exclude the impact of changes in foreign currency
and acquisitions. This information is provided because these
fluctuations can distort the underlying change in net sales either
positively or negatively.
- Adjusted EBITDA is defined as earnings before income taxes,
interest expense, net, depreciation and amortization and excludes
items such as spin costs, restructuring charges and the sale of the
industrial business.
- Adjusted operating income is defined as earnings before income
taxes, interest expense associated with debt, other income, net,
and excludes items such as spin costs, restructuring charges and
the sale of the industrial business.
- Adjusted net earnings and adjusted earnings per share are
defined as net earnings and diluted earnings per share excluding
items such as spin costs, restructuring charges, the sale of the
industrial business and the related tax effects of these
items.
- Adjusted effective tax rate is defined as the effective tax
rate excluding items such as spin costs, restructuring charges, the
sale of the industrial business and the related tax effects of
these items 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.
- Free cash flow is defined as net cash from operating activities
less net 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 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 and currency
fluctuations;
- Competition in the Company's industries may hinder its ability
to execute its business strategy, achieve profitability, or
maintain relationships with existing customers;
- Loss of reputation of the Company's leading brands or failure
of its marketing plans;
- Loss of any of the Company's principal customers and emergence
of new sales channels such as e-Commerce;
- A failure of a key information technology system or a breach of
the Company's information security;
- The Company faces risks arising from the restructuring of its
operations and its ongoing efforts to achieve cost savings;
- Impairment of the Company's goodwill and other intangible
assets;
- 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's business is subject to increasing regulation that
may expose it to significant liabilities;
- The resolution of the Company's tax contingencies may result in
additional tax liabilities;
- Changes in production costs, including raw material
prices;
- The Company's manufacturing facilities, supply channels or
other business operations may be subject to disruption from events
beyond its control;
- The Company's business is subject to seasonal volatility;
- The Company has a substantial level of indebtedness and is
subject to various covenants relating to such indebtedness;
- The Company's access to capital markets and borrowing capacity
could be limited;
- If the Company fails to adequately protect its intellectual
property rights, competitors may manufacture and market similar
products;
- The Company's business involves the potential for product
liability and other claims against it, which could result in
product recalls or withdrawals;
- 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 financial results could be adversely impacted by
the United Kingdom's departure
from the European Union; and
- The Company faces risks related to the separation of its
Household Products business in July
2015.
In addition, other risks and uncertainties not presently known
to the Company or that it presently considers immaterial could
significantly 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, 2016.
EDGEWELL PERSONAL
CARE COMPANY
|
CONDENSED
CONSOLIDATED STATEMENTS OF EARNINGS
|
(unaudited, in
millions, except per share data)
|
|
|
Quarter Ended
March 31,
|
|
Six Months Ended
March 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
611.0
|
|
|
$
|
611.2
|
|
|
$
|
1,096.0
|
|
|
$
|
1,106.3
|
|
Cost of products
sold
|
301.4
|
|
|
300.1
|
|
|
558.4
|
|
|
567.7
|
|
Gross
profit
|
309.6
|
|
|
311.1
|
|
|
537.6
|
|
|
538.6
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expense
|
103.9
|
|
|
99.7
|
|
|
197.7
|
|
|
200.1
|
|
Advertising and sales
promotion expense
|
82.5
|
|
|
85.0
|
|
|
133.1
|
|
|
131.6
|
|
Research and
development expense
|
17.5
|
|
|
16.7
|
|
|
33.8
|
|
|
32.7
|
|
Restructuring
charges
|
5.5
|
|
|
5.0
|
|
|
12.4
|
|
|
23.5
|
|
Industrial sale
charges
|
—
|
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
Interest expense
associated with debt
|
17.3
|
|
|
17.8
|
|
|
34.7
|
|
|
35.5
|
|
Other income,
net
|
(6.6)
|
|
|
(4.6)
|
|
|
(8.5)
|
|
|
(7.0)
|
|
Earnings before
income taxes
|
89.5
|
|
|
91.3
|
|
|
134.4
|
|
|
122.0
|
|
Income tax
provision
|
23.8
|
|
|
25.2
|
|
|
35.2
|
|
|
32.2
|
|
Net
earnings
|
$
|
65.7
|
|
|
$
|
66.1
|
|
|
$
|
99.2
|
|
|
$
|
89.8
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic net earnings per share
|
$
|
1.14
|
|
|
$
|
1.11
|
|
|
$
|
1.72
|
|
|
$
|
1.51
|
|
Diluted net earnings per diluted share
|
1.14
|
|
|
1.10
|
|
|
1.72
|
|
|
1.49
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
57.4
|
|
|
59.4
|
|
|
57.5
|
|
|
59.6
|
|
Diluted
|
57.7
|
|
|
59.9
|
|
|
57.8
|
|
|
60.1
|
|
See Accompanying Notes.
EDGEWELL PERSONAL
CARE COMPANY
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(unaudited, in
millions)
|
|
Assets
|
March 31,
2017
|
|
September 30,
2016
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
402.9
|
|
|
$
|
738.9
|
|
Trade receivables,
net
|
311.0
|
|
|
260.7
|
|
Inventories
|
366.4
|
|
|
309.2
|
|
Other current
assets
|
142.8
|
|
|
143.2
|
|
Total current
assets
|
1,223.1
|
|
|
1,452.0
|
|
Property, plant and
equipment, net
|
462.0
|
|
|
486.1
|
|
Goodwill
|
1,426.6
|
|
|
1,420.3
|
|
Other intangible
assets, net
|
1,391.2
|
|
|
1,385.1
|
|
Other
assets
|
27.7
|
|
|
28.0
|
|
Total
assets
|
$
|
4,530.6
|
|
|
$
|
4,771.5
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
Current
liabilities
|
|
|
|
Current maturities of
long-term debt
|
$
|
—
|
|
|
$
|
281.8
|
|
Notes
payable
|
19.7
|
|
|
18.5
|
|
Accounts
payable
|
231.6
|
|
|
196.5
|
|
Other current
liabilities
|
306.1
|
|
|
371.4
|
|
Total current
liabilities
|
557.4
|
|
|
868.2
|
|
Long-term
debt
|
1,609.8
|
|
|
1,544.2
|
|
Deferred income tax
liabilities
|
251.7
|
|
|
255.3
|
|
Other
liabilities
|
262.2
|
|
|
274.8
|
|
Total
liabilities
|
2,681.1
|
|
|
2,942.5
|
|
Shareholders'
equity
|
|
|
|
Common
shares
|
0.7
|
|
|
0.7
|
|
Additional paid-in
capital
|
1,620.2
|
|
|
1,642.5
|
|
Retained
earnings
|
1,046.4
|
|
|
946.0
|
|
Treasury
shares
|
(600.9)
|
|
|
(563.0)
|
|
Accumulated other
comprehensive loss
|
(216.9)
|
|
|
(197.2)
|
|
Total shareholders'
equity
|
1,849.5
|
|
|
1,829.0
|
|
Total liabilities and
shareholders' equity
|
$
|
4,530.6
|
|
|
$
|
4,771.5
|
|
See Accompanying Notes.
EDGEWELL PERSONAL
CARE COMPANY
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(unaudited, in
millions)
|
|
|
Six Months
Ended
March
31,
|
|
2017
|
|
2016
|
Cash Flow from
Operating Activities
|
|
|
|
Net
earnings
|
$
|
99.2
|
|
|
$
|
89.8
|
|
Non-cash
restructuring costs
|
2.8
|
|
|
1.2
|
|
Depreciation and
amortization
|
46.9
|
|
|
44.6
|
|
Deferred compensation
payments
|
(25.7)
|
|
|
(7.0)
|
|
Share-based
compensation expense
|
11.4
|
|
|
13.1
|
|
International pension
funding
|
—
|
|
|
(100.5)
|
|
Other, net
|
(11.1)
|
|
|
(10.2)
|
|
Changes in current
assets and liabilities used in operations
|
(123.9)
|
|
|
(103.6)
|
|
Net cash used by
operating activities
|
(0.4)
|
|
|
(72.6)
|
|
|
|
|
|
Cash Flow from
Investing Activities
|
|
|
|
Capital
expenditures
|
(30.4)
|
|
|
(34.5)
|
|
Acquisitions, net of
cash acquired
|
(34.0)
|
|
|
—
|
|
Proceeds from sale of
assets
|
5.9
|
|
|
—
|
|
Net cash used by
investing activities
|
(58.5)
|
|
|
(34.5)
|
|
|
|
|
|
Cash Flow from
Financing Activities
|
|
|
|
Cash proceeds from
debt with original maturities greater than 90 days
|
181.0
|
|
|
395.3
|
|
Cash payments on debt
with original maturities greater than 90 days
|
(393.0)
|
|
|
(261.0)
|
|
Net increase
(decrease) in debt with original maturities of 90 days or
less
|
1.2
|
|
|
(5.6)
|
|
Common shares
purchased
|
(58.5)
|
|
|
(78.9)
|
|
Other, net
|
2.0
|
|
|
—
|
|
Net cash (used by)
from financing activities
|
(267.3)
|
|
|
49.8
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
(9.8)
|
|
|
5.7
|
|
|
|
|
|
Net decrease in cash
and cash equivalents
|
(336.0)
|
|
|
(51.6)
|
|
Cash and cash
equivalents, beginning of period
|
738.9
|
|
|
712.1
|
|
Cash and cash
equivalents, end of period
|
$
|
402.9
|
|
|
$
|
660.5
|
|
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 restructuring
initiatives, the sale of the industrial business and the
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 October 31, 2016, the Company
completed the acquisition of Bulldog Skincare Holdings Limited
("Bulldog"), a men's grooming and skincare products company based
in the United Kingdom,
for £27.8, or approximately $34.0, net of cash
acquired. The acquisition creates opportunities to expand
Edgewell's personal care portfolio into a growing global category
where it can leverage its international geographic footprint.
The acquisition was financed through available foreign cash.
The results of Bulldog for the post-acquisition period are included
within the Company's results for the second quarter and first six
months of fiscal 2017, and all assets are included in the Company's
Sun and Skin Care segment.
Segment net sales and profitability are presented below:
|
Quarter Ended
March 31,
|
|
Six Months Ended
March 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net
Sales
|
|
|
|
|
|
|
|
Wet Shave
|
$
|
342.6
|
|
|
$
|
353.4
|
|
|
$
|
648.8
|
|
|
$
|
669.7
|
|
Sun and Skin
Care
|
150.6
|
|
|
132.5
|
|
|
208.2
|
|
|
186.0
|
|
Feminine
Care
|
83.2
|
|
|
91.6
|
|
|
172.3
|
|
|
184.1
|
|
All Other
|
34.6
|
|
|
33.7
|
|
|
66.7
|
|
|
66.5
|
|
Total net
sales
|
$
|
611.0
|
|
|
$
|
611.2
|
|
|
$
|
1,096.0
|
|
|
$
|
1,106.3
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
|
|
|
|
|
|
Wet Shave
|
$
|
73.2
|
|
|
$
|
77.7
|
|
|
$
|
145.2
|
|
|
$
|
144.5
|
|
Sun and Skin
Care
|
50.9
|
|
|
39.2
|
|
|
51.7
|
|
|
40.9
|
|
Feminine
Care
|
1.6
|
|
|
10.5
|
|
|
9.9
|
|
|
28.1
|
|
All Other
|
7.7
|
|
|
8.0
|
|
|
14.6
|
|
|
15.2
|
|
Total segment
profit
|
133.4
|
|
|
135.4
|
|
|
221.4
|
|
|
228.7
|
|
General corporate and
other expenses
|
(23.5)
|
|
|
(20.3)
|
|
|
(39.9)
|
|
|
(38.0)
|
|
Spin costs
(1)
|
—
|
|
|
(1.7)
|
|
|
—
|
|
|
(9.2)
|
|
Restructuring and
related costs (2)
|
(5.6)
|
|
|
(5.1)
|
|
|
(12.8)
|
|
|
(23.6)
|
|
Industrial sale
charges
|
—
|
|
|
(0.2)
|
|
|
—
|
|
|
(0.2)
|
|
Amortization of
intangibles
|
(4.1)
|
|
|
(3.6)
|
|
|
(8.1)
|
|
|
(7.2)
|
|
Interest and other
expense, net
|
(10.7)
|
|
|
(13.2)
|
|
|
(26.2)
|
|
|
(28.5)
|
|
Total earnings
before income taxes
|
$
|
89.5
|
|
|
$
|
91.3
|
|
|
$
|
134.4
|
|
|
$
|
122.0
|
|
|
|
(1)
|
Includes Selling,
general and administrative expense ("SG&A") of $1.7 and $9.0
for the second quarter and first six months of fiscal 2016,
respectively, and Cost of products sold of $0.2 for the first six
months of fiscal 2016 related to the separation of the Household
Products business in July 2015.
|
(2)
|
Includes Cost of
products sold of $0.1 and $0.4 for the second quarter and first six
months of fiscal 2017, respectively, and $0.1 for the second
quarter and first six months of fiscal 2016 associated with
obsolescence charges related to the exit of certain non-core
product lines as a part of restructuring
|
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
awards.
The following table provides a reconciliation of Net earnings
and Net earnings per diluted share ("EPS") to Adjusted net earnings
and Adjusted EPS, which are Non-GAAP measures.
|
Quarter Ended
March 31,
|
|
Net
Earnings
|
|
Diluted
EPS
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net Earnings and
Diluted EPS - GAAP (Unaudited)
|
$
|
65.7
|
|
|
$
|
66.1
|
|
|
$
|
1.14
|
|
|
$
|
1.10
|
|
Spin costs
(1)
|
—
|
|
|
1.7
|
|
|
—
|
|
|
0.03
|
|
Restructuring and
related charges (2)
|
5.6
|
|
|
5.1
|
|
|
0.10
|
|
|
0.08
|
|
Industrial sale
charges
|
—
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
Income
taxes
|
(1.7)
|
|
|
(2.6)
|
|
|
(0.03)
|
|
|
(0.04)
|
|
Adjusted Net
Earnings and Adjusted Diluted EPS - Non-GAAP
|
$
|
69.6
|
|
|
$
|
70.5
|
|
|
$
|
1.21
|
|
|
$
|
1.17
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares - Diluted
|
|
|
|
|
57.7
|
|
59.9
|
|
|
(1)
|
Includes SG&A of
$1.7 for the second quarter of fiscal 2016 related to the
separation of the Household Products business in July
2015.
|
(2)
|
Includes Cost of
products sold of $0.1 for the second quarters of fiscal 2017 and
2016 associated with obsolescence charges related to the exit of
certain non-core product lines as part of the
restructuring.
|
|
Six Months Ended
March 31,
|
|
Net
Earnings
|
|
Diluted
EPS
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net Earnings and
Diluted EPS - GAAP (Unaudited)
|
$
|
99.2
|
|
|
$
|
89.8
|
|
|
$
|
1.72
|
|
|
$
|
1.49
|
|
Spin costs
(1)
|
—
|
|
|
9.2
|
|
|
—
|
|
|
0.15
|
|
Restructuring and
related charges (2)
|
12.8
|
|
|
23.6
|
|
|
0.22
|
|
|
0.39
|
|
Industrial sale
charges
|
—
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
Income
taxes
|
(4.0)
|
|
|
(11.3)
|
|
|
(0.07)
|
|
|
(0.18)
|
|
Adjusted Net
Earnings and Adjusted Diluted EPS - Non-GAAP
|
$
|
108.0
|
|
|
$
|
111.5
|
|
|
$
|
1.87
|
|
|
$
|
1.85
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares - Diluted
|
|
|
|
|
57.8
|
|
60.1
|
|
|
(1)
|
Includes SG&A of
$9.0 and Cost of products sold of $0.2 for the first six months of
fiscal 2016 related to the separation of the Household Products
business in July 2015.
|
(2)
|
Includes Cost of
products sold of $0.4 and $0.1 for the first six months of fiscal
2017 and 2016, respectively, associated with obsolescence charges
related to the exit of certain non-core product lines as part of
the restructuring.
|
The following tables provide a GAAP to Non-GAAP reconciliation
of certain line items from the Condensed Consolidated Statement of
Earnings:
Quarter Ended
March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
SG&A
|
|
EBIT
(1)
|
|
Net
Earnings
|
|
Diluted
EPS
|
GAAP -
Reported
|
$
|
309.6
|
|
|
$
|
103.9
|
|
|
$
|
89.5
|
|
|
$
|
65.7
|
|
|
$
|
1.14
|
|
% of net
sales
|
50.7
|
%
|
|
17.0
|
%
|
|
|
|
|
|
|
Restructuring and
related charges (2)
|
0.1
|
|
|
—
|
|
|
5.6
|
|
|
3.9
|
|
|
0.07
|
|
Total Adjusted
Non-GAAP
|
$
|
309.7
|
|
|
$
|
103.9
|
|
|
$
|
95.1
|
|
|
$
|
69.6
|
|
|
$
|
1.21
|
|
% of net
sales
|
50.7
|
%
|
|
17.0
|
%
|
|
|
|
|
|
|
Six Months Ended
March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
SG&A
|
|
EBIT
(1)
|
|
Net
Earnings
|
|
Diluted
EPS
|
GAAP -
Reported
|
$
|
537.6
|
|
|
$
|
197.7
|
|
|
$
|
134.4
|
|
|
$
|
99.2
|
|
|
$
|
1.72
|
|
% of net
sales
|
49.1
|
%
|
|
18.0
|
%
|
|
|
|
|
|
|
Restructuring and
related charges (2)
|
0.4
|
|
|
—
|
|
|
12.8
|
|
|
8.8
|
|
|
0.15
|
|
Total Adjusted
Non-GAAP
|
$
|
538.0
|
|
|
$
|
197.7
|
|
|
$
|
147.2
|
|
|
$
|
108.0
|
|
|
$
|
1.87
|
|
% of net
sales
|
49.1
|
%
|
|
18.0
|
%
|
|
|
|
|
|
|
Quarter Ended
March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
SG&A
|
|
EBIT
(1)
|
|
Net
Earnings
|
|
Diluted
EPS
|
GAAP -
Reported
|
$
|
311.1
|
|
|
$
|
99.7
|
|
|
$
|
91.3
|
|
|
$
|
66.1
|
|
|
$
|
1.10
|
|
% of net
sales
|
50.9
|
%
|
|
16.3
|
%
|
|
|
|
|
|
|
Spin costs
|
—
|
|
|
1.7
|
|
|
1.7
|
|
|
0.9
|
|
|
0.01
|
|
Restructuring and
related charges (2)
|
0.1
|
|
|
—
|
|
|
5.1
|
|
|
3.4
|
|
|
0.06
|
|
Industrial sale
charges
|
—
|
|
|
—
|
|
|
0.2
|
|
|
0.1
|
|
|
—
|
|
Total Adjusted
Non-GAAP
|
$
|
311.2
|
|
|
$
|
98.0
|
|
|
$
|
98.3
|
|
|
$
|
70.5
|
|
|
$
|
1.17
|
|
% of net
sales
|
50.9
|
%
|
|
16.0
|
%
|
|
|
|
|
|
|
Six Months Ended
March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
SG&A
|
|
EBIT
(1)
|
|
Net
Earnings
|
|
Diluted
EPS
|
GAAP -
Reported
|
$
|
538.6
|
|
|
$
|
200.1
|
|
|
$
|
122.0
|
|
|
$
|
89.8
|
|
|
$
|
1.49
|
|
% of net
sales
|
48.7
|
%
|
|
18.1
|
%
|
|
|
|
|
|
|
Spin costs
|
0.2
|
|
|
9.0
|
|
|
9.2
|
|
|
5.7
|
|
|
0.10
|
|
Restructuring and
related charges (2)
|
0.1
|
|
|
—
|
|
|
23.6
|
|
|
15.9
|
|
|
0.26
|
|
Industrial sale
charges
|
—
|
|
|
—
|
|
|
0.2
|
|
|
0.1
|
|
|
—
|
|
Total Adjusted
Non-GAAP
|
$
|
538.9
|
|
|
$
|
191.1
|
|
|
$
|
155.0
|
|
|
$
|
111.5
|
|
|
$
|
1.85
|
|
% of net
sales
|
48.7
|
%
|
|
17.3
|
%
|
|
|
|
|
|
|
|
|
(1)
|
EBIT is defined as
Earnings before income taxes.
|
(2)
|
Includes Cost of
products sold of $0.1 and $0.4 for the second quarter and first six
months of fiscal 2017, respectively, and $0.1 for the second
quarter and first six months of fiscal 2016 associated with
obsolescence charges related to the exit of certain non-core
product lines as part of the restructuring.
|
The following table provides a reconciliation of Earnings before
income taxes to adjusted operating income, which is a Non-GAAP
measure, for the second quarters and first six months of fiscal
2017 and 2016:
|
Quarter Ended
March 31,
|
|
Six Months Ended
March 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Earnings before
income taxes
|
$
|
89.5
|
|
|
$
|
91.3
|
|
|
$
|
134.4
|
|
|
$
|
122.0
|
|
Spin costs
(1)
|
—
|
|
|
1.7
|
|
|
—
|
|
|
9.2
|
|
Restructuring and
related charges (2)
|
5.6
|
|
|
5.1
|
|
|
12.8
|
|
|
23.6
|
|
Industrial sale
charges
|
—
|
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
Interest expense
associated with debt
|
17.3
|
|
|
17.8
|
|
|
34.7
|
|
|
35.5
|
|
Other income,
net
|
(6.6)
|
|
|
(4.6)
|
|
|
(8.5)
|
|
|
(7.0)
|
|
Adjusted operating
income
|
$
|
105.8
|
|
|
$
|
111.5
|
|
|
$
|
173.4
|
|
|
$
|
183.5
|
|
% of net
sales
|
17.3
|
%
|
|
18.2
|
%
|
|
15.8
|
%
|
|
16.6
|
%
|
|
|
(1)
|
Includes SG&A of
$1.7 and $9.0 for the second quarter and first six months of fiscal
2016, respectively, and Costs of products sold of $0.2 for the
first six months of fiscal 2016 related to the separation of the
Household Products business in July 2015.
|
(2)
|
Includes Cost of
products sold of $0.1 and $0.4 for the second quarter and first six
months of fiscal 2017, respectively, and $0.1 for the second
quarter and first six months of fiscal 2016 associated with
obsolescence charges related to the exit of certain non-core
product lines as part of the restructuring.
|
The following table provides a reconciliation of the effective
tax rate to the adjusted effective tax rate, which is a Non-GAAP
measure:
|
Six Months Ended
March 31, 2017
|
|
Six Months Ended
March 31, 2016
|
|
Reported
|
|
Adjustments
(1)
|
|
Adjusted
(Non-GAAP)
|
|
Reported
|
|
Adjustments
(1)
|
|
Adjusted
(Non-GAAP)
|
Earnings before
income taxes
|
$
|
134.4
|
|
|
$
|
12.8
|
|
|
$
|
147.2
|
|
|
$
|
122.0
|
|
|
$
|
33.0
|
|
|
$
|
155.0
|
|
Income tax
provision
|
35.2
|
|
|
4.0
|
|
|
39.2
|
|
|
32.2
|
|
|
11.3
|
|
|
43.5
|
|
Net
earnings
|
$
|
99.2
|
|
|
$
|
8.8
|
|
|
$
|
108.0
|
|
|
$
|
89.8
|
|
|
$
|
21.7
|
|
|
$
|
111.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
26.2
|
%
|
|
|
|
|
|
26.4
|
%
|
|
|
|
|
Adjusted effective
tax rate
|
|
|
|
|
26.6
|
%
|
|
|
|
|
|
28.1
|
%
|
|
|
(1)
|
Includes adjustments
for spin costs, restructuring charges, the sale of the industrial
business and the associated tax impact of these charges. See
reconciliation of Net earnings to Adjusted net earnings.
|
Note 3 - Net Sales and Profit by Segment
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 second quarter and first six months of fiscal 2017, as
compared to the corresponding periods in fiscal 2016, and provide a
reconciliation of organic net sales and organic segment profit to
reported amounts.
Net Sales (In
millions - Unaudited)
|
Quarter Ended
March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wet
Shave
|
|
Sun and
Skin
Care
|
|
Feminine
Care
|
|
All
Other
|
|
Total
|
Net Sales - Q2
'16
|
$
|
353.4
|
|
|
|
|
$
|
132.5
|
|
|
|
|
$
|
91.6
|
|
|
|
|
$
|
33.7
|
|
|
|
|
$
|
611.2
|
|
|
|
Organic
|
(7.7)
|
|
|
(2.2)
|
%
|
|
16.2
|
|
|
12.2
|
%
|
|
(8.6)
|
|
|
(9.4)
|
%
|
|
0.7
|
|
|
2.1
|
%
|
|
0.6
|
|
|
0.1
|
%
|
Impact of
acquisition
|
—
|
|
|
—
|
%
|
|
2.9
|
|
|
2.2
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
2.9
|
|
|
0.5
|
%
|
Impact of
currency
|
(3.1)
|
|
|
(0.9)
|
%
|
|
(1.0)
|
|
|
(0.7)
|
%
|
|
0.2
|
|
|
0.2
|
%
|
|
0.2
|
|
|
0.6
|
%
|
|
(3.7)
|
|
|
(0.6)
|
%
|
Net Sales - Q2
'17
|
$
|
342.6
|
|
|
(3.1)
|
%
|
|
$
|
150.6
|
|
|
13.7
|
%
|
|
$
|
83.2
|
|
|
(9.2)
|
%
|
|
$
|
34.6
|
|
|
2.7
|
%
|
|
$
|
611.0
|
|
|
—
|
%
|
Net Sales (In
millions - Unaudited)
|
Six Months Ended
March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wet
Shave
|
|
Sun and
Skin
Care
|
|
Feminine
Care
|
|
All
Other
|
|
Total
|
Net Sales - FY
'16
|
$
|
669.7
|
|
|
|
|
$
|
186.0
|
|
|
|
|
$
|
184.1
|
|
|
|
|
$
|
66.5
|
|
|
|
|
$
|
1,106.3
|
|
|
|
Organic
|
(15.4)
|
|
|
(2.3)
|
%
|
|
17.2
|
|
|
9.2
|
%
|
|
(12.0)
|
|
|
(6.5)
|
%
|
|
0.2
|
|
|
0.3
|
%
|
|
(10.0)
|
|
|
(0.9)
|
%
|
Impact of
acquisition
|
—
|
|
|
—
|
%
|
|
6.1
|
|
|
3.3
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
6.1
|
|
|
0.6
|
%
|
Impact of
currency
|
(5.5)
|
|
|
(0.8)
|
%
|
|
(1.1)
|
|
|
(0.6)
|
%
|
|
0.2
|
|
|
0.1
|
%
|
|
—
|
|
|
—
|
%
|
|
(6.4)
|
|
|
(0.6)
|
%
|
Net Sales - FY
'17
|
$
|
648.8
|
|
|
(3.1)
|
%
|
|
$
|
208.2
|
|
|
11.9
|
%
|
|
$
|
172.3
|
|
|
(6.4)
|
%
|
|
$
|
66.7
|
|
|
0.3
|
%
|
|
$
|
1,096.0
|
|
|
(0.9)
|
%
|
Segment Profit (In
millions - Unaudited)
|
Quarter Ended
March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wet
Shave
|
|
Sun and
Skin
Care
|
|
Feminine
Care
|
|
All
Other
|
|
Total
|
Segment Profit - Q2
'16
|
$
|
77.7
|
|
|
|
|
$
|
39.2
|
|
|
|
|
$
|
10.5
|
|
|
|
|
$
|
8.0
|
|
|
|
|
$
|
135.4
|
|
|
|
Organic
|
(5.1)
|
|
|
(6.6)
|
%
|
|
11.9
|
|
|
30.4
|
%
|
|
(9.0)
|
|
|
(85.7)
|
%
|
|
(0.4)
|
|
|
(5.0)
|
%
|
|
(2.6)
|
|
|
(1.9)
|
%
|
Impact of
acquisition
|
—
|
|
|
—
|
%
|
|
0.3
|
|
|
0.8
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
0.3
|
|
|
0.2
|
%
|
Impact of
currency
|
0.6
|
|
|
0.8
|
%
|
|
(0.5)
|
|
|
(1.4)
|
%
|
|
0.1
|
|
|
0.9
|
%
|
|
0.1
|
|
|
1.2
|
%
|
|
0.3
|
|
|
0.2
|
%
|
Segment Profit - Q2
'17
|
$
|
73.2
|
|
|
(5.8)
|
%
|
|
$
|
50.9
|
|
|
29.8
|
%
|
|
$
|
1.6
|
|
|
(84.8)
|
%
|
|
$
|
7.7
|
|
|
(3.8)
|
%
|
|
$
|
133.4
|
|
|
(1.5)
|
%
|
Segment Profit (In
millions - Unaudited)
|
Six Months Ended
March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wet
Shave
|
|
Sun and
Skin
Care
|
|
Feminine
Care
|
|
All
Other
|
|
Total
|
Segment Profit - FY
'16
|
$
|
144.5
|
|
|
|
|
$
|
40.9
|
|
|
|
|
$
|
28.1
|
|
|
|
|
$
|
15.2
|
|
|
|
|
$
|
228.7
|
|
|
|
Organic
|
(0.8)
|
|
|
(0.6)
|
%
|
|
11.6
|
|
|
28.4
|
%
|
|
(18.3)
|
|
|
(65.1)
|
%
|
|
(0.7)
|
|
|
(4.6)
|
%
|
|
(8.2)
|
|
|
(3.6)
|
%
|
Impact of
acquisition
|
—
|
|
|
—
|
%
|
|
(0.1)
|
|
|
(0.2)
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
(0.1)
|
|
|
—
|
%
|
Impact of
currency
|
1.5
|
|
|
1.1
|
%
|
|
(0.7)
|
|
|
(1.8)
|
%
|
|
0.1
|
|
|
0.3
|
%
|
|
0.1
|
|
|
0.7
|
%
|
|
1.0
|
|
|
0.4
|
%
|
Segment Profit - FY
'17
|
$
|
145.2
|
|
|
0.5
|
%
|
|
$
|
51.7
|
|
|
26.4
|
%
|
|
$
|
9.9
|
|
|
(64.8)
|
%
|
|
$
|
14.6
|
|
|
(3.9)
|
%
|
|
$
|
221.4
|
|
|
(3.2)
|
%
|
Note 4 - EBITDA
The Company reports financial results on a GAAP and adjusted
basis. The table below is used to reconcile Net earnings to
EBITDA and Adjusted EBITDA, which are Non-GAAP measures, to improve
comparability of results between periods.
|
Quarter Ended
March 31,
|
|
Six Months Ended
March 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net
earnings
|
$
|
65.7
|
|
|
$
|
66.1
|
|
|
$
|
99.2
|
|
|
$
|
89.8
|
|
Income tax
provision
|
23.8
|
|
|
25.2
|
|
|
35.2
|
|
|
32.2
|
|
Interest expense, net
(1)
|
17.5
|
|
|
14.8
|
|
|
34.7
|
|
|
32.5
|
|
Depreciation and
amortization
|
24.6
|
|
|
25.1
|
|
|
49.1
|
|
|
45.8
|
|
EBITDA
|
131.6
|
|
|
131.2
|
|
|
218.2
|
|
|
200.3
|
|
|
|
|
|
|
|
|
|
Spin costs
|
—
|
|
|
1.7
|
|
|
—
|
|
|
9.2
|
|
Restructuring and
related costs (2)
|
4.5
|
|
|
4.6
|
|
|
10.6
|
|
|
22.4
|
|
Industrial sale
charges
|
—
|
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
Adjusted
EBITDA
|
$
|
136.1
|
|
|
$
|
137.7
|
|
|
$
|
228.8
|
|
|
$
|
232.1
|
|
|
|
(1)
|
Interest expense, net
for the second quarter and first six months of fiscal 2016 includes
$2.6 of income recorded in relation to settlements with tax
authorities.
|
(2)
|
Excludes $1.1 and
$0.5 of accelerated depreciation for the second fiscal quarters of
2017 and 2016, respectively, and $2.2 and $1.2 for the first six
months of fiscal 2017 and 2016, respectively, which are included
within Depreciation and amortization.
|
Note 5 - Outlook
The following tables provide reconciliations of Adjusted EPS,
which is a Non-GAAP measure, included within the Company's outlook
for projected fiscal 2017 results:
Adjusted EPS
Outlook
|
|
|
Fiscal 2017 GAAP
EPS
|
|
$3.50 -
$3.70
|
|
|
|
Restructuring and
related costs
|
approx.
|
$0.46
|
Income
taxes
|
approx.
|
$(0.16)
|
|
|
|
Fiscal 2017 Adjusted
EPS Outlook (Non-GAAP)
|
|
$3.80 -
$4.00
|
Note 6 - Adjusted Working Capital
Adjusted working capital metrics for the first and second
quarters of fiscal 2017 and the fourth quarter of fiscal 2016 are
presented below.
|
Q2
2017
|
|
Days
(1)
|
|
Q1
2017
|
|
Days
(1)
|
|
Q4
2016
|
|
Days
(1)
|
Receivables, as
reported
|
$
|
277.2
|
|
|
|
|
$
|
272.3
|
|
|
|
|
$
|
275.2
|
|
|
|
Less: Trade allowance
in accrued liabilities (2)
|
(27.6)
|
|
|
|
|
(27.6)
|
|
|
|
|
(28.1)
|
|
|
|
Receivables,
adjusted
|
249.6
|
|
|
39
|
|
|
244.7
|
|
|
38
|
|
|
247.1
|
|
|
38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventories, as
reported
|
337.0
|
|
|
103
|
|
|
341.1
|
|
|
105
|
|
|
345.3
|
|
|
105
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable, as
reported
|
203.2
|
|
|
62
|
|
|
204.1
|
|
|
63
|
|
|
211.4
|
|
|
64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average adjusted
working capital (3)
|
$
|
383.4
|
|
|
|
|
$
|
381.7
|
|
|
|
|
$
|
381.0
|
|
|
|
% of net sales
(4)
|
16.3
|
%
|
|
|
|
16.2
|
%
|
|
|
|
16.1
|
%
|
|
|
|
|
(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.
|
(2)
|
Trade allowances are
recorded as a reduction of net sales per GAAP and reported in
accrued expenses on the Condensed Consolidated Balance
Sheets.
|
(3)
|
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 March 31, 2017, December 31, 2016 and September 30, 2016,
respectively.
|
(4)
|
Average adjusted
working capital divided by trailing four-quarter net
sales.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/edgewell-personal-care-announces-second-quarter-fiscal-2017-results-and-updates-fiscal-year-2017-financial-outlook-300449155.html
SOURCE Edgewell Personal Care Company