ST. LOUIS, Nov. 13, 2015
/PRNewswire/ -- Edgewell Personal Care Company
(NYSE: EPC) today announced results for the
full year and fourth quarter, which ended September 30, 2015. This is Edgewell's
first quarter following the spin-off of its Household Products
business on July 1, 2015. The
historical results for the Household Products business are
presented as discontinued operations.
Executive Summary
- 4Q Adjusted EBITDA was $83.0
million; full-year adjusted normalized EBITDA was
$462.2 million.
- Full year organic net sales declined 2.5%, while 4Q organic net
sales decreased 7.0%, including an approximate 200 basis point
decline due to international go-to-market changes.
- 4Q Adjusted Diluted EPS from continuing operations was
$0.64.
- 4Q GAAP Earnings Per Share (EPS) was a loss from continuing
operations of $3.15, which includes a
non-cash intangible asset impairment pre-tax charge of $318.2 million.
- Repurchased 2.2 million shares in the quarter for $187.6 million.
- The Company's outlook for fiscal 2016 is for relatively flat
organic sales and $440-$460 million
in adjusted EBITDA, including a $15-$20
million negative impact from currency.
"We made significant progress during Edgewell's first quarter as
a standalone company. We navigated operational complexities
related to the spin-off, while taking the actions needed for
long-term success," said David
Hatfield, Edgewell's President and Chief Executive
Officer. "During the quarter we executed against our
international go-to-market initiatives and invested in our brands,
actions that will help position us well strategically for the
future. Our top and bottom-line results reflect those
actions, and while our results for the quarter came in below
expectations, they do not change our view of 2016 or affect the
long-term strategy that we laid out at our analyst day in June
2015. We are confident that we are taking the right steps to
position our company for future growth and success." Mr.
Hatfield continued, "We are committed to returning capital to our
shareholders and during the quarter repurchased more than 2 million
shares."
The Company reports results on a GAAP and adjusted "Non-GAAP"
basis, as defined within this release. Adjusted measures are
reconciled to the most directly comparable GAAP measures later in
this release. All comparisons are with the same period in the
prior fiscal year unless otherwise stated.
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 the period-over-period change in Venezuela and Industrial results. This
information is provided because these fluctuations can distort the
underlying change in net sales and segment profit either positively
or negatively. See Non-GAAP reconciliations later in this
release.
Historical results on a continuing operations basis include
certain costs associated with supporting the Household Products
business that are not eligible to be reported in discontinued
operations. These costs affect selling, general and administrative
expense ("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 will not be comparable as we move through
each of the first three quarters of fiscal 2016. To address
this, we have provided normalized EBITDA reflecting pro forma
adjustments to SG&A. See Non-GAAP reconciliations later
in this release.
Fiscal 4Q 2015 Operating Results (Unaudited)
Net sales decreased 14.4%, with an organic net sales
decline of 7.0%. The decline was driven by international
go-to-market and other transition impacts and higher trade and
sales promotion spending in North
America and Europe. Excluding the international
go-to-market impacts, organic net sales were down approximately
4.7%.
In North America, trade and
price promotion investments increased in the current year to
support the Playtex Sport branded pads and liners launch and
promotional activities across all segments within Wet Shave.
In addition, prior year net sales were favorably impacted by lower
than anticipated coupon redemption and trade promotion
activity. The decrease in net sales related to trade and
sales promotion spending was partially offset in the U. S. by both
category performance and improvements in our market shares in Wet
Shave, Feminine Care and Sun
Care.
To compete more effectively as an independent company, we have
increased our use of third-party distributors and wholesalers, and
have decreased or eliminated our business operations in certain
countries, consistent with our international go-to-market strategy.
Within this press release we discuss go-to-market impacts which
reflect our best estimate on the impact of these international
go-to-market changes and exits, and represent the year over year
change in those markets. We expect to realize the majority of the
impact from these changes in the fourth quarter of 2015 and the
first three quarters of fiscal year 2016.
Gross margin decreased 420 basis points to 48.1%.
Gross margin declined 310 basis points excluding the negative
impact of currency and the change in Venezuela results. Gross margin declines
were driven by increased price promotion, which more than offset
volume and cost mix improvements.
Advertising and sales promotion expense (A&P) was
$95.7 million, or 17.1% of net
sales. This represents a decrease of $26.1 million, or 150 basis points as a percent
of net sales, due to lower investments in the quarter, related
primarily to timing of spend, as overall A&P in the fiscal year
was up 100 basis points versus the prior year on a percent of net
sales basis. In the fourth quarter of 2014, A&P was at
higher than normal levels due to investments supporting our
acquired Feminine Care brands.
Selling, general and administrative expense was
$123.5 million, or 22.0% of net
sales, compared to $147.5 million, or
22.5% of net sales, in the prior year quarter. Included
within the current quarter results were pre-tax costs of
$30.3 million related to the
spin-off. Excluding these spin-off costs, SG&A as a
percent of net sales was 16.7%, including corporate
amortization. Historical SG&A results on a continuing
operations basis include certain costs associated with supporting
the Household Product business that are not eligible to be reported
in discontinued operations.
Fourth quarter segment profit of $76.9 million declined $27.3 million, or 23.3%, on an organic basis, due
to lower sales and gross margin related primarily to higher
promotion expense, partially offset by lower A&P spending.
The full-year effective tax rate for fiscal 2015 for
continuing operations was 35.4% as compared to 19.3% in the
prior year. The tax rate for 2015 reflects a tax benefit on a
net loss primarily due to increased expenses in higher-rate tax
jurisdictions, including spin-related expenses and the impairment
charge, offset in part by the Venezuela deconsolidation charge, which had no
accompanying tax benefit. The fiscal 2015 adjusted effective
tax rate for continuing operations was 23.2% as compared to 28.4%
in the prior year. The decrease was due to a higher mix of
earnings in lower-rate tax jurisdictions compared to the prior
year.
Fourth quarter adjusted net earnings per diluted share
from continuing operations increased 34.8% to $0.64. On a GAAP basis, net loss per share
from continuing operations was $3.15
as compared to net earnings per diluted share of $0.30 in the prior year quarter. Growth in
adjusted EPS was largely driven by a lower tax rate and lower
SG&A and reduced interest costs compared to the prior year,
which included higher costs associated with supporting the
Household Product business that are not eligible to be reported in
discontinued operations.
Fourth quarter adjusted EBITDA was $83.0 million versus a normalized fourth quarter
2014 EBITDA of $110.3
million. Declines in gross margin and a $17 million negative impact from currency were
partly offset by lower A&P and SG&A costs in the
quarter.
Other Items
During the fourth quarter, the Company recorded a pre-tax,
non-cash intangible asset impairment charge of $318.2 million to adjust the carrying values of
indefinite-lived tradenames related to the Playtex, Wet-Ones and
Skintimate brands. While we are still optimistic about the
future potential and value of these brands, declining performance
over the past twelve months impacted growth and cash flow
projections. The impairment charge has no impact on cash
balances, operating cash flows or business outlook, and is not
expected to impact the ability of the Company to achieve its
long-term objectives.
The sale of the Industrial Blade business was completed
in September and resulted in a pre-tax loss on the sale of
$10.8 million and $32.7 million for the quarter and year ended
September 30, 2015, respectively.
In the fourth quarter of 2015, the Company incurred $30.3 million of pre-tax spin charges
($30.1 million included in SG&A
and $0.2 million included in Cost of
products sold); and $142.0 million of
such charges for the year ended September
30, 2015 ($137.8 million
reported in SG&A and $4.2 million
included in Cost of products sold). The Company also incurred
$28.3 million of pre-tax spin
restructuring charges for the year ended September 30, 2015. Additionally, for the
quarter and year ended September 30,
2015, the Company recorded pre-tax expense of $6.3 million and $26.7
million, respectively, related to its 2013
restructuring as compared to pre-tax expense of $12.7 million and $49.9
million, respectively, for the quarter and year ended
September 30, 2014.
4Q Operating Segment Results (Unaudited)
Wet Shave (Men's Systems, Women's Systems, Disposables,
Shave Preps)
Wet Shave organic net sales decreased $21.8 million, or 5.2%, in the fourth quarter,
driven by the impact of international go-to-market changes,
transition issues in international markets and higher sales and
trade promotions in North America. Organic segment profit
declined $26.4 million or 26.2% as
higher sales promotions and increased investment in Research and
Development (R&D) were only partially offset by higher volumes
and lower A&P spend.
Sun and Skin Care (Sun
Care, Wipes, Gloves)
Sun and Skin Care organic net sales decreased slightly, down
0.3%, driven by international sales declines related to
go-to-market changes, transition issues and promotional spending,
which was partially offset by growth in North America due to higher Sun Care volumes related to late season
replenishment and promotions. Organic segment profit declined
$1.0 million or 15.4% as higher
promotional spending was only partially offset by higher volume and
improved price mix.
Feminine Care (Tampons, Pads, Liners)
Feminine Care organic net sales decreased $19.7 million, or 16.7%, in the fourth quarter,
driven primarily by higher investment in sales and trade promotions
in support of Playtex Sport pads and liners in North America, and to a lesser extent
go-to-market and other transition impacts internationally.
Organic segment profit was down $1.1
million, or 14.6%, as the sales decline was somewhat offset
by lower A&P and product costs.
All Other (Infant Care,
all other brands)
All Other had an organic net sales decrease of $4.4 million, or 9.0%, due to lower volumes
related to the ongoing impact of competitive pressure and share
loss, particularly in cups and bottles. Organic segment
profit increased $1.2 million, or
40.0%, driven by lower A&P spending and improved cost mix,
which more than offset lower volumes.
Fiscal 2015 Operating Results (Unaudited)
- Net sales of $2,421.2
million decreased 7.3% or 2.5% on an organic basis. These
results include a 60 basis point impact of international
go-to-market changes and other transition issues related to the
spin-off. After three solid quarters of growth, international sales
were down 0.4% for the year, reflecting the impact of go-to-market
changes in the fourth quarter. Underlying sales, excluding the
go-to-market impact were up, driven by growth in Asia Pacific in both Wet Shave and Sun and
Skin Care. North America organic
net sales were down 3.7%, driven by increased trade and promotional
investment in the fourth quarter, as well as declines in
Infant Care.
- Gross margin increased 50 basis points excluding the
negative impact of currency, due to lower product costs and
favorable mix, mostly offset by go-to-market impacts.
- Advertising and sales promotion expense increased to
15.2% of net sales, up 100 basis points, due to increased
investments in Wet Shave and Sun and Skin Care.
- Selling, general and administrative expense as a percent
of net sales (exclusive of acquisition, integration, spin-off
transaction and restructuring related charges) was 17.9%.
Historical SG&A results on a continuing operations basis
include certain costs associated with supporting the Household
Product business that are not eligible to be reported in
discontinued operations.
- Adjusted net earnings per diluted share were
$2.80 compared to $2.76 in the prior year.
- GAAP net loss per share from continuing operations was
$4.78 compared to net earnings per
share of $1.88 in the prior
year.
- Normalized EBITDA, adjusted for SG&A in the first
three quarters of 2015, was $462.2
million compared to $524.4
million in the prior year. The decrease was due to a
negative impact of $56 million from
currency, lower organic sales and higher A&P spending.
Fiscal Year 2016 Financial Outlook
"Looking ahead, we are on track with the long-term strategy and
business plan that we presented to investors in June. We will
continue to build on our progress to date by executing go-to-market
changes, overcoming dis-synergies related to the spin and
stabilizing our North America
business," continued Mr. Hatfield. "For 2016, we see
generally flat organic performance for both net sales and adjusted
EBITDA. Although currency will continue to have a negative
impact on both the top and bottom line, operationally, we are
encouraged by positive trends in the categories, improved share
performance, and we are excited about up-coming new innovation in
our Hydro line in early 2016."
Organic net sales are expected to be flat for the
year.
- Organic net sales growth will be negatively impacted by
go-to-market changes in the first three quarters of fiscal
2016.
- Underlying sales growth, excluding the go-to-market changes, is
expected to increase in the low single digits.
- Unfavorable foreign currency impact on net sales of
$40-$50 million.
- Reported net sales are expected to decrease in the mid-single
digits.
FY 2016 Adjusted EBITDA is projected to be in the range of
$440-$460 million, including
$15-$20 million negative impact from
currency.
- Projected adjusted EBITDA includes: $15-$20 million negative currency impact,
international go-to-market impacts, dis-synergies, the year over
year impact of Venezuela and
Industrial, and restructuring savings.
FY 2016 Adjusted EPS is projected to be in the range of
$3.20-$3.40, which excludes items
such as restructuring and spin costs.
- Unfavorable foreign currency impact of approximately
$15-$20 million based upon recent
rates.
- Our projections assume a 32% adjusted tax rate.
Other Items: We expect to incur spin costs of
$10-$12 million in fiscal 2016,
primarily in the first half of the year. Restructuring
related costs are anticipated to be $40-$45
million for the fiscal year. We expect incremental
savings of approximately $15 million
in fiscal 2016, and an additional $40-$50
million in fiscal 2017 and 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 2015
full year and fourth fiscal 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
"Webcasts and Presentations" tabs or by using the following
link:
http://ir.edgewell.com/phoenix.zhtml?c=254077&p=irol-calendar
For those unable to participate during the live webcast, a
replay will be available on www.edgewell.com, under "Investors",
"Investor Information", "Webcasts and Presentations", and "Audio
Archives" 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" and exclude expenses associated with (1)
spin costs, (2) restructuring charges (including 2013 restructuring
and spin restructuring), (3) acquisition and integration expenses
(including acquisition inventory valuation charges), (4)
Venezuela deconsolidation charges
(5) cost of early debt retirements, (6) industrial blade sale, (7)
impairment charge and (8) adjustments to prior year tax
accruals.
This Non-GAAP information is provided as a supplement, 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.
Finally, the Company believes this information provides a higher
degree of transparency.
Adjusted EBITDA is defined as earnings before income taxes,
interest income and expense, depreciation and amortization and
excludes items such as spin costs, restructuring charges,
impairment charges, acquisition and integration expenses,
Venezuela deconsolidation charges,
cost of early debt retirements and adjustments to prior year tax
accruals.
Normalized EBITDA 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.
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
excludes the impact of changes in foreign currency, the impact of
acquisitions, and the period-over-period change in Venezuela and Industrial results. This
information is provided because these types of fluctuations can
distort the underlying change in net sales either positively or
negatively.
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 the 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:
- Whether the operational, marketing and strategic benefits of
the recently completed separation can be achieved;
- Whether the remaining costs and expenses resulting from the
separation can be controlled within expectations;
- General market and economic conditions;
- Market trends in the categories in which the Company
operates;
- The success of new products and the ability to continually
develop and market new products;
- The Company's ability to attract, retain and improve
distribution with key customers;
- The Company's ability to continue planned advertising and other
promotional spending and the effectiveness of such spending;
- The Company's ability to timely execute strategic initiatives,
including restructurings, in a manner that will positively impact
its financial condition and results of operations and does not
disrupt its business operations;
- The impact of strategic initiatives, as well as restructurings,
on the Company's relationships with employees, customers and
vendors;
- The Company's ability to maintain and improve market share in
the categories in which it operates despite heightened competitive
pressure;
- The Company's ability to improve operations and realize cost
savings;
- The impact of foreign currency exchange rates and currency
controls, as well as offsetting hedges;
- The impact of raw material and other commodity costs;
- Goodwill impairment charges resulting from declines in
profitability or estimated cash flows related to intangible assets
or market valuations for similar assets;
- Costs and reputational damage associated with cyber-attacks or
information security breaches;
- The Company's ability to acquire and integrate businesses, and
to realize the projected results of acquisitions;
- The impact of advertising and product liability claims and
other litigation;
- Compliance with debt covenants and maintenance of credit
ratings as well as the impact of interest and principal repayment
of our existing and any future debt; or
- The impact of legislative or regulatory determinations or
changes by federal, state and local, and foreign authorities,
including taxing authorities.
In addition, other risks and uncertainties not presently known
to the Company or that it considers immaterial could affect the
accuracy of any such forward-looking statements. The list of
factors above is illustrative, but by no means 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 the Company's annual
report on Form 10-K for the year ended September 30, 2014 and its quarterly reports on
Form 10-Q for the quarters ended December
31, 2014, March 30, 2015 and
June 30, 2015.
EDGEWELL PERSONAL
CARE COMPANY
|
CONSOLIDATED
STATEMENTS OF EARNINGS
|
(Condensed)
|
(In millions,
except per share data - Unaudited)
|
|
|
|
Quarter Ended
September 30,
|
|
Year Ended
September 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
560.1
|
|
|
$
|
654.7
|
|
|
$
|
2,421.2
|
|
|
$
|
2,612.2
|
|
Cost of products
sold
|
|
290.8
|
|
|
312.5
|
|
|
1,237.4
|
|
|
1,322.3
|
|
Gross
profit
|
|
269.3
|
|
|
342.2
|
|
|
1,183.8
|
|
|
1,289.9
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expense
|
|
123.5
|
|
|
147.5
|
|
|
571.6
|
|
|
534.7
|
|
Advertising and sales
promotion expense
|
|
95.7
|
|
|
121.8
|
|
|
367.1
|
|
|
371.3
|
|
Research and
development expense
|
|
22.5
|
|
|
19.6
|
|
|
71.0
|
|
|
69.5
|
|
Impairment
charge
|
|
318.2
|
|
|
—
|
|
|
318.2
|
|
|
—
|
|
Venezuela
deconsolidation charge
|
|
—
|
|
|
—
|
|
|
79.3
|
|
|
—
|
|
Spin restructuring
charges
|
|
—
|
|
|
—
|
|
|
28.3
|
|
|
—
|
|
2013 restructuring
and related costs
|
|
6.3
|
|
|
12.7
|
|
|
26.7
|
|
|
49.9
|
|
Industrial sale
charges
|
|
10.8
|
|
|
—
|
|
|
32.7
|
|
|
—
|
|
Net pension and
post-retirement benefit gains
|
|
—
|
|
|
(1.1)
|
|
|
—
|
|
|
(1.1)
|
|
Interest
expense
|
|
16.4
|
|
|
28.2
|
|
|
99.8
|
|
|
119.0
|
|
Cost of early debt
retirements
|
|
—
|
|
|
—
|
|
|
59.6
|
|
|
—
|
|
Other (income)
expense, net
|
|
(3.5)
|
|
|
5.0
|
|
|
(11.8)
|
|
|
0.8
|
|
(Loss) earnings from
continuing operations before income taxes
|
|
(320.6)
|
|
|
8.5
|
|
|
(458.7)
|
|
|
145.8
|
|
Income tax (benefit)
provision for continuing operations
|
|
(126.9)
|
|
|
(10.0)
|
|
|
(162.6)
|
|
|
28.1
|
|
Net (loss) earnings
from continuing operations
|
|
$
|
(193.7)
|
|
|
$
|
18.5
|
|
|
$
|
(296.1)
|
|
|
$
|
117.7
|
|
Net (loss) earnings
from discontinued operations, net of tax
|
|
$
|
(25.8)
|
|
|
$
|
66.7
|
|
|
$
|
20.8
|
|
|
$
|
238.4
|
|
Net (loss)
earnings
|
|
$
|
(219.5)
|
|
|
$
|
85.2
|
|
|
$
|
(275.3)
|
|
|
$
|
356.1
|
|
|
|
|
|
|
|
|
|
|
Basic net (loss)
earnings per share:
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
(3.15)
|
|
|
$
|
0.30
|
|
|
$
|
(4.78)
|
|
|
$
|
1.90
|
|
Discontinued operations
|
|
$
|
(0.42)
|
|
|
$
|
1.08
|
|
|
$
|
0.34
|
|
|
$
|
3.85
|
|
Net (loss) earnings
|
|
$
|
(3.57)
|
|
|
$
|
1.38
|
|
|
$
|
(4.44)
|
|
|
$
|
5.74
|
|
|
|
|
|
|
|
|
|
|
Diluted net (loss)
earnings per share:
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
(3.15)
|
|
|
$
|
0.30
|
|
|
$
|
(4.78)
|
|
|
$
|
1.88
|
|
Discontinued operations
|
|
$
|
(0.42)
|
|
|
$
|
1.07
|
|
|
$
|
0.34
|
|
|
$
|
3.81
|
|
Net (loss) earnings
|
|
$
|
(3.57)
|
|
|
$
|
1.36
|
|
|
$
|
(4.44)
|
|
|
$
|
5.69
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
61.5
|
|
|
61.8
|
|
|
62.0
|
|
|
62.0
|
|
Diluted
|
|
61.5
|
|
|
62.5
|
|
|
62.0
|
|
|
62.6
|
|
See Accompanying Notes
EDGEWELL PERSONAL
CARE COMPANY
|
NOTES TO CONDENSED
FINANCIAL STATEMENTS
|
September 30,
2015
|
(In millions,
except per share data - Unaudited)
|
|
1.
|
Operations for the
Company are managed via four segments: Wet Shave, Sun and Skin
Care, Feminine Care and All Other products. Segment
performance is evaluated based on segment operating profit,
exclusive of (1) general corporate expenses, (2) share-based
compensation costs, (3) restructuring charges (including 2013
restructuring and spin restructuring), (4) Venezuela
deconsolidation charge, (5) acquisition and integration expense,
(6) amortization of intangible assets, (7) cost of early debt
retirements, (8) Industrial Blade sale and (9) impairment
charge. Financial items, such as interest income and expense,
are managed on a global basis at the corporate level. The
exclusion of charges such as other acquisition transaction and
integration costs, and substantially all restructuring costs, from
segment results reflects management's view on how it evaluates
segment performance.
|
|
|
|
On July 1, 2015, the
Company completed the spin-off of its Household Products
business. Discontinued operations on the income statement
include the results of the Household Products business, except for
certain corporate overhead costs and other allocations which remain
in continuing operations.
|
|
|
|
For the quarter and
year ended September 30, 2015, the Company recorded an intangible
asset impairment charge of $318.2. The impairment charge was
reported as a separate line item on the income
statement.
|
|
|
|
For the year ended
September 30, 2015, the Company recorded a charge of $79.3 as a
result of deconsolidating its Venezuelan subsidiaries, which had no
accompanying tax benefit. The Venezuela deconsolidation
charge was reported as a separate line item on the income
statement.
|
|
|
|
On July 1, 2015, the
Company completed the previously announced separation of its
Household Products business into a separate publicly-traded company
(the "Spin" or the "Separation"). The Company incurred
incremental costs to evaluate, plan and execute the
Separation. For the quarter and year ended September 30,
2015, $30.1 and $137.8, respectively, of pre-tax charges were
recorded in Selling, general and administrative expense
("SG&A") and $0.2 and $4.2, respectively, of pre-tax charges
for the quarter and year ended September 30, 2015 were recorded in
Cost of products sold.
|
|
|
|
For the quarter and
year ended September 30, 2015, the Company recorded pre-tax expense
of $6.3 and $26.7, respectively, related to its 2013 restructuring,
as compared to pre-tax expense of $12.7 and $49.9 for the quarter
and year ended September 30, 2014, respectively. The 2013
restructuring charges were reported as a separate line item on the
income statement. In addition, pre-tax costs of $0.3 the year
ended September 30, 2015 and $0.4 and $4.3, respectively, for the
quarter and year ended September 30, 2014 associated with certain
information technology enablement activities related to the
Company's restructuring initiatives were included in
SG&A. Additionally, pre-tax positive adjustments of $0.7
for the quarter and year ended September 30, 2014, associated with
the Company's restructuring, were included in cost of products
sold.
|
|
|
|
For the quarter and
year ended September 30, 2015, the Company recorded pre-tax expense
of $10.8 and $32.7, respectively, related to its sale of the
Industrial Blade product line. The Industrial Blade sale
charges were reported as a separate line item in the income
statement.
|
|
|
|
In connection with
the Company's October 2013 acquisition of certain feminine care
brands from Johnson & Johnson (the "feminine care
acquisition"), the Company recorded pre-tax acquisition and
integration costs of $2.0 and $9.5, respectively, for the quarter
and year ended September 30, 2014. These amounts were not
reflected in the Feminine Care segment, but rather were presented
as a separate line item below segment profit. Such
presentation reflects management's view on how segment results are
evaluated.
|
|
|
|
For the year ended
September 30, 2014, the Company recorded $8.0 within Cost of
products sold based upon the write-up and subsequent sale of
inventory acquired in the feminine care acquisition. These
amounts were not reflected in the Feminine Care segment, but rather
presented as a separate line item below segment profit. Such
presentation reflects management's view on how segment results are
evaluated.
|
|
|
|
For the year ended
September 30, 2015, the Company recorded early debt retirement
costs of $59.6 associated with the prepayment of its private
placement notes on May 29, 2015.
|
|
|
|
Segment net sales and
profitability for the quarter and year ended September 30, 2015 and
2014, respectively, are presented below.
|
|
|
Quarter Ended
September 30,
|
|
Year
Ended
September 30,
|
Net
Sales
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Wet Shave
|
|
$
|
358.4
|
|
|
$
|
419.3
|
|
|
$
|
1,441.3
|
|
|
$
|
1,585.8
|
|
Sun and Skin
Care
|
|
65.8
|
|
|
68.7
|
|
|
403.6
|
|
|
424.5
|
|
Feminine
Care
|
|
96.7
|
|
|
117.9
|
|
|
398.2
|
|
|
404.5
|
|
All Other
|
|
39.2
|
|
|
48.8
|
|
|
178.1
|
|
|
197.4
|
|
Total net
sales
|
|
$
|
560.1
|
|
|
$
|
654.7
|
|
|
$
|
2,421.2
|
|
|
$
|
2,612.2
|
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
|
|
|
|
|
|
|
Wet Shave
|
|
$
|
62.0
|
|
|
$
|
100.4
|
|
|
$
|
308.7
|
|
|
$
|
388.2
|
|
Sun and Skin
Care
|
|
4.7
|
|
|
6.5
|
|
|
71.5
|
|
|
73.9
|
|
Feminine
Care
|
|
4.7
|
|
|
7.5
|
|
|
48.7
|
|
|
51.1
|
|
All Other
|
|
5.5
|
|
|
3.0
|
|
|
24.6
|
|
|
17.4
|
|
Total segment
profit
|
|
76.9
|
|
|
117.4
|
|
|
453.5
|
|
|
530.6
|
|
General corporate and
other expenses
|
|
(15.4)
|
|
|
(38.3)
|
|
|
(122.0)
|
|
|
(151.8)
|
|
Impairment
charge
|
|
(318.2)
|
|
|
—
|
|
|
(318.2)
|
|
|
—
|
|
Venezuela
deconsolidation charge
|
|
—
|
|
|
—
|
|
|
(79.3)
|
|
|
—
|
|
Spin costs
(1)
|
|
(30.3)
|
|
|
(20.2)
|
|
|
(142.0)
|
|
|
(24.4)
|
|
Spin restructuring
charges
|
|
—
|
|
|
—
|
|
|
(28.3)
|
|
|
—
|
|
2013 restructuring
and related charges (2)
|
|
(6.3)
|
|
|
(12.4)
|
|
|
(27.0)
|
|
|
(53.5)
|
|
Industrial sale
charges
|
|
(10.8)
|
|
|
—
|
|
|
(32.7)
|
|
|
—
|
|
Feminine care
acquisition and integration costs
|
|
—
|
|
|
(2.0)
|
|
|
—
|
|
|
(9.5)
|
|
Acquisition inventory
valuation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8.0)
|
|
Net pension and
post-retirement gains
|
|
—
|
|
|
1.1
|
|
|
—
|
|
|
1.1
|
|
ASR transaction costs
and integration
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.0)
|
|
Amortization of
intangibles
|
|
(3.6)
|
|
|
(3.9)
|
|
|
(15.1)
|
|
|
(17.9)
|
|
Cost of early debt
retirements
|
|
—
|
|
|
—
|
|
|
(59.6)
|
|
|
—
|
|
Interest and other
expense, net
|
|
(12.9)
|
|
|
(33.2)
|
|
|
(88.0)
|
|
|
(119.8)
|
|
Total (loss)
earnings from continuing operations before income
taxes
|
|
$
|
(320.6)
|
|
|
$
|
8.5
|
|
|
$
|
(458.7)
|
|
|
$
|
145.8
|
|
|
|
(1)
|
Includes pre-tax
costs of $30.1 and $137.8, respectively, for the quarter and year
ended September 30, 2015 and $20.2 and $24.4 for the quarter and
year ended September 30, 2014 which are included in SG&A.
Additionally, pre-tax costs of $0.2 and $4.2, respectively, for the
quarter and year ended September 30, 2015 were included in Cost of
products sold.
|
(2)
|
Includes pre-tax
costs of $0.3 for the year ended September 30, 2015 and $0.4 and
$4.3, respectively, for the quarter and year ended September 30,
2014, associated with certain information technology and related
activities, which were included in SG&A. Additionally,
positive pre-tax adjustments of $0.7 for the quarter and year ended
September 30, 2014, related to the restructuring, were included in
Cost of products sold.
|
2.
|
Basic (loss) earnings
per share is based on the average number of common shares
outstanding during the period. Diluted (loss) earnings per
share is based on the weighted average number of shares used for
the basic (loss) earnings per share calculation, adjusted for the
dilutive effect of stock options and restricted stock equivalents
("RSEs"). For the quarter and year ended September 30, 2015,
GAAP (loss) earnings per share is calculated using basic weighted
average shares outstanding due to the reported net loss.
|
|
|
|
The following tables
provide a reconciliation of net (loss) earnings and net (loss)
earnings per diluted share ("EPS") to adjusted net earnings and
adjusted net earnings per diluted share, which are Non-GAAP
measures.
|
|
|
Quarter Ended
September 30,
|
|
|
Net (Loss)
Earnings
|
|
Diluted
EPS
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net (Loss)
Earnings from Continuing Operations and Diluted EPS - GAAP
(Unaudited) (1)
|
|
$
|
(193.7)
|
|
|
$
|
18.5
|
|
|
$
|
(3.15)
|
|
|
$
|
0.30
|
|
Impacts, net of
tax: Expense (Income) (2)
|
|
|
|
|
|
|
|
|
Impairment charge
|
|
201.1
|
|
|
—
|
|
|
3.25
|
|
|
—
|
|
Spin costs
(3)
|
|
15.2
|
|
|
12.7
|
|
|
0.25
|
|
|
0.20
|
|
2013 restructuring and
related charges, net (4)
|
|
1.7
|
|
|
8.2
|
|
|
0.03
|
|
|
0.13
|
|
Industrial sale
charges
|
|
6.7
|
|
|
—
|
|
|
0.11
|
|
|
—
|
|
Feminine care acquisition
and integration costs
|
|
—
|
|
|
(1.2)
|
|
|
—
|
|
|
(0.02)
|
|
Net pension and
post-retirement curtailment gains
|
|
—
|
|
|
(0.8)
|
|
|
—
|
|
|
(0.01)
|
|
Other realignment and
integration
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Tax on certain spin
costs
|
|
1.4
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
Adjustment to prior years'
tax accruals
|
|
7.1
|
|
|
(8.5)
|
|
|
0.11
|
|
|
(0.14)
|
|
Impact of basic/dilutive
shares (5)
|
|
—
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
Adjusted Net Earnings and Diluted EPS - Non-GAAP
|
|
$
|
39.5
|
|
|
$
|
28.9
|
|
|
$
|
0.64
|
|
|
$
|
0.46
|
|
Weighted average
shares - Basic
|
|
|
|
|
|
61.5
|
|
|
61.8
|
|
Weighted average
shares - Diluted (2)
|
|
|
|
|
|
61.5
|
|
|
62.5
|
|
|
|
(1)
|
GAAP EPS for the
quarter ended September 30, 2015 was calculated using the basic
weighted average shares outstanding due to the reported net
loss.
|
(2)
|
All EPS impacts are
calculated using diluted weighted average shares outstanding.
For the quarter ended September 30, 2015, this reflects the impact
of 0.4 million dilutive RSEs which are excluded from the GAAP EPS
calculation due to the reported net loss.
|
(3)
|
Includes costs of
$15.1 and $12.7 (net of tax) for the quarter ended September 30,
2015 and 2014, respectively, which are included in SG&A.
Additionally, income of $0.1 (net of tax) for the quarter ended
September 30, 2015 were included in Cost of products
sold.
|
(4)
|
Includes costs of
$0.2 (net of tax) for the quarter ended September 30, 2014
associated with certain information technology and related
activities, which are included in SG&A. Additionally,
positive adjustments of $0.6 (net of tax) for the quarter ended
September 30, 2014, related to the restructuring were included in
cost of products sold.
|
(5)
|
Represents the
difference between calculating EPS - Non-GAAP using dilutive
weighted average shares outstanding while calculating EPS - GAAP
using basic weighted average shares outstanding.
|
|
|
Year Ended
September 30,
|
|
|
Net (Loss)
Earnings
|
|
Diluted
EPS
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net (Loss)
Earnings from Continuing Operations and Diluted EPS - GAAP
(Unaudited) (1)
|
|
$
|
(296.1)
|
|
|
$
|
117.8
|
|
|
$
|
(4.78)
|
|
|
$
|
1.88
|
|
Impacts, net of
tax: Expense (Income) (2)
|
|
|
|
|
|
|
|
|
Impairment charge
|
|
201.1
|
|
|
—
|
|
|
3.22
|
|
|
—
|
|
Venezuela deconsolidation
charge
|
|
79.3
|
|
|
—
|
|
|
1.27
|
|
|
—
|
|
Spin costs
(3)
|
|
93.5
|
|
|
15.4
|
|
|
1.50
|
|
|
0.25
|
|
Spin restructuring
charges
|
|
20.1
|
|
|
—
|
|
|
0.32
|
|
|
—
|
|
2013 restructuring and
related charges, net (4)
|
|
16.2
|
|
|
37.1
|
|
|
0.26
|
|
|
0.59
|
|
Industrial sale
charges
|
|
20.5
|
|
|
—
|
|
|
0.33
|
|
|
—
|
|
Feminine care acquisition
and integration costs
|
|
—
|
|
|
6.2
|
|
|
—
|
|
|
0.10
|
|
Acquisition inventory
valuation
|
|
—
|
|
|
5.0
|
|
|
—
|
|
|
0.08
|
|
Net pension and
post-retirement curtailment gains
|
|
—
|
|
|
(0.8)
|
|
|
—
|
|
|
(0.01)
|
|
Cost of early debt
retirements
|
|
37.4
|
|
|
—
|
|
|
0.60
|
|
|
—
|
|
Other realignment and
integration
|
|
—
|
|
|
0.6
|
|
|
—
|
|
|
0.01
|
|
Tax on certain spin
costs
|
|
1.4
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
Adjustment to prior years'
tax accruals
|
|
1.8
|
|
|
(8.7)
|
|
|
0.03
|
|
|
(0.14)
|
|
Impact of basic/dilutive
shares
|
|
—
|
|
|
—
|
|
|
0.03
|
|
|
—
|
|
Adjusted Net Earnings and Diluted EPS - Non-GAAP
|
|
$
|
175.2
|
|
|
$
|
172.6
|
|
|
$
|
2.80
|
|
|
$
|
2.76
|
|
Weighted average
shares - Basic
|
|
|
|
|
|
62.0
|
|
|
62.0
|
|
Weighted average
shares - Diluted (2)
|
|
|
|
|
|
62.0
|
|
|
62.6
|
|
|
|
(1)
|
GAAP EPS for the year
ended September 30, 2015 was calculated using the basic weighted
average shares outstanding due to the reported net loss.
|
(2)
|
All EPS impacts are
calculated using diluted weighted average shares outstanding.
For the year ended September 30, 2015, this reflects the impact of
0.4 million dilutive RSEs which are excluded from the GAAP EPS
calculation due to the reported net loss.
|
(3)
|
Includes costs of
$90.8 and $15.4 (net of tax) for the year ended September 30, 2015
and 2014, respectively, which are included in SG&A.
Additionally, costs of $2.7 (net of tax) for the year ended
September 30, 2015 were included in Cost of products
sold.
|
(4)
|
Includes costs of
$0.2 and $2.9 (net of tax) for the year ended September 30, 2015
and 2014, respectively, associated with certain information
technology and related activities, which are included in
SG&A. Additionally, positive adjustments of $0.6 (net of
tax) for the year ended September 30, 2014, respectively, related
to the restructuring were included in Cost of products
sold.
|
3.
|
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 quarter and year ended
September 30, 2015.
|
Net Sales (In
millions - Unaudited)
|
Quarter Ended
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wet
Shave
|
|
Sun and Skin
Care
|
|
Feminine
Care
|
|
All
Other
|
|
Total
|
|
|
Q4
|
|
%Chg
|
|
Q4
|
|
%Chg
|
|
Q4
|
|
%Chg
|
|
Q4
|
|
%Chg
|
|
Q4
|
|
%Chg
|
Net Sales - Q4
'14
|
|
$
|
419.3
|
|
|
|
|
$
|
68.7
|
|
|
|
|
$
|
117.9
|
|
|
|
|
$
|
48.8
|
|
|
|
|
$
|
654.7
|
|
|
|
Organic
|
|
(21.8)
|
|
|
(5.2)%
|
|
|
(0.2)
|
|
|
(0.3)%
|
|
|
(19.7)
|
|
|
(16.7)%
|
|
|
(4.4)
|
|
|
(9.0)%
|
|
|
(46.1)
|
|
|
(7.0)%
|
|
Change in Venezuela
results
|
|
(5.9)
|
|
|
(1.4)%
|
|
|
—
|
|
|
—%
|
|
|
—
|
|
|
—%
|
|
|
—
|
|
|
—%
|
|
|
(5.9)
|
|
|
(0.9)%
|
|
Impact of
currency
|
|
(33.2)
|
|
|
(7.9)%
|
|
|
(2.7)
|
|
|
(3.9)%
|
|
|
(1.5)
|
|
|
(1.3)%
|
|
|
(1.4)
|
|
|
(2.9)%
|
|
|
(38.8)
|
|
|
(5.9)%
|
|
Incremental impact of
acquisition and sale
|
|
—
|
|
|
—%
|
|
|
—
|
|
|
—%
|
|
|
—
|
|
|
—%
|
|
|
(3.8)
|
|
|
(7.8)%
|
|
|
(3.8)
|
|
|
(0.6)%
|
|
Net Sales - Q4
'15
|
|
$
|
358.4
|
|
|
(14.5)%
|
|
|
$
|
65.8
|
|
|
(4.2)%
|
|
|
$
|
96.7
|
|
|
(18.0)%
|
|
|
$
|
39.2
|
|
|
(19.7)%
|
|
|
$
|
560.1
|
|
|
(14.4)%
|
|
Net Sales (In
millions - Unaudited)
|
Year Ended
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wet
Shave
|
|
Sun and Skin
Care
|
|
Feminine
Care
|
|
All
Other
|
|
Total
|
|
|
Year
Ended
|
|
%Chg
|
|
Year
Ended
|
|
%Chg
|
|
Year
Ended
|
|
%Chg
|
|
Year
Ended
|
|
%Chg
|
|
Year
Ended
|
|
%Chg
|
Net Sales -
FY'14
|
|
$
|
1,585.8
|
|
|
|
|
$
|
424.5
|
|
|
|
|
$
|
404.5
|
|
|
|
|
$
|
197.4
|
|
|
|
|
$
|
2,612.2
|
|
|
|
Organic
|
|
(24.6)
|
|
|
(1.5)%
|
|
|
(6.7)
|
|
|
(1.6)%
|
|
|
(23.4)
|
|
|
(5.8)%
|
|
|
(11.9)
|
|
|
(6.1)%
|
|
|
(66.6)
|
|
|
(2.5)%
|
|
Change in Venezuela
results
|
|
(4.7)
|
|
|
(0.3)%
|
|
|
—
|
|
|
—%
|
|
|
—
|
|
|
—%
|
|
|
—
|
|
|
—%
|
|
|
(4.7)
|
|
|
(0.2)%
|
|
Impact of
currency
|
|
(115.2)
|
|
|
(7.3)%
|
|
|
(14.2)
|
|
|
(3.3)%
|
|
|
(4.3)
|
|
|
(1.1)%
|
|
|
(3.6)
|
|
|
(1.8)%
|
|
|
(137.3)
|
|
|
(5.3)%
|
|
Incremental impact of
acquisition and sale
|
|
—
|
|
|
—%
|
|
|
—
|
|
|
—%
|
|
|
21.4
|
|
|
5.3%
|
|
|
(3.8)
|
|
|
(1.9)%
|
|
|
17.6
|
|
|
0.7%
|
|
Net Sales -
FY'15
|
|
$
|
1,441.3
|
|
|
(9.1)%
|
|
|
$
|
403.6
|
|
|
(4.9)%
|
|
|
$
|
398.2
|
|
|
(1.6)%
|
|
|
$
|
178.1
|
|
|
(9.8)%
|
|
|
$
|
2,421.2
|
|
|
(7.3)%
|
|
Segment Profit (In
millions - Unaudited)
|
Quarter Ended
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wet
Shave
|
|
Sun and Skin
Care
|
|
Feminine
Care
|
|
All
Other
|
|
Total
|
|
|
Q4
|
|
%Chg
|
|
Q4
|
|
%Chg
|
|
Q4
|
|
%Chg
|
|
Q4
|
|
%Chg
|
|
Q4
|
|
%Chg
|
Segment Profit - Q4
'14
|
|
$
|
100.4
|
|
|
|
|
$
|
6.5
|
|
|
|
|
$
|
7.5
|
|
|
|
|
$
|
3.0
|
|
|
|
|
$
|
117.4
|
|
|
|
Organic
|
|
(26.4)
|
|
|
(26.2)%
|
|
|
(1.0)
|
|
|
(15.4)%
|
|
|
(1.1)
|
|
|
(14.6)%
|
|
|
1.2
|
|
|
40.0%
|
|
|
(27.3)
|
|
|
(23.3)%
|
|
Change in Venezuela
results
|
|
(0.4)
|
|
|
(0.4)%
|
|
|
—
|
|
|
—%
|
|
|
—
|
|
|
—%
|
|
|
—
|
|
|
—%
|
|
|
(0.4)
|
|
|
(0.3)%
|
|
Impact of
currency
|
|
(11.6)
|
|
|
(11.6)%
|
|
|
(0.8)
|
|
|
(12.3)%
|
|
|
(1.7)
|
|
|
(22.7)%
|
|
|
1.3
|
|
|
43.3%
|
|
|
(12.8)
|
|
|
(10.9)%
|
|
Segment Profit - Q4
'15
|
|
$
|
62.0
|
|
|
(38.2)%
|
|
|
$
|
4.7
|
|
|
(27.7)%
|
|
|
$
|
4.7
|
|
|
(37.3)%
|
|
|
$
|
5.5
|
|
|
83.3%
|
|
|
$
|
76.9
|
|
|
(34.5)%
|
|
Segment Profit (In
millions - Unaudited)
|
Year Ended
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wet
Shave
|
|
Sun and Skin
Care
|
|
Feminine
Care
|
|
All
Other
|
|
Total
|
|
|
Year
Ended
|
|
%Chg
|
|
Year
Ended
|
|
%Chg
|
|
Year
Ended
|
|
%Chg
|
|
Year
Ended
|
|
%Chg
|
|
Year
Ended
|
|
%Chg
|
Segment Profit -
FY'14
|
|
$
|
388.2
|
|
|
|
|
$
|
73.9
|
|
|
|
|
$
|
51.1
|
|
|
|
|
$
|
17.4
|
|
|
|
|
$
|
530.6
|
|
|
|
Organic
|
|
(35.7)
|
|
|
(9.2)%
|
|
|
0.8
|
|
|
1.1%
|
|
|
(0.6)
|
|
|
(1.2)%
|
|
|
7.0
|
|
|
40.3%
|
|
|
(28.5)
|
|
|
(5.3)%
|
|
Change in Venezuela
results
|
|
1.6
|
|
|
0.4%
|
|
|
—
|
|
|
—%
|
|
|
—
|
|
|
—%
|
|
|
—
|
|
|
—%
|
|
|
1.6
|
|
|
0.3%
|
|
Impact of
currency
|
|
(45.4)
|
|
|
(11.7)%
|
|
|
(3.2)
|
|
|
(4.3)%
|
|
|
(6.3)
|
|
|
(12.3)%
|
|
|
0.2
|
|
|
1.1%
|
|
|
(54.7)
|
|
|
(10.3)%
|
|
Incremental impact of
acquisition
|
|
—
|
|
|
—%
|
|
|
—
|
|
|
—%
|
|
|
4.5
|
|
|
8.8%
|
|
|
—
|
|
|
—%
|
|
|
4.5
|
|
|
0.8%
|
|
Segment Profit -
FY'15
|
|
$
|
308.7
|
|
|
(20.5)%
|
|
|
$
|
71.5
|
|
|
(3.2)%
|
|
|
$
|
48.7
|
|
|
(4.7)%
|
|
|
$
|
24.6
|
|
|
41.4%
|
|
|
$
|
453.5
|
|
|
(14.5)%
|
|
4.
|
The Company reports
financial results on a GAAP and adjusted basis. The table
below is used to reconcile (loss) earnings from continuing
operations before income taxes to EBITDA, Adjusted EBITDA and
Normalized EBITDA which are Non-GAAP measures to improve
comparability of results between periods.
|
|
|
Quarter Ended
September 30
|
|
Year Ended
September 30
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
(Loss) earnings
from continuing operations before income taxes -
GAAP
|
|
$
|
(320.6)
|
|
|
$
|
8.5
|
|
|
$
|
(458.7)
|
|
|
$
|
145.8
|
|
Interest
Expense
|
|
16.4
|
|
|
28.2
|
|
|
159.4
|
|
|
119.0
|
|
Depreciation and
Amortization
|
|
22.3
|
|
|
26.8
|
|
|
91.1
|
|
|
101.4
|
|
EBITDA
|
|
$
|
(281.9)
|
|
|
$
|
63.5
|
|
|
$
|
(208.2)
|
|
|
$
|
366.2
|
|
|
|
|
|
|
|
|
|
|
Impairment
charge
|
|
318.2
|
|
|
—
|
|
|
318.2
|
|
|
—
|
|
Venezuela
deconsolidation
|
|
—
|
|
|
—
|
|
|
79.3
|
|
|
—
|
|
Spin restructuring
charges
|
|
—
|
|
|
—
|
|
|
28.3
|
|
|
—
|
|
Spin costs
|
|
30.3
|
|
|
20.2
|
|
|
142.0
|
|
|
24.4
|
|
2013 restructuring
and related costs
|
|
5.6
|
|
|
11.8
|
|
|
22.4
|
|
|
52.9
|
|
Industrial sale
charges
|
|
10.8
|
|
|
—
|
|
|
32.7
|
|
|
—
|
|
Feminine care
acquisition and integrations costs
|
|
—
|
|
|
2.0
|
|
|
—
|
|
|
9.5
|
|
Acquisition inventory
valuation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8.0
|
|
Net
pension/post-retirement gains
|
|
—
|
|
|
(1.1)
|
|
|
—
|
|
|
(1.1)
|
|
ASR transaction
costs/integration
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
Adjusted EBITDA
(1)
|
|
$
|
83.0
|
|
|
$
|
96.4
|
|
|
$
|
414.7
|
|
|
$
|
460.9
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses (2)
|
|
—
|
|
|
13.9
|
|
|
47.5
|
|
|
63.5
|
|
|
|
|
|
|
|
|
|
|
Normalized
EBITDA
|
|
$
|
83.0
|
|
|
$
|
110.3
|
|
|
$
|
462.2
|
|
|
$
|
524.4
|
|
|
|
(1)
|
Historical adjusted
EBITDA results on a continuing operations basis include costs
associated with supporting the Household Product business that are
not eligible to be reported in discontinued operations which affect
corporate SG&A expenses. As such, both EBITDA and
adjusted EBITDA this quarter and this fiscal year are not
comparable to the prior year, and will not be comparable
year-over-year as we move through each of the first three quarters
of fiscal 2016.
|
(2)
|
Corporate SG&A
expenses have been adjusted to reflect an estimated full year
run-rate of $74 in fiscal 2015, $88 in fiscal 2014, and $24.6 in
the fourth quarter of 2014.
|
5.
|
On March 31, 2015,
the Company deconsolidated its Venezuelan subsidiaries.
Included in consolidated results of operations, and reflected
below, are the historical results of our Venezuela operations
through the quarter ended March 31, 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
|
|
Fiscal
2014
|
$6.9
|
$8.3
|
$7.6
|
$5.9
|
$28.7
|
|
|
|
|
|
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
|
Wet Shave - Segment
Profit
|
Fiscal
2015
|
$3.3
|
$6.0
|
—
|
—
|
$9.3
|
|
Fiscal
2014
|
$2.4
|
$2.7
|
$2.3
|
$0.4
|
$7.8
|
6.
|
The sale of the
Industrial Blade business was completed in September 2015.
The historical results of the Industrial Blade business are
included in consolidated results of operations through September
30, 2015. Reflected below are the net sales for the
Industrial Blade 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
|
|
Fiscal
2014
|
$10.3
|
$11.7
|
$11.8
|
$11.6
|
$45.4
|
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SOURCE Edgewell Personal Care Company