Prestige Consumer Healthcare Inc. Reports Fiscal 2021 Fourth Quarter and Record Full-Year Results
Prestige Consumer Healthcare (PBH) reported strong fiscal 2021 results, exceeding guidance with revenue of $943.4 million and record diluted earnings per share (EPS) of $3.25. In Q4, revenues were $237.8 million, down 5.4% year-over-year, while net income was $35.5 million. The company generated $213.4 million in adjusted free cash flow and provided a positive outlook for fiscal 2022, forecasting revenues of $957 to $962 million and adjusted EPS of $3.58 or more.
- Exceeding fiscal 2021 revenue and EPS guidance.
- Record diluted EPS of $3.25 for fiscal 2021.
- Generated record adjusted free cash flow of $213.4 million.
- Q4 revenue decreased by 5.4% year-over-year to $237.8 million.
- Overall fiscal 2021 revenue decreased by 2.0% compared to fiscal 2020.
- Company Exceeds Full Year 2021 Guidance for Revenue, Adjusted EPS and Free Cash Flow
- Revenue was
$237.8 Million in Q4 and$943.4 in Full-Year Fiscal 2021 - Record Diluted EPS of
$3.25 for Full-Year Fiscal 2021 - Net Cash Provided by Operating Activities for Fiscal 2021 of
$235.6 million and Record Adjusted Free Cash Flow of$213.4 Million in Full-Year Fiscal 2021 - Provides Full-Year Fiscal 2022 Outlook for Revenue and Earnings Per Share of
$957 t o$962 Million and$3.58 or More, Respectively
TARRYTOWN, N.Y., May 06, 2021 (GLOBE NEWSWIRE) -- Prestige Consumer Healthcare Inc. (NYSE:PBH) today reported financial results for its fourth quarter and fiscal year ended March 31, 2021.
“We exceeded full year 2021 guidance by generating solid earnings and cash flow growth along with market share gains. This performance is a testament to our proven business strategy and the benefits of our leading and diverse portfolio of brands, especially against the backdrop of the unique pandemic business environment that disrupted several of our categories in fiscal 2021. We expect our business attributes to continue to create value in the upcoming fiscal year as we anticipate returning to sales growth and continue to leverage our strong free cash flow to execute our capital allocation strategy,” said Ron Lombardi, Chief Executive Officer of Prestige Consumer Healthcare.
Fourth Fiscal Quarter Ended March 31, 2021
Reported revenues in the fourth quarter of fiscal 2021 decreased
Reported net income for the fourth quarter of fiscal 2021 totaled
The adjustment of net income in the fourth quarter fiscal 2021 includes a loss on extinguishment of debt and the related income tax effects. Adjustments to net income in the fourth quarter of fiscal 2020 included costs associated with a new logistics provider and location and the related income tax effects of the adjustment.
Fiscal Year Ended March 31, 2021
Reported revenues for fiscal 2021 totaled
Reported net income for fiscal 2021 totaled
The adjustments to net income in fiscal 2021 related to the final regulations issued during the second fiscal quarter for certain tax elements imposed under the domestic Tax Cuts and Jobs Act, which resulted in a one-time discrete benefit associated with the utilization of foreign tax credits, as well as a loss on extinguishment of debt and the related income tax effects of the adjustments.
Adjustments to net income in fiscal 2020 included costs associated with a new logistics provider and location as well as a loss on extinguishment of debt, and the related income tax effects of each adjustment.
Free Cash Flow and Balance Sheet
The Company's net cash provided by operating activities for fourth quarter fiscal 2021 was
The Company's net debt position as of March 31, 2021 was approximately
Segment Review
North American OTC Healthcare: Segment revenues of
For fiscal year 2021, reported revenues for the North American OTC Healthcare segment of
International OTC Healthcare: Segment fiscal fourth quarter 2021 revenues totaled
For fiscal year 2021, reported revenues for the International OTC Healthcare segment were
Commentary and Outlook for Fiscal 2022
Ron Lombardi, Chief Executive Officer, stated, “A year ago, we entered fiscal 2021 with a backdrop of uncertainty prevalent across the economy due to many factors resulting from COVID-19. Our time-tested business attributes and strategy worked to our favor: leading #1 market share brand positions, agile marketing ability, a diversified brand portfolio, and a robust eCommerce strategy, among many others – all helping to generate continued market share gains. This enabled solid fiscal year financial results and we expect to benefit once again from these attributes in fiscal 2022 and beyond.”
He continued, “In fiscal 2022, we expect organic growth to track in-line with our long-term expectations for our leading brand portfolio, except for certain COVID-disrupted categories, where we anticipate stable performance versus FY21 levels. Meanwhile, we anticipate our solid financial profile to enable cash flow growth in fiscal ’22 and strong low-double-digit earnings growth. This financial outlook will continue to fuel our disciplined capital allocation strategy of continued debt reduction, enabling us to focus on long-term top- and bottom-line growth prospects,” Mr. Lombardi concluded.
Fiscal 2022 Full-Year Outlook | |
Revenue | |
Organic Growth | |
Adjusted E.P.S. | |
Free Cash Flow |
Fiscal Fourth Quarter and Full-Year 2021 Conference Call, Accompanying Slide Presentation and Replay
The Company will host a conference call to review its fourth quarter and full-year results today, May 6, 2021 at 8:30 a.m. ET. The toll-free dial-in numbers are 844-233-9440 for the U.S. & Canada and 574-990-1016 internationally. The conference ID number is 5996287. The Company provides a live Internet webcast, a slide presentation to accompany the call, as well as an archived replay, all of which can be accessed from the Investor Relations page of the Company's website at www.prestigeconsumerhealthcare.com. The slide presentation can be accessed from the Investor Relations page of the website by clicking on Webcasts and Presentations.
Telephonic replays will be available for approximately one week following the completion of the call and can be accessed at 855-859-2056 within North America and at 404-537-3406 from outside North America. The conference ID is 5996287.
Non-GAAP and Other Financial Information
In addition to financial results reported in accordance with generally accepted accounting principles (GAAP), we have provided certain non-GAAP financial information in this release to aid investors in understanding the Company's performance. Each non-GAAP financial measure is defined and reconciled to its most closely related GAAP financial measure in the “About Non-GAAP Financial Measures” section at the end of this earnings release.
Note Regarding Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of the federal securities laws that are intended to qualify for the Safe Harbor from liability established by the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" generally can be identified by the use of forward-looking terminology such as "guidance," "strategy," "outlook," "projection," "may," "will," "would," "expect," "anticipate," "believe”, "enables," or "continue" (or the negative or other derivatives of each of these terms) or similar terminology. The "forward-looking statements" include, without limitation, statements regarding the Company's future operating results including revenues, organic growth, adjusted earnings per share, and free cash flow, the Company’s ability to execute on its capital allocation strategy and reduce debt, and the Company’s ability to create long-term value for stakeholders. These statements are based on management's estimates and assumptions with respect to future events and financial performance and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results could differ materially from those expected as a result of a variety of factors, including the impact of the COVID-19 pandemic and business and economic conditions, consumer trends, the impact of the Company’s advertising and promotional and new product development initiatives, customer inventory management initiatives, fluctuating foreign exchange rates, competitive pressures, and the ability of the Company’s third party manufacturers and logistics providers and suppliers to meet demand for its products and to reduce costs. A discussion of other factors that could cause results to vary is included in the Company's Annual Report on Form 10-K for the year ended March 31, 2020 and other periodic reports filed with the Securities and Exchange Commission.
About Prestige Consumer Healthcare Inc.
Prestige Consumer Healthcare markets, sells, manufactures and distributes consumer healthcare products to retail outlets throughout the U.S. and Canada, Australia, and in certain other international markets. The Company’s diverse portfolio of brands include Monistat® and Summer’s Eve® women's health products, BC® and Goody's® pain relievers, Clear Eyes® eye care products, DenTek® specialty oral care products, Dramamine® motion sickness treatments, Fleet® enemas and glycerin suppositories, Chloraseptic® and Luden's® sore throat treatments and drops, Compound W® wart treatments, Little Remedies® pediatric over-the-counter products, Boudreaux’s Butt Paste® diaper rash ointments, Nix® lice treatment, Debrox® earwax remover, Gaviscon® antacid in Canada, and Hydralyte® rehydration products and the Fess® line of nasal and sinus care products in Australia. Visit the Company's website at www.prestigeconsumerhealthcare.com.
Prestige Consumer Healthcare Inc.
Consolidated Statement of Income and Comprehensive Income
(Unaudited)
Three Months Ended March 31, | Year Ended March 31, | |||||||||||||||||||
(In thousands, except per share data) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||
Total Revenues | 237,761 | 251,235 | 943,365 | 963,010 | ||||||||||||||||
Cost of Sales | ||||||||||||||||||||
Cost of sales excluding depreciation | 99,047 | 106,236 | 389,670 | 406,554 | ||||||||||||||||
Cost of sales depreciation | 1,658 | 1,089 | 6,223 | 4,233 | ||||||||||||||||
Cost of sales | 100,705 | 107,325 | 395,893 | 410,787 | ||||||||||||||||
Gross profit | 137,056 | 143,910 | 547,472 | 552,223 | ||||||||||||||||
Operating Expenses | ||||||||||||||||||||
Advertising and marketing | 36,417 | 40,167 | 140,589 | 147,194 | ||||||||||||||||
General and administrative | 23,823 | 23,584 | 85,540 | 89,112 | ||||||||||||||||
Depreciation and amortization | 5,879 | 6,242 | 23,941 | 24,762 | ||||||||||||||||
Total operating expenses | 66,119 | 69,993 | 250,070 | 261,068 | ||||||||||||||||
Operating income | 70,937 | 73,917 | 297,402 | 291,155 | ||||||||||||||||
Other (income) expense | ||||||||||||||||||||
Interest expense, net | 18,983 | 22,452 | 82,328 | 96,224 | ||||||||||||||||
Loss on extinguishment of debt | 12,327 | — | 12,327 | 2,155 | ||||||||||||||||
Other (income) expense, net | (746 | ) | 930 | (1,366 | ) | 1,625 | ||||||||||||||
Total other expense, net | 30,564 | 23,382 | 93,289 | 100,004 | ||||||||||||||||
Income before income taxes | 40,373 | 50,535 | 204,113 | 191,151 | ||||||||||||||||
Provision for income taxes | 4,859 | 13,489 | 39,431 | 48,870 | ||||||||||||||||
Net income | $ | 35,514 | $ | 37,046 | $ | 164,682 | $ | 142,281 | ||||||||||||
Earnings per share: | ||||||||||||||||||||
Basic | $ | 0.71 | $ | 0.74 | $ | 3.28 | $ | 2.81 | ||||||||||||
Diluted | $ | 0.70 | $ | 0.73 | $ | 3.25 | $ | 2.78 | ||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||
Basic | 50,031 | 50,367 | 50,210 | 50,723 | ||||||||||||||||
Diluted | 50,512 | 50,878 | 50,605 | 51,140 | ||||||||||||||||
Comprehensive income, net of tax: | ||||||||||||||||||||
Currency translation adjustments | (2,106 | ) | (12,052 | ) | 20,333 | (12,363 | ) | |||||||||||||
Unrealized gain (loss) on interest rate swaps | 698 | (4,864 | ) | 3,045 | (4,864 | ) | ||||||||||||||
Unrecognized net (loss) gain on pension plans | (1,162 | ) | (1,187 | ) | 1,172 | (1,187 | ) | |||||||||||||
Net gain on pension distribution reclassified to net income | — | — | (190 | ) | — | |||||||||||||||
Total other comprehensive (loss) income | (2,570 | ) | (18,103 | ) | 24,360 | (18,414 | ) | |||||||||||||
Comprehensive income | $ | 32,944 | $ | 18,943 | $ | 189,042 | $ | 123,867 |
Prestige Consumer Healthcare Inc.
Consolidated Balance Sheet
(Unaudited)
(In thousands) | March 31, | ||||||||
2021 | 2020 | ||||||||
Assets | |||||||||
Current assets | |||||||||
Cash and cash equivalents | $ | 32,302 | $ | 94,760 | |||||
Accounts receivable, net of allowance of | 114,671 | 150,517 | |||||||
Inventories | 114,959 | 116,026 | |||||||
Prepaid expenses and other current assets | 7,903 | 4,351 | |||||||
Total current assets | 269,835 | 365,654 | |||||||
Property, plant and equipment, net | 70,059 | 55,988 | |||||||
Operating lease right-of-use assets | 23,722 | 28,888 | |||||||
Finance lease right-of-use assets, net | 8,986 | 5,842 | |||||||
Goodwill | 578,079 | 575,179 | |||||||
Intangible assets, net | 2,475,729 | 2,479,391 | |||||||
Other long-term assets | 2,863 | 2,963 | |||||||
Total Assets | $ | 3,429,273 | $ | 3,513,905 | |||||
Liabilities and Stockholders' Equity | |||||||||
Current liabilities | |||||||||
Accounts payable | $ | 45,978 | $ | 62,375 | |||||
Accrued interest payable | 6,312 | 9,911 | |||||||
Operating lease liabilities, current portion | 5,858 | 5,612 | |||||||
Finance lease liabilities, current portion | 2,588 | 1,220 | |||||||
Other accrued liabilities | 61,402 | 70,763 | |||||||
Total current liabilities | 122,138 | 149,881 | |||||||
Long-term debt, net | 1,479,653 | 1,730,300 | |||||||
Deferred income tax liabilities | 434,050 | 407,812 | |||||||
Long-term operating lease liabilities, net of current portion | 19,706 | 24,877 | |||||||
Long-term finance lease liabilities, net of current portion | 6,816 | 4,626 | |||||||
Other long-term liabilities | 8,612 | 25,438 | |||||||
Total Liabilities | 2,070,975 | 2,342,934 | |||||||
Stockholders' Equity | |||||||||
Preferred stock - | |||||||||
Authorized - 5,000 shares | |||||||||
Issued and outstanding - None | — | — | |||||||
Common stock - | |||||||||
Authorized - 250,000 shares | |||||||||
Issued – 53,999 shares at March 31, 2021 and 53,805 shares at March 31, 2020 | 540 | 538 | |||||||
Additional paid-in capital | 499,508 | 488,116 | |||||||
Treasury stock, at cost – 4,088 shares at March 31, 2021 and 3,719 at March 31, 2020 | (130,732 | ) | (117,623 | ) | |||||
Accumulated other comprehensive loss, net of tax | (19,801 | ) | (44,161 | ) | |||||
Retained earnings | 1,008,783 | 844,101 | |||||||
Total Stockholders' Equity | 1,358,298 | 1,170,971 | |||||||
Total Liabilities and Stockholders' Equity | $ | 3,429,273 | $ | 3,513,905 |
Prestige Consumer Healthcare Inc.
Consolidated Statement of Cash Flows
(Unaudited)
Year Ended March 31, | |||||||||
(In thousands) | 2021 | 2020 | |||||||
Operating Activities | |||||||||
Net income | $ | 164,682 | $ | 142,281 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
Depreciation and amortization | 30,164 | 28,995 | |||||||
Loss on sale or disposal of property and equipment | 220 | 713 | |||||||
Deferred income taxes | 18,628 | 13,852 | |||||||
Amortization of debt origination costs | 4,979 | 3,812 | |||||||
Stock-based compensation costs | 8,543 | 7,644 | |||||||
Loss on extinguishment of debt | 12,327 | 2,155 | |||||||
Non-cash operating lease cost | 7,082 | 8,786 | |||||||
Impairment loss | 2,434 | — | |||||||
Other | (7,854 | ) | 84 | ||||||
Changes in operating assets and liabilities: | |||||||||
Accounts receivable | 36,872 | (2,849 | ) | ||||||
Inventories | 2,972 | 2,930 | |||||||
Prepaid expenses and other current assets | (3,227 | ) | 687 | ||||||
Accounts payable | (17,342 | ) | 6,210 | ||||||
Accrued liabilities | (14,912 | ) | 12,096 | ||||||
Operating lease liabilities | (6,718 | ) | (8,824 | ) | |||||
Other | (3,243 | ) | (1,448 | ) | |||||
Net cash provided by operating activities | 235,607 | 217,124 | |||||||
Investing Activities | |||||||||
Purchases of property, plant and equipment | (22,243 | ) | (14,560 | ) | |||||
Escrow receipt | — | 750 | |||||||
Acquisition of tradename | — | (2,760 | ) | ||||||
Net cash used in investing activities | (22,243 | ) | (16,570 | ) | |||||
Financing Activities | |||||||||
Proceeds from issuance of senior notes | 600,000 | 400,000 | |||||||
Repayment of senior notes | (600,000 | ) | (400,000 | ) | |||||
Term Loan repayments | (195,000 | ) | (48,000 | ) | |||||
Borrowings under revolving credit agreement | 15,000 | 100,000 | |||||||
Repayments under revolving credit agreement | (70,000 | ) | (120,000 | ) | |||||
Payment of debt costs | (17,718 | ) | (6,584 | ) | |||||
Payments of finance leases | (1,443 | ) | (476 | ) | |||||
Proceeds from exercise of stock options | 2,851 | 1,324 | |||||||
Fair value of shares surrendered as payment of tax withholding | (1,242 | ) | (974 | ) | |||||
Repurchase of common stock | (11,867 | ) | (56,721 | ) | |||||
Net cash used in financing activities | (279,419 | ) | (131,431 | ) | |||||
Effects of exchange rate changes on cash and cash equivalents | 3,597 | (1,893 | ) | ||||||
(Decrease) increase in cash and cash equivalents | (62,458 | ) | 67,230 | ||||||
Cash and cash equivalents - beginning of year | 94,760 | 27,530 | |||||||
Cash and cash equivalents - end of year | $ | 32,302 | $ | 94,760 | |||||
Interest paid | $ | 80,290 | $ | 92,166 | |||||
Income taxes paid | $ | 34,381 | $ | 30,602 |
Prestige Consumer Healthcare Inc.
Consolidated Statement of Income
Business Segments
(Unaudited)
Three Months Ended March 31, 2021 | |||||||||||
(In thousands) | North American OTC Healthcare | International OTC Healthcare | Consolidated | ||||||||
Total segment revenues* | $ | 211,468 | $ | 26,293 | $ | 237,761 | |||||
Cost of sales | 91,321 | 9,384 | 100,705 | ||||||||
Gross profit | 120,147 | 16,909 | 137,056 | ||||||||
Advertising and marketing | 31,304 | 5,113 | 36,417 | ||||||||
Contribution margin | $ | 88,843 | $ | 11,796 | 100,639 | ||||||
Other operating expenses | 29,702 | ||||||||||
Operating income | $ | 70,937 |
*Intersegment revenues of
Year Ended March 31, 2021 | |||||||||||
(In thousands) | North American OTC Healthcare | International OTC Healthcare | Consolidated | ||||||||
Total segment revenues* | $ | 849,319 | $ | 94,046 | $ | 943,365 | |||||
Cost of sales | 359,100 | 36,793 | 395,893 | ||||||||
Gross profit | 490,219 | 57,253 | 547,472 | ||||||||
Advertising and marketing | 122,857 | 17,732 | 140,589 | ||||||||
Contribution margin | $ | 367,362 | $ | 39,521 | 406,883 | ||||||
Other operating expenses | 109,481 | ||||||||||
Operating income | $ | 297,402 |
*Intersegment revenues of
Three Months Ended March 31, 2020 | |||||||||||
(In thousands) | North American OTC Healthcare | International OTC Healthcare | Consolidated | ||||||||
Total segment revenues* | $ | 219,814 | $ | 31,421 | $ | 251,235 | |||||
Cost of sales | 96,454 | 10,871 | 107,325 | ||||||||
Gross profit | 123,360 | 20,550 | 143,910 | ||||||||
Advertising and marketing | 33,338 | 6,829 | 40,167 | ||||||||
Contribution margin | $ | 90,022 | $ | 13,721 | 103,743 | ||||||
Other operating expenses | 29,826 | ||||||||||
Operating income | $ | 73,917 |
*Intersegment revenues of
Year Ended March 31, 2020 | |||||||||||
(In thousands) | North American OTC Healthcare | International OTC Healthcare | Consolidated | ||||||||
Total segment revenues* | $ | 859,368 | $ | 103,642 | $ | 963,010 | |||||
Cost of sales | 372,133 | 38,654 | 410,787 | ||||||||
Gross profit | 487,235 | 64,988 | 552,223 | ||||||||
Advertising and marketing | 127,972 | 19,222 | 147,194 | ||||||||
Contribution margin | $ | 359,263 | $ | 45,766 | 405,029 | ||||||
Other operating expenses | 113,874 | ||||||||||
Operating income | $ | 291,155 |
* Intersegment revenues of
About Non-GAAP Financial Measures
In addition to financial results reported in accordance with GAAP, we disclose certain Non-GAAP financial measures ("NGFMs"), including, but not limited to, Non-GAAP Organic Revenues, Non-GAAP Organic Revenue Change Percentage, Non-GAAP Adjusted Gross Margin, Non-GAAP Adjusted Gross Margin Percentage, Non-GAAP EBITDA, Non-GAAP EBITDA Margin, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted EBITDA Margin, Non-GAAP Adjusted Net Income, Non-GAAP Adjusted EPS, Non-GAAP Free Cash Flow, Non-GAAP Adjusted Free Cash Flow and Net Debt. We use these NGFMs internally, along with GAAP information, in evaluating our operating performance and in making financial and operational decisions. We believe that the presentation of these NGFMs provides investors with greater transparency, and provides a more complete understanding of our business than could be obtained absent these disclosures, because the supplemental data relating to our financial condition and results of operations provides additional ways to view our operation when considered with both our GAAP results and the reconciliations below. In addition, we believe that the presentation of each of these NGFMs is useful to investors for period-to-period comparisons of results in assessing shareholder value, and we use these NGFMs internally to evaluate the performance of our personnel and also to evaluate our operating performance and compare our performance to that of our competitors.
These NGFMs are not in accordance with GAAP, should not be considered as a measure of profitability or liquidity, and may not be directly comparable to similarly titled NGFMs reported by other companies. These NGFMs have limitations and they should not be considered in isolation from or as an alternative to their most closely related GAAP measures reconciled below. Investors should not rely on any single financial measure when evaluating our business. We recommend investors review the GAAP financial measures included in this earnings release. When viewed in conjunction with our GAAP results and the reconciliations below, we believe these NGFMs provide greater transparency and a more complete understanding of factors affecting our business than GAAP measures alone.
NGFMs Defined
We define our NGFMs presented herein as follows:
- Non-GAAP Organic Revenues: GAAP Total Revenues excluding impact of foreign currency exchange rates in the periods presented.
- Non-GAAP Organic Revenue Change Percentage: Calculated as the change in Non-GAAP Organic Revenues from prior year divided by prior year Non-GAAP Organic Revenues.
- Non-GAAP Adjusted Gross Margin: GAAP Gross Profit minus certain transition and other costs associated with new warehouse.
- Non-GAAP Adjusted Gross Margin Percentage: Calculated as Non-GAAP Adjusted Gross Margin divided by GAAP Total Revenues.
- Non-GAAP EBITDA: GAAP Net Income before interest expense, net, income taxes provision, and depreciation and amortization.
- Non-GAAP EBITDA Margin: Calculated as Non-GAAP EBITDA divided by GAAP Total Revenues.
- Non-GAAP Adjusted EBITDA: Non-GAAP EBITDA less certain transition and other costs associated with new warehouse, loss on disposal of assets and loss on extinguishment of debt.
- Non-GAAP Adjusted EBITDA Margin: Calculated as Non-GAAP Adjusted EBITDA divided by GAAP Total Revenues.
- Non-GAAP Adjusted Net Income: GAAP Net Income before certain transition and other costs associated with new warehouse, loss on disposal of assets, loss on extinguishment of debt, tax impact of adjustments, and normalized tax rate adjustment.
- Non-GAAP Adjusted EPS: Calculated as Non-GAAP Adjusted Net Income, divided by the weighted average number of common and potential common shares outstanding during the period.
- Non-GAAP Free Cash Flow: GAAP Net cash provided by operating activities less cash paid for capital expenditures.
- Non-GAAP Adjusted Free Cash Flow: Non-GAAP Free Cash Flow plus cash payments made for transition and other costs associated with new warehouse.
- Net Debt: Calculated as total principal amount of debt outstanding (
$1,495,000 at March 31, 2021 and$1,745,000 at March 31, 2020) less cash and cash equivalents ($32,302 at March 31, 2021 and$94,760 at March 31, 2020). Amounts in thousands.
The following tables set forth the reconciliations of each of our NGFMs to their most directly comparable financial measures presented in accordance with GAAP.
Reconciliation of GAAP Total Revenues to Non-GAAP Organic Revenues and related Non-GAAP Organic Revenue Change percentage:
Three Months Ended March 31, | Year Ended March 31, | ||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||
(In thousands) | |||||||||||||||||||
GAAP Total Revenues | $ | 237,761 | $ | 251,235 | $ | 943,365 | $ | 963,010 | |||||||||||
Revenue Change | (5.4 | )% | (2.0 | )% | |||||||||||||||
Adjustments: | |||||||||||||||||||
Impact of foreign currency exchange rates | — | 3,404 | — | 3,796 | |||||||||||||||
Total adjustments | — | 3,404 | — | 3,796 | |||||||||||||||
Non-GAAP Organic Revenues | $ | 237,761 | $ | 254,639 | $ | 943,365 | $ | 966,806 | |||||||||||
Non-GAAP Organic Revenue Change | (6.6 | )% | (2.4 | )% |
Reconciliation of GAAP Gross Profit to Non-GAAP Adjusted Gross Margin and related Non-GAAP Adjusted Gross Margin percentage:
Three Months Ended March 31, | Year Ended March 31, | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
(In thousands) | |||||||||||||||
GAAP Total Revenues | $ | 237,761 | $ | 251,235 | $ | 943,365 | $ | 963,010 | |||||||
GAAP Gross Profit | $ | 137,056 | $ | 143,910 | $ | 547,472 | $ | 552,223 | |||||||
GAAP Gross Profit as a Percentage of GAAP Total Revenue | 57.6 | % | 57.3 | % | 58.0 | % | 57.3 | % | |||||||
Adjustments: | |||||||||||||||
Transition and other costs associated with new warehouse(1) | — | 5,208 | — | 9,170 | |||||||||||
Total adjustments | — | 5,208 | — | 9,170 | |||||||||||
Non-GAAP Adjusted Gross Margin | $ | 137,056 | $ | 149,118 | $ | 547,472 | $ | 561,393 | |||||||
Non-GAAP Adjusted Gross Margin as a Percentage of GAAP Total Revenues | 57.6 | % | 59.4 | % | 58.0 | % | 58.3 | % |
(1) Items related to new warehouse represent costs to transition to the new warehouse and duplicate costs incurred during the transition.
Reconciliation of GAAP Net Income to Non-GAAP EBITDA and related Non-GAAP EBITDA Margin, Non-GAAP Adjusted EBITDA and related Non-GAAP Adjusted EBITDA Margin:
Three Months Ended March 31, | Year Ended March 31, | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
(In thousands) | |||||||||||||||
GAAP Net Income | $ | 35,514 | $ | 37,046 | $ | 164,682 | $ | 142,281 | |||||||
Interest expense, net | 18,983 | 22,452 | 82,328 | 96,224 | |||||||||||
Provision for income taxes | 4,859 | 13,489 | 39,431 | 48,870 | |||||||||||
Depreciation and amortization | 7,537 | 7,331 | 30,164 | 28,995 | |||||||||||
Non-GAAP EBITDA | 66,893 | 80,318 | 316,605 | 316,370 | |||||||||||
Non-GAAP EBITDA Margin | 28.1 | % | 32.0 | % | 33.6 | % | 32.9 | % | |||||||
Adjustments: | |||||||||||||||
Transition and other costs associated with new warehouse in Cost of Goods Sold(1) | — | 5,208 | — | 9,170 | |||||||||||
Loss on disposal of assets | — | 382 | — | 382 | |||||||||||
Loss on extinguishment of debt | 12,327 | — | 12,327 | 2,155 | |||||||||||
Total adjustments | 12,327 | 5,590 | 12,327 | 11,707 | |||||||||||
Non-GAAP Adjusted EBITDA | $ | 79,220 | $ | 85,908 | $ | 328,932 | $ | 328,077 | |||||||
Non-GAAP Adjusted EBITDA Margin | 33.3 | % | 34.2 | % | 34.9 | % | 34.1 | % |
(1) Items related to new warehouse represent costs to transition to the new warehouse and duplicate costs incurred during the transition.
Reconciliation of GAAP Net Income and GAAP Diluted Earnings Per Share to Non-GAAP Adjusted Net Income and related Non-GAAP Adjusted Earnings Per Share:
Three Months Ended March 31, | Year Ended March 31, | |||||||||||||||||||||||||||||||||
2021 | 2021 Adjusted EPS | 2020 | 2020 Adjusted EPS | 2021 | 2021 Adjusted EPS | 2020 | 2020 Adjusted EPS | |||||||||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||||||||||||||||
GAAP Net Income and Diluted EPS | $ | 35,514 | $ | 0.70 | $ | 37,046 | $ | 0.73 | $ | 164,682 | $ | 3.25 | $ | 142,281 | $ | 2.78 | ||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||
Transition and other costs associated with new warehouse in Cost of Goods Sold(1) | — | — | 5,208 | 0.10 | — | — | 9,170 | 0.18 | ||||||||||||||||||||||||||
Loss on disposal of assets | — | — | 382 | 0.01 | — | — | 382 | 0.01 | ||||||||||||||||||||||||||
Loss on extinguishment of debt | 12,327 | 0.24 | — | — | 12,327 | 0.24 | 2,155 | 0.04 | ||||||||||||||||||||||||||
Tax impact of adjustments(2) | (2,986 | ) | (0.06 | ) | (1,420 | ) | (0.03 | ) | (2,986 | ) | (0.06 | ) | (2,974 | ) | (0.06 | ) | ||||||||||||||||||
Normalized tax rate adjustment(3) | (4,919 | ) | (0.10 | ) | 653 | 0.01 | (10,025 | ) | (0.20 | ) | 318 | 0.01 | ||||||||||||||||||||||
Total adjustments | 4,422 | 0.09 | 4,823 | 0.09 | (684 | ) | (0.01 | ) | 9,051 | 0.18 | ||||||||||||||||||||||||
Non-GAAP Adjusted Net Income and Adjusted EPS | $ | 39,936 | $ | 0.79 | $ | 41,869 | $ | 0.82 | $ | 163,998 | $ | 3.24 | $ | 151,332 | $ | 2.96 |
Note: Amounts may not add due to rounding.
(1) Items related to new warehouse represent costs to transition to the new warehouse and duplicate costs incurred during the transition.
(2) The income tax adjustments are determined using applicable rates in the taxing jurisdictions in which the above adjustments relate and includes both current and deferred income tax expense (benefit) based on the specific nature of the specific Non-GAAP performance measure.
(3) Income tax adjustment to adjust for discrete income tax items.
Reconciliation of GAAP Net Income to Non-GAAP Free Cash Flow and Non-GAAP Adjusted Free Cash Flow:
Three Months Ended March 31, | Year Ended March 31, | |||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||
(In thousands) | ||||||||||||||||||
GAAP Net Income | $ | 35,514 | $ | 37,046 | $ | 164,682 | $ | 142,281 | ||||||||||
Adjustments: | ||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities as shown in the Statement of Cash Flows | 29,904 | 20,056 | 76,523 | 66,041 | ||||||||||||||
Changes in operating assets and liabilities as shown in the Statement of Cash Flows | (6,331 | ) | (976 | ) | (5,598 | ) | 8,802 | |||||||||||
Total adjustments | 23,573 | 19,080 | 70,925 | 74,843 | ||||||||||||||
GAAP Net cash provided by operating activities | 59,087 | 56,126 | 235,607 | 217,124 | ||||||||||||||
Purchases of property and equipment | (4,896 | ) | (5,505 | ) | (22,243 | ) | (14,560 | ) | ||||||||||
Non-GAAP Free Cash Flow | 54,191 | 50,621 | 213,364 | 202,564 | ||||||||||||||
Transition and other payments associated with new warehouse(1) | — | 1,876 | — | 4,203 | ||||||||||||||
Non-GAAP Adjusted Free Cash Flow | $ | 54,191 | $ | 52,497 | $ | 213,364 | $ | 206,767 |
(1) Payments related to new warehouse represent costs to transition to the new warehouse and duplicate costs incurred during the transition.
Outlook for Fiscal Year 2022:
Reconciliation of Projected GAAP Net cash provided by operating activities to Projected Non-GAAP Free Cash Flow:
(In millions) | ||||
Projected FY'22 GAAP Net cash provided by operating activities | $ | 240 | ||
Additions to property and equipment for cash | (15 | ) | ||
Projected Non-GAAP Free Cash Flow | $ | 225 |
FAQ
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