Prestige Brands (PBH) Tops Q4 EPS by 1c, Revenues Beat; Affirms FY20 EPS Mid-Point Guidance Below Consensus, Provides FY20 Revenue Outlook, Board Approves New $50M Buyback

Prestige Brands (NYSE: PBH) reported Q4 EPS of $0.72, $0.01 better than the analyst estimate of $0.71. Revenue for the quarter came in at $241 million versus the consensus estimate of $237.22 million.

• Revenue was $241.0 Million in Q4 and $975.8 Million in Full-Year Fiscal 2019
• Organic Revenue Grew 3.2% in Q4 and 0.1% in Fiscal 2019
• Reduced Debt by $200 Million and Repurchased $50 Million of Shares in Fiscal 2019
• Board of Directors Authorizes New $50 Million Share Repurchase Program

“We again executed against our three-pillar strategy in fiscal 2019, delivering solid earnings, cash flow and market share gains. These performance metrics were further enhanced by disciplined capital allocation throughout the year and has us well-positioned for further long-term value creation in both our coming fiscal year and in the future,” said Ron Lombardi, Chief Executive Officer of Prestige Consumer Healthcare.

Share Repurchase Program Authorization

The Company’s Board of Directors authorized the repurchase of up to $50.0 million of the Company’s issued and outstanding common stock. Under the authorization, the Company may purchase common stock through May 2020 utilizing one or more open market transactions, transactions structured through investment banking institutions, in privately-negotiated transactions or otherwise, by direct purchases of common stock or a combination of the foregoing in compliance with the applicable rules and regulations of the Securities and Exchange Commission. The timing of the purchases and the amount of stock repurchased is subject to the Company's discretion and will depend on market and business conditions, applicable legal and credit requirements and other corporate considerations including the Company’s historical strategy of pursuing accretive acquisitions and deleveraging.

GUIDANCE:

Prestige Brands sees FY2020 EPS of $2.76-$2.83, versus the consensus of $2.83. Prestige Brands sees FY2020 revenue of $951-961 million, versus the consensus of $957 million.

Commentary and Outlook for Fiscal 2020

Ron Lombardi, CEO, stated, “For fiscal 2020 we remain focused on executing against our strategy of brand-building, maintaining a strong financial profile and maximizing our capital allocation alternatives to continue to create long-term shareholder value. We anticipate continuing to grow categories and increase market share, a cornerstone to our long-term success as a brand-building company. This growth is expected to be largely offset by continued retailer inventory reduction and consolidation efforts. We therefore expect total organic growth to be approximately flat for fiscal 2020.”

“We expect our consistent financial profile to continue in the upcoming year. In fiscal 2020, we expect profitability to track similar to sales as we continue to lap the divestiture of Household Cleaning in Q1. Our stable financial profile and profit outlook will enable a disciplined capital allocation approach in which we anticipate our primary use of cash being debt reduction and an opportunistic $50 million share repurchase.”

“We continue to benefit from a diverse portfolio of leading brands and retail partners and remain confident in our long-term top- and bottom-line growth prospects,” Mr. Lombardi concluded.

For earnings history and earnings-related data on Prestige Brands (PBH) click here.

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