Prestige Brands (NYSE: PBH) reported Q4 EPS of $0.82, $0.08 better than the analyst estimate of $0.74. Revenue for the quarter came in at $251.2 million versus the consensus estimate of $239.84 million.

• Revenue was $251.2 Million in Q4 and $963.0 Million in Full-Year Fiscal 2020
• Organic Revenue Grew 4.6% in Q4 and 1.3% in Fiscal 2020
• Generated Cash from Operations of $217.1 Million and Adjusted Free Cash Flow of $206.8 Million in Full-Year Fiscal 2020
• Net Debt Reduction of $135.2M in FY20; Proactively Increased Cash Balance to Nearly $100 Million at Fiscal Year-end

“The continued focus on our three-pillar strategy and long-term brand building efforts delivered solid revenue, earnings and cash flow results in Q4 and the full-year Fiscal ’20. In addition to delivering against our objectives for the year, fourth quarter revenue and earnings benefited from a strong level of consumer demand for many of our brands driven by the COVID-19 pandemic late in the quarter. In addition to this, we continued to execute our disciplined capital allocation strategy during the fourth quarter using our strong cash generation primarily to build our cash balance and reduce net debt,” said Ron Lombardi, Chief Executive Officer of Prestige Consumer Healthcare.

“As we enter Fiscal 2021, we anticipate a unique and uncertain business environment. However, our time-tested strategy, leading portfolio of brands and solid financial profile have us well prepared for the extraordinary business environment unfolding. At the forefront, we expect to do all this while protecting the health & safety of our employees, partners and community,” Mr. Lombardi concluded.

GUIDANCE:

Prestige Brands sees Q1 2021 EPS of $0.70, versus the consensus of $0.74. Prestige Brands sees Q1 2021 revenue of $220 million, versus the consensus of $239.84 million.

Commentary and Outlook for Fiscal 2021

Ron Lombardi, CEO, stated, “Late in the fourth quarter fiscal 2020 we saw a sharp rise in consumption trends as consumers “stocked up” on products across our portfolio. In Fiscal Q1 2021 we anticipate this trend will reverse as consumers change their shopping habits as a result of the COVID-19 virus. This reduction will likely be partially offset by higher retailer order patterns as retailers catch up to March’s spike in consumption. We therefore anticipate revenues of approximately $220 million or more in Q1 as of today, although acknowledging that we are in a rapidly changing environment which can affect short and longer-term forecasts with little warning.”

“For Fiscal 2021 we anticipate an uncertain environment due to many factors resulting from COVID-19. As we enter the year there are numerous variables to consider including an uncertain shutdown timeframe for many areas of our economy, likely changes to consumer spending and purchasing habits and other economic factors. Given these unprecedented uncertainties we are refraining from offering full-year guidance at this time.”

“Our Company and business strategy has us well positioned to withstand these challenges. We have a diversified, leading portfolio of brands and nimble business model which enable us to quickly adapt to a changing environment to grow categories and market share over time. Our broad distribution for these leading brands also enables us to reach consumers across channels as they reduce trips to the store and increase shopping online. In addition, the benefits of our financial profile – low cash taxes, minimal capital spending and a comparatively stable margin profile – continue to enable strong cash flow conversion. Last, we continue to operate under a disciplined capital allocation approach featuring meaningful liquidity, long-dated debt maturities and continued debt reduction, which enable us to focus on long-term top- and bottom-line growth prospects.”

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