Prestige Brands Holdings, Inc. (PBH) has reported a 20.42 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $11.09 million, or $0.21 a share in the quarter, compared with $13.94 million, or $0.26 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $28.84 million, or $0.54 a share compared with $27.93 million or $0.52 a share, a year ago.

Revenue during the quarter grew 15.79 percent to $240.67 million from $207.86 million in the previous year period. Gross margin for the quarter contracted 280 basis points over the previous year period to 54.09 percent. Total expenses were 77.96 percent of quarterly revenues, up from 68.60 percent for the same period last year. That has resulted in a contraction of 936 basis points in operating margin to 22.04 percent.

Operating income for the quarter was $53.05 million, compared with $65.27 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $74.87 million compared with $74.24 million in the prior year period. At the same time, adjusted EBITDA margin contracted 461 basis points in the quarter to 31.11 percent from 35.72 percent in the last year period.

"Our solid overall fourth quarter performance was broad-based, benefitting from our diverse product offering, ongoing brand-building investments, and the strategic evolution of our portfolio throughout the fiscal year. Equally important, we closed the acquisition of C.B. Fleet in late January and are on schedule with integrating this well-positioned portfolio of brands into our existing business. This strong momentum positions our business well as we enter into fiscal 2018," said Ron Lombardi, chief executive officer of Prestige Brands.

For financial year 2018, Prestige Brands Holdings, Inc. projects revenue to grow in the range of 18 percent to 20 percent. The company forecasts diluted earnings per share to be in the range of $2.50 to $2.60 and forecasts diluted earnings per share to be in the range of $2.58 to $2.68 on adjusted basis.

The company has spent $694.60 million cash to meet investing activities during the year as against cash outgo of $222.97 million in the last year. It has incurred net capital expenditure of $2.89 million on net basis during the year, down 10.30 percent or $0.33 million from year ago.

Cash flow from financing activities was $561.86 million for the year, up 939.78 percent or $507.82 million, when compared with the last year.

Cash and cash equivalents stood at $41.86 million as on Mar. 31, 2017, up 53.71 percent or $14.62 million from $27.23 million on Mar. 31, 2016.

Debt increases substantially
Prestige Brands Holdings, Inc. has witnessed an increase in total debt over the last one year. It stood at $2,193.73 million as on Mar. 31, 2017, up 34.97 percent or $568.42 million from $1,625.31 million on Mar. 31, 2016. Prestige Brands Holdings, Inc. has witnessed an increase in long-term debt over the last one year. It stood at $2,193.73 million as on Mar. 31, 2017, up 34.97 percent or $568.42 million from $1,625.31 million on Mar. 31, 2016. Interest coverage ratio deteriorated to 1.61 for the quarter from 2.81 for the same period last year.