Prestige Brands Holdings, Inc (PBH) has reported 1.23 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $32.20 million, or $0.60 a share in the quarter, compared with $31.80 million, or $0.60 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $33.78 million, or $0.63 a share compared with $31.80 million or $0.60 a share, a year ago. Revenue during the quarter grew 4.36 percent to $215.05 million from $206.06 million in the previous year period. Gross margin for the quarter contracted 56 basis points over the previous year period to 57.64 percent. Total expenses were 66.96 percent of quarterly revenues, up from 66.08 percent for the same period last year. That has resulted in a contraction of 88 basis points in operating margin to 33.04 percent.
Operating income for the quarter was $71.06 million, compared with $69.90 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $78.10 million compared with $75.58 million in the prior year period. At the same time, adjusted EBITDA margin contracted 36 basis points in the quarter to 36.32 percent from 36.68 percent in the last year period.
“We are pleased with the results of the second fiscal quarter, which reflect record quarterly sales, continued strong adjusted earnings per share, free cash flow growth and debt repayment of more than $100 million during the quarter,” said Ron Lombardi, Chief executive officer. “We continue to gain market share across our invest for growth portfolio and continue to expect consumption to be in line with our organic growth targets for the year,” he said.
For financial year 2017, the company projects diluted earnings per share to be in the range of $1.55 to $1.61. For financial year 2017, the company projects diluted earnings per share to be in the range of $2.30 to $2.36 on adjusted basis.
Operating cash flow improves
Prestige Brands Holdings, Inc has generated cash of $100.28 million from operating activities during the first half, up 10.70 percent or $9.69 million, when compared with the last year period. Cash flow from investing activities was $51.02 million for the first half as against cash outgo of $1.34 million in the last year period.
The company has spent $147.68 million cash to carry out financing activities during the first six months as against cash outgo of $87.61 million in the last year period.
Cash and cash equivalents stood at $30.46 million as on Sep. 30, 2016, up 37.50 percent or $8.31 million from $22.15 million on Sep. 30, 2015.
Working capital increases sharply
Prestige Brands Holdings, Inc has recorded an increase in the working capital over the last year. It stood at $165.36 million as at Sep. 30, 2016, up 46.66 percent or $52.61 million from $112.75 million on Sep. 30, 2015. Current ratio was at 2.45 as on Sep. 30, 2016, up from 2.21 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 44 days for the quarter from 73 days for the last year period. Days sales outstanding went down to 38 days for the quarter compared with 39 days for the same period last year.
Days inventory outstanding has decreased to 49 days for the quarter compared with 81 days for the previous year period. At the same time, days payable outstanding went down to 44 days for the quarter from 48 for the same period last year.
Debt remains almost stable
Prestige Brands Holdings, Inc has witnessed an increase in total debt over the last one year. It stood at $1,479.66 million as on Sep. 30, 2016, up 0.53 percent or $7.80 million from $1,471.86 million on Sep. 30, 2015. Prestige Brands Holdings has witnessed an increase in long-term debt over the last one year. It stood at $1,479.66 million as on Sep. 30, 2016, up 0.53 percent or $7.80 million from $1,471.86 million on Sep. 30, 2015. Total debt was 52.27 percent of total assets as on Sep. 30, 2016, compared with 56.03 percent on Sep. 30, 2015. Debt to equity ratio was at 1.91 as on Sep. 30, 2016, down from 2.15 as on Sep. 30, 2015. Interest coverage ratio improved to 3.40 for the quarter from 3.38 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
