ST. LOUIS, Aug. 9, 2021 /PRNewswire/ -- Energizer
Holdings, Inc. (NYSE: ENR) today
announced results for the third fiscal quarter ended June 30,
2021.
"In our third quarter, we delivered nearly 10% Net sales growth
and nearly 50% Adjusted earnings per share growth behind strong
auto care results, solid execution across our business, and the
benefits of synergies and reduced interest expense," said
Mark Lavigne, Chief Executive
Officer. "Like other organizations, we are facing cost
pressures and supply chain disruptions, but our team has taken the
right steps to ensure we are able to serve customers and
consumers. The strength of our brands, the breadth of our
portfolio, and the resilience of this organization in the face of
the continuing pandemic position us well for success as we look
forward."
Top-Line Performance
For the quarter, elevated auto care demand in both geographical
segments resulted in strong Net sales of $721.8 million compared to $658.0 million in the prior year period.
|
Third
Quarter
|
|
%
Chg
|
Net sales -
FY'20
|
$
|
658.0
|
|
|
|
Organic
|
38.3
|
|
|
5.8
|
%
|
Impact of FY 2021
Acquisitions
|
4.9
|
|
|
0.7
|
%
|
Change in
Argentina
|
1.9
|
|
|
0.3
|
%
|
Impact of
currency
|
18.7
|
|
|
2.9
|
%
|
Net sales -
FY'21
|
$
|
721.8
|
|
|
9.7
|
%
|
- Organic Net sales increased 5.8%, or $38.3 million, due to the following items:
-
- Increased year over year volumes globally contributed
approximately 3.0%, primarily driven by elevated demand and timing
of orders in our auto care business;
- New distribution, predominately in North America, contributed approximately 1.8%;
and
- Favorable pricing contributed approximately 1%.
Gross Margin
Gross margin percentage on a reported basis was 37.9% versus
40.0% in the prior year. Excluding the current and prior year
costs related to acquisition and integration, adjusted gross margin
was 39.2%, down 160 basis points from the prior year.
|
|
Third
Quarter
|
Adjusted gross margin
- FY'20 (1)
|
|
40.8
|
%
|
Mix and product cost
impacts
|
|
(3.9)
|
%
|
Lower margin rate
profile of the FY 21 acquired businesses
|
|
(0.2)
|
%
|
Synergy
realization
|
|
2.2
|
%
|
Currency
impact
|
|
0.3
|
%
|
Adjusted gross margin
- FY'21 (1)
|
|
39.2
|
%
|
The Gross margin decrease was primarily driven by higher
operating costs, including higher labor costs, tariffs and
transportation, consistent with ongoing inflationary trends.
Additionally, gross margin was negatively impacted by the lower
margin rate profile of our auto care business, which comprised a
higher mix of our business as it experienced strong organic growth
in the quarter.
Partially offsetting these margin impacts were synergies of
approximately $14 million as well as
favorable currency exchange rates.
Selling, General and Administrative Expense
(SG&A)
SG&A, excluding acquisition and integration costs, for the
third quarter was 14.8% of Net sales, or $106.6 million, compared to 16.2% of Net sales,
or $106.7 million in the prior year.
The decrease, as a percent of Net sales, resulted from higher sales
and synergy realization while SG&A expense remained consistent
with prior year.(1)
Advertising and Promotion Expense (A&P)
A&P was 6.1% of net sales for the third fiscal quarter,
compared to 5.7% in the prior year or a $6.8
million increase due to planned incremental investment in
our product portfolio as we continue to invest in support of our
brands and innovation.
Earnings Per Share
and Adjusted EBITDA
|
Third
Quarter
|
(In millions, except
per share data)
|
2021
|
|
2020
|
Net earnings from
continuing operations
|
$
|
20.8
|
|
|
$
|
29.0
|
|
Diluted net earnings
per common share - continuing operations
|
$
|
0.24
|
|
|
$
|
0.37
|
|
|
|
|
|
Adjusted net earnings
from continuing operations(1)
|
$
|
54.6
|
|
|
$
|
38.5
|
|
Adjusted diluted net
earnings per common share - continuing operations
(1)
|
$
|
0.74
|
|
|
$
|
0.50
|
|
Adjusted
EBITDA(1)
|
$
|
144.4
|
|
|
$
|
134.6
|
|
The changes in Adjusted EBITDA and Adjusted diluted net earnings
per common share - continuing operations for the quarter reflect
organic revenue growth and synergy realization, slightly offset by
higher A&P, on an absolute dollar basis. The prior year quarter
also included net incremental COVID-19 costs of approximately
$9 million, or $0.11 per share.
In June 2021, the Company
refinanced its €650 million 4.625% Senior Notes due 2026 with €650
million 3.5% Senior Notes due 2029. As a result of the Company's
refinancing activity over the past 15 months, the Company reduced
its interest expense in the quarter by $12.2
million as compared to the prior year.
Free Cash Flow and Continued Return of Capital
- Generated year-to-date cash flows from continuing operations of
$17.5 million, as compared to
$231.9 million in the prior year's
third quarter, and Adjusted free cash flow from continuing
operations of $42.6 million in the
current year. Contributing to the decrease was the expected impacts
of quarter-over-quarter working capital changes, largely driven by
an increase in inventory levels. During the year, we've invested in
inventory to ensure we can maintain high service levels through the
first quarter of fiscal 2022, which is peak battery selling season.
In addition, we have taken a proactive approach to invest in
incremental safety stock given the continued volatility of the
global supply network– including uncertainty around product
sourcing, transportation challenges and labor availability. In
addition to the working capital changes, the prior year's first
quarter benefited from a $30 million
receipt of a valued added tax refund settlement. (1)
- Dividend payments in the quarter of approximately $20.5 million, or $0.30 per common share, and $4.0 million, or $1.875 per share of mandatory convertible
preferred stock.
- Net debt to credit-defined EBITDA was 5.0 times as of
June 30, 2021.
- The Company intends to enter into a $75.0 million accelerated share repurchase (ASR)
program in the fourth quarter of fiscal 2021, which, based on the
August 6, 2021 closing price of the
Company's common stock, equates to approximately 1.8 million shares
and represents approximately 2.5% of the Company's fully diluted
outstanding stock. The Company expects to fund these repurchases
using available cash on hand and revolver borrowings, and
anticipates that the ASR program will be completed before the end
of the calendar year 2021. Any repurchases will occur under the
Board of Directors' existing November
2020 repurchase authorization.
Financial Outlook and Assumptions for Fiscal Year
2021(1)
We are updating our full year fiscal 2021 outlook for the
following key metrics:
- Net sales growth is now expected to be between 8% to 9%,
attributed to distribution gains, elevated demand and favorable
currency impacts;
- Adjusted gross margin rate is expected to decrease 80 to 110
basis points on a year over year basis as inflationary cost
pressures continue to increase. Additional productivity management
efforts, synergies and the impacts of favorable currency are
expected to help offset some of the increased operational
costs.
- Adjusted free cash flow is now expected to exceed $225 million. As noted above, this is a result of
our investment in inventory to support the upcoming peak battery
season and to ensure we maintain high service levels for our
customers. We believe the steps we are taking to make these
investments are prudent given the potential disruptions which
continue to persist in the global supply network. We view this
investment as short-term in nature, and expect our inventory
balances to normalize in 2022.
We are maintaining our previously communicated full year outlook
ranges for Adjusted earnings per share of $3.30 to $3.50 and
Adjusted EBITDA of $620 to
$640 million.
Webcast Information
In conjunction with this announcement, the Company will hold an
investor conference call beginning at 10:00
a.m. Eastern Time today. The call will focus on third fiscal
quarter earnings and recent trends in the business. All interested
parties may access a live webcast of this conference call at
www.energizerholdings.com, under "Investors" and "Events and
Presentations" tabs or by using the following link:
https://www.webcaster4.com/Webcast/Page/1192/41697
For those unable to participate during the live webcast, a
replay will be available on www.energizerholdings.com, under
"Investors," "Events and Presentations," and "Past Events"
tabs.
# # #
This document contains both historical and forward-looking
statements. Forward-looking statements are not based on historical
facts but instead reflect our expectations, estimates or
projections concerning future results or events, including, without
limitation, the future sales, gross margins, costs, earnings, cash
flows, tax rates and performance of the Company, as well as the
Company's entrance into an accelerated share repurchase program.
These statements generally can be identified by the use of
forward-looking words or phrases such as "believe," "expect,"
"expectation," "anticipate," "may," "could," "intend," "belief,"
"estimate," "plan," "target," "predict," "likely," "should,"
"forecast," "outlook," or other similar words or phrases. These
statements are not guarantees of performance and are inherently
subject to known and unknown risks, uncertainties and assumptions
that are difficult to predict and could cause our actual results to
differ materially from those indicated by those statements. We
cannot assure you that any of our expectations, estimates or
projections will be achieved. The forward-looking statements
included in this document are only made as of the date of this
document and we disclaim any obligation to publicly update any
forward-looking statement to reflect subsequent events or
circumstances. Numerous factors could cause our actual results and
events to differ materially from those expressed or implied by
forward-looking statements, including, without limitation:
- Global economic and financial market conditions, including the
conditions resulting from the ongoing COVID-19 pandemic, and
actions taken by our customers, suppliers, other business partners
and governments in markets in which we compete might materially and
negatively impact us.
- Competition in our product categories might hinder our ability
to execute our business strategy, achieve profitability, or
maintain relationships with existing customers.
- Changes in the retail environment and consumer preferences
could adversely affect our business, financial condition and
results of operations.
- We must successfully manage the demand, supply, and operational
challenges brought about by the COVID-19 pandemic and any other
disease outbreak, including epidemics, pandemics, or similar
widespread public health concerns.
- Loss or impairment of the reputation of our Company or our
leading brands or failure of our marketing plans could have an
adverse effect on our business.
- Loss of any of our principal customers could significantly
decrease our sales and profitability.
- Our ability to meet our growth targets depends on successful
product, marketing and operations innovation and successful
responses to competitive innovation and changing consumer
habits.
- We are subject to risks related to our international
operations, including currency fluctuations, which could adversely
affect our results of operations.
- If we fail to protect our intellectual property rights,
competitors may manufacture and market similar products, which
could adversely affect our market share and results of
operations.
- Our reliance on certain significant suppliers subjects us to
numerous risks, including possible interruptions in supply, which
could adversely affect our business.
- Our business is vulnerable to the availability of raw
materials, our ability to forecast customer demand and our ability
to manage production capacity.
- Changes in production costs, including raw material prices,
freight and labor, could erode our profit margins and negatively
impact operating results, and reactions to our pricing
actions.
- The manufacturing facilities, supply channels or other business
operations of the Company and our suppliers may be subject to
disruption from events beyond our control.
- We may be unable to generate anticipated cost savings
(including from our restructuring programs), successfully implement
our strategies, or efficiently manage our supply chain and
manufacturing processes, and our profitability and cash flow could
suffer as a result.
- Sales of certain of our products are seasonal and adverse
weather conditions during our peak selling seasons for certain auto
care products could have a material adverse effect.
- A failure of a key information technology system could
adversely impact our ability to conduct business.
- Our operations depend on the use of information technology
systems that are subject to data privacy regulations, including
recently effective European Union requirements, and could be the
target of cyberattack.
- We have significant debt obligations that could adversely
affect our business and our ability to meet our obligations.
- We may experience losses or be subject to increased funding and
expenses related to our pension plans.
- The estimates and assumptions on which our financial
projections are based may prove to be inaccurate, which may cause
our actual results to materially differ from our projections, which
may adversely affect our future profitability, cash flows and stock
price.
- If we pursue strategic acquisitions, divestitures or joint
ventures, we might experience operating difficulties, dilution, and
other consequences that may harm our business, financial condition,
and operating results, and we may not be able to successfully
consummate favorable transactions or successfully integrate
acquired businesses.
- We may be unable to realize the anticipated benefits of the
2019 acquisitions of the global auto care and battery, lighting and
power businesses from Spectrum Brands.
- The 2019 auto care and battery acquisitions may have
liabilities that are not known to us and the acquisition agreements
may not provide us with sufficient indemnification with respect to
such liabilities.
- Our business involves the potential for claims of product
liability, labeling claims, commercial claims and other legal
claims against us, which could affect our results of operations and
financial condition and result in product recalls or
withdrawals.
- Our business is subject to increasing regulation in the U.S.
and abroad, the uncertainty and cost of future compliance and
consequence of non-compliance with which may have a material
adverse effect on our business.
- Increased focus by governmental and non-governmental
organizations, customers, consumers and shareholders on
sustainability issues, including those related to climate change,
may have an adverse effect on our business, financial condition and
results of operations and damage our reputation.
- We are subject to environmental laws and regulations that may
expose us to significant liabilities and have a material adverse
effect on our results of operations and financial condition.
- We cannot guarantee that any share repurchase program will be
fully consummated or that any share repurchase program will enhance
long-term stockholder value, and share repurchases could increase
the volatility of the price of our stock and diminish our cash
reserves.
In addition, other risks and uncertainties not presently known
to us or that we consider immaterial could affect the accuracy of
any such forward-looking statements. The list of factors above is
illustrative, but by no means exhaustive. All forward-looking
statements should be evaluated with the understanding of their
inherent uncertainty. Additional risks and uncertainties include
those detailed from time to time in our publicly filed documents,
including those described under the heading "Risk Factors" in our
Form 10-K filed with the Securities and Exchange Commission on
November 17, 2020.
ENERGIZER
HOLDINGS, INC.
|
CONSOLIDATED
STATEMENT OF EARNINGS
|
(Condensed)
|
(In millions,
except per share data - Unaudited)
|
|
|
For the Quarter
Ended June 30,
|
|
For the Nine
Months Ended June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net sales
|
$
|
721.8
|
|
|
$
|
658.0
|
|
|
$
|
2,255.5
|
|
|
$
|
1,981.8
|
|
Cost of products sold
(1)
|
448.5
|
|
|
394.8
|
|
|
1,373.8
|
|
|
1,181.7
|
|
Gross
profit
|
273.3
|
|
|
263.2
|
|
|
881.7
|
|
|
800.1
|
|
Selling, general and
administrative expense (1)
|
117.5
|
|
|
112.8
|
|
|
365.4
|
|
|
351.0
|
|
Advertising and sales
promotion expense
|
44.1
|
|
|
37.3
|
|
|
120.8
|
|
|
106.9
|
|
Research and
development expense (1)
|
8.2
|
|
|
8.4
|
|
|
24.8
|
|
|
25.6
|
|
Amortization of
intangible assets
|
15.2
|
|
|
14.3
|
|
|
46.0
|
|
|
42.3
|
|
Interest
expense
|
38.6
|
|
|
50.8
|
|
|
125.0
|
|
|
144.8
|
|
Loss on
extinguishment of debt (2)
|
27.6
|
|
|
—
|
|
|
103.3
|
|
|
4.2
|
|
Other items, net
(1)
|
(1.5)
|
|
|
0.7
|
|
|
(0.8)
|
|
|
5.8
|
|
Earnings before
income taxes
|
23.6
|
|
|
38.9
|
|
|
97.2
|
|
|
119.5
|
|
Income tax
provision
|
2.8
|
|
|
9.9
|
|
|
19.5
|
|
|
31.0
|
|
Net earnings from
continuing operations
|
20.8
|
|
|
29.0
|
|
|
77.7
|
|
|
88.5
|
|
Net earnings/(loss)
from discontinued operations (3)
|
—
|
|
|
0.8
|
|
|
—
|
|
|
(130.3)
|
|
Net
earnings/(loss)
|
20.8
|
|
|
29.8
|
|
|
77.7
|
|
|
(41.8)
|
|
Mandatory preferred
stock dividends
|
(4.0)
|
|
|
(4.0)
|
|
|
(12.1)
|
|
|
(12.1)
|
|
Net earnings/(loss)
attributable to common shareholders
|
$
|
16.8
|
|
|
$
|
25.8
|
|
|
$
|
65.6
|
|
|
$
|
(53.9)
|
|
|
|
|
|
|
|
|
|
Basic net earnings
per common share - continuing operations
|
$
|
0.25
|
|
|
$
|
0.37
|
|
|
$
|
0.96
|
|
|
$
|
1.11
|
|
Basic net
earnings/(loss) per common share - discontinued
operations
|
—
|
|
|
0.01
|
|
|
—
|
|
|
(1.89)
|
|
Basic net
earnings/(loss) per common share
|
$
|
0.25
|
|
|
$
|
0.38
|
|
|
$
|
0.96
|
|
|
$
|
(0.78)
|
|
|
|
|
|
|
|
|
|
Diluted net earnings
per common share - continuing operations
|
$
|
0.24
|
|
|
$
|
0.37
|
|
|
$
|
0.95
|
|
|
$
|
1.10
|
|
Diluted net
earnings/(loss) per common share - discontinued
operations
|
—
|
|
|
0.01
|
|
|
—
|
|
|
(1.88)
|
|
Diluted net
earnings/(loss) per common share
|
$
|
0.24
|
|
|
$
|
0.38
|
|
|
$
|
0.95
|
|
|
$
|
(0.78)
|
|
|
|
|
|
|
|
|
|
Weighted average
shares of common stock - Basic
|
68.4
|
|
|
68.5
|
|
|
68.4
|
|
|
68.9
|
|
Weighted average
shares of common stock - Diluted
|
68.6
|
|
|
68.7
|
|
|
68.7
|
|
|
69.4
|
|
|
|
(1)
|
See the attached
Supplemental Schedules - Non-GAAP Reconciliations, which break out
the Acquisition and integration related costs included within these
lines.
|
|
|
(2)
|
The Loss on the
extinguishment of debt for the quarter ended June 30, 2021
related to the Company's redemption of the €650 million Senior
Notes due in 2026 in June 2021. The nine months ended June 30,
2021 also includes the Company's term loan refinancing in December
2020 and the redemption of the $600.0 million Senior Notes due in
2027 in January 2021. The nine months ended June 30, 2020
includes the write off of deferred financing fees related to the
term loan refinancing in December 2019.
|
|
|
(3)
|
Included in these
results is the pre-tax loss on the disposition of the Varta
consumer battery business of $137.2 million in the nine months
ended June 30, 2020. The Net earnings/(loss) from discontinued
operations is net of an income tax benefit of $0.4 million and $6.6
million for the quarter and nine months ended June 30, 2020,
respectively
|
ENERGIZER
HOLDINGS, INC.
|
CONSOLIDATED
BALANCE SHEETS
|
(Condensed)
|
(In millions -
Unaudited)
|
|
Assets
|
June
30,
2021
|
|
September
30,
2020
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
207.7
|
|
|
$
|
459.8
|
|
Restricted
cash
|
—
|
|
|
790.0
|
|
Trade receivables
|
332.3
|
|
|
292.0
|
|
Inventories
|
691.1
|
|
|
511.3
|
|
Other current
assets
|
183.1
|
|
|
157.8
|
|
Total current
assets
|
$
|
1,414.2
|
|
|
$
|
2,210.9
|
|
Property, plant and
equipment, net
|
372.6
|
|
|
352.1
|
|
Operating lease
assets
|
115.5
|
|
|
121.9
|
|
Goodwill
|
1,058.2
|
|
|
1,016.0
|
|
Other intangible
assets, net
|
1,887.3
|
|
|
1,909.0
|
|
Deferred tax
asset
|
23.8
|
|
|
24.3
|
|
Other
assets
|
105.8
|
|
|
94.1
|
|
Total
assets
|
$
|
4,977.4
|
|
|
$
|
5,728.3
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
Current
liabilities
|
|
|
|
Current maturities of
long-term debt
|
$
|
12.0
|
|
|
$
|
841.3
|
|
Current portion of
capital leases
|
2.4
|
|
|
1.7
|
|
Notes
payable
|
103.4
|
|
|
3.8
|
|
Accounts
payable
|
407.9
|
|
|
378.1
|
|
Current operating
lease liabilities
|
15.6
|
|
|
14.8
|
|
Other current
liabilities
|
290.4
|
|
|
408.7
|
|
Total current
liabilities
|
$
|
831.7
|
|
|
$
|
1,648.4
|
|
Long-term
debt
|
3,355.6
|
|
|
3,306.9
|
|
Operating lease
liabilities
|
105.4
|
|
|
111.9
|
|
Deferred tax
liability
|
149.6
|
|
|
140.4
|
|
Other
liabilities
|
194.5
|
|
|
211.6
|
|
Total
liabilities
|
$
|
4,636.8
|
|
|
$
|
5,419.2
|
|
Shareholders'
equity
|
|
|
|
Common
stock
|
0.7
|
|
|
0.7
|
|
Mandatory convertible
preferred stock
|
—
|
|
|
—
|
|
Additional paid-in
capital
|
850.3
|
|
|
859.2
|
|
Retained
earnings
|
(64.3)
|
|
|
(66.2)
|
|
Treasury
stock
|
(181.8)
|
|
|
(176.9)
|
|
Accumulated other
comprehensive loss
|
(264.3)
|
|
|
(307.7)
|
|
Total shareholders'
equity
|
$
|
340.6
|
|
|
$
|
309.1
|
|
Total liabilities and
shareholders' equity
|
$
|
4,977.4
|
|
|
$
|
5,728.3
|
|
ENERGIZER
HOLDINGS, INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Condensed)
|
(In millions -
Unaudited)
|
|
|
For the Nine
Months Ended June 30,
|
|
2021
|
|
2020
|
Cash Flow from
Operating Activities
|
|
|
|
Net
earnings/(loss)
|
$
|
77.7
|
|
|
$
|
(41.8)
|
|
Net loss from discontinued
operations
|
—
|
|
|
(130.3)
|
|
Net earnings from
continuing operations
|
77.7
|
|
|
88.5
|
|
Non-cash integration
and restructuring charges
|
4.5
|
|
|
12.1
|
|
Depreciation and
amortization
|
88.7
|
|
|
84.3
|
|
Deferred income
taxes
|
2.1
|
|
|
2.1
|
|
Share-based
compensation expense
|
13.3
|
|
|
21.2
|
|
Loss on extinguishment
of debt
|
103.3
|
|
|
4.2
|
|
Non-cash items
included in income, net
|
12.8
|
|
|
18.4
|
|
Other, net
|
(3.5)
|
|
|
0.2
|
|
Changes in current
assets and liabilities used in operations
|
(281.4)
|
|
|
0.9
|
|
Net cash from
operating activities from continuing operations
|
17.5
|
|
|
231.9
|
|
Net cash used by
operating activities from discontinued operations
|
—
|
|
|
(12.9)
|
|
Net cash from
operating activities
|
17.5
|
|
|
219.0
|
|
Cash Flow from
Investing Activities
|
|
|
|
Capital
expenditures
|
(42.7)
|
|
|
(44.4)
|
|
Proceeds from sale of
assets
|
—
|
|
|
1.5
|
|
Acquisitions, net of
cash acquired
|
(67.2)
|
|
|
(4.5)
|
|
Net cash used by
investing activities from continuing operations
|
(109.9)
|
|
|
(47.4)
|
|
Net cash from
investing activities from discontinued operations
|
—
|
|
|
280.9
|
|
Net cash (used
by)/from investing activities
|
(109.9)
|
|
|
233.5
|
|
Cash Flow from
Financing Activities
|
|
|
|
Cash proceeds from
issuance of debt with original maturities greater than 90
days
|
1,982.6
|
|
|
620.6
|
|
Payments on debt with
maturities greater than 90 days
|
(2,770.2)
|
|
|
(770.3)
|
|
Net increase in debt
with original maturities of 90 days or less
|
106.6
|
|
|
171.5
|
|
Premiums paid on
extinguishment of debt
|
(141.1)
|
|
|
—
|
|
Debt issuance
costs
|
(27.6)
|
|
|
(6.1)
|
|
Payment of contingent
consideration
|
(3.9)
|
|
|
—
|
|
Dividends paid on
common stock
|
(63.8)
|
|
|
(64.3)
|
|
Dividends paid on
mandatory convertible preferred stock
|
(12.1)
|
|
|
(12.1)
|
|
Common stock
purchased
|
(21.3)
|
|
|
(45.0)
|
|
Taxes paid for
withheld share-based payments
|
(6.7)
|
|
|
(9.7)
|
|
Net cash used by
financing activities from continuing operations
|
(957.5)
|
|
|
(115.4)
|
|
Net cash used by
financing activities from discontinued operations
|
—
|
|
|
(1.1)
|
|
Net cash used by
financing activities
|
(957.5)
|
|
|
(116.5)
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
7.8
|
|
|
1.1
|
|
|
|
|
|
Net
(decrease)/increase in cash, cash equivalents, and restricted cash
from continuing operations
|
(1,042.1)
|
|
|
70.2
|
|
Net increase in cash,
cash equivalents, and restricted cash from discontinued
operations
|
—
|
|
|
266.9
|
|
Net
(decrease)/increase in cash, cash equivalents, and restricted
cash
|
(1,042.1)
|
|
|
337.1
|
|
Cash, cash
equivalents, and restricted cash, beginning of period
|
1,249.8
|
|
|
258.5
|
|
Cash, cash
equivalents, and restricted cash, end of period
|
$
|
207.7
|
|
|
$
|
595.6
|
|
ENERGIZER HOLDINGS,
INC.
Reconciliation of GAAP and Non-GAAP
Measures
For the Quarter and Nine Months Ended
June 30, 2021
The Company reports its financial results in accordance with
accounting principles generally accepted in the U.S.
("GAAP"). However, management believes that certain non-GAAP
financial measures provide users with additional meaningful
comparisons to the corresponding historical or future period. These
non-GAAP financial measures exclude items that are not reflective
of the Company's on-going operating performance, such as
acquisition and integration costs, an acquisition earn out and the
loss on extinguishment of debt. In addition, these measures
help investors to analyze year over year comparability when
excluding currency fluctuations, acquisition activity as well as
other Company initiatives that are not on-going. We believe
these non-GAAP financial measures are an enhancement to assist
investors in understanding our business and in performing analysis
consistent with financial models developed by research analysts.
Investors should consider non-GAAP measures in addition to, not as
a substitute for, or superior to, the comparable GAAP
measures. In addition, these non-GAAP measures may not be the
same as similar measures used by other companies due to possible
differences in methods and in the items being adjusted.
We provide the following non-GAAP measures and calculations, as
well as the corresponding reconciliation to the closest GAAP
measure in the following supplemental schedules:
Segment Profit. This amount represents the
operations of our two reportable segments including allocations for
shared support functions. General corporate and other
expenses, global marketing expenses, R&D expenses, amortization
expense, interest expense, other items, net, the charges related to
acquisition and integration costs and an acquisition earn out have
all been excluded from segment profit.
Adjusted Net Earnings From Continuing Operations and Adjusted
Diluted Net Earnings Per Common Share - Continuing Operations
(EPS). These measures exclude the impact of the costs
related to acquisition and integration, an acquisition earn out and
the loss on extinguishment of debt.
Non-GAAP Tax Rate. This is the tax rate when excluding
the pre-tax impact of acquisition and integration costs, an
acquisition earn out and the loss on extinguishment of debt, as
well as the related tax impact for these items, calculated
utilizing the statutory rate for where the impact was incurred.
Organic. This is the non-GAAP financial measurement
of the change in revenue or segment profit that excludes or
otherwise adjusts for the impact of acquisitions, change in
Argentina operations and impact of
currency from the changes in foreign currency exchange rates as
defined below:
Impact of acquisitions.
Energizer completed two acquisitions in the first fiscal quarter of
2021, a battery plant in Indonesia
on October 1, 2020 and a formulation
company in the United States on
December 1, 2020 (Formulations
Acquisition). These adjustments include the impact of the
acquisitions' ongoing operations contributed to each respective
income statement caption for the first year's operations directly
after the acquisition date. This does not include the impact of
acquisition and integration costs associated with any
acquisition.
Change in Argentina Operations. The Company is
presenting separately all changes in sales and segment profit from
our Argentina affiliate due to the
designation of the economy as highly inflationary as of
July 1, 2018.
Impact of currency. The
Company evaluates the operating performance of our Company on a
currency neutral basis. The impact of currency is the
difference between the value of current year foreign operations at
the current period ending USD exchange rate, compared to the value
of the current year foreign operations at the prior period ending
USD exchange rate, as well as the impact of hedging on the
currency fluctuation.
Adjusted Comparisons. Detail for adjusted gross
profit, adjusted gross margin, adjusted SG&A, adjusted SG&A
as percent of sales, adjusted R&D and adjusted Other items, net
are also supplemental non-GAAP measure disclosures. These measures
exclude the impact of costs related to acquisition and integration
and an acquisition earn out.
Free Cash Flow and Adjusted Free Cash Flow. Free Cash
Flow is defined as net cash provided by operating
activities from continuing operations reduced by capital
expenditures, net of the proceeds from asset sales. Adjusted
Free Cash Flow is defined as Free Cash Flow excluding the cash
payments for acquisition and integration expenses and integration
capital expenditures. The expense cash payments are net of the
statutory tax benefit associated with the payment.
EBITDA and Adjusted EBITDA. EBITDA is defined as net
earnings before income tax provision, interest, loss on
extinguishment of debt and depreciation and amortization.
Adjusted EBITDA further excludes the impact of the costs
related to acquisition and integration, acquisition earn out and
share-based payments.
Energizer Holdings,
Inc.
Supplemental Schedules - Segment Information and
Supplemental Sales Data
For the Quarter and Nine Months
Ended June 30, 2021
(In
millions - Unaudited)
Operations for Energizer are managed via two major geographic
reportable segments: Americas and International. Energizer's
operating model includes a combination of standalone and shared
business functions between the geographic segments, varying by
country and region of the world. Energizer applies a fully
allocated cost basis, in which shared business functions are
allocated between segments. Such allocations are estimates, and do
not represent the costs of such services if performed on a
standalone basis. Segment sales and profitability, as well as
the reconciliation to earnings before income taxes, for the quarter
and nine months ended June 30, 2021 and 2020, respectively,
are presented below:
|
Quarter Ended June
30,
|
|
Nine Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net
Sales
|
|
|
|
|
|
|
|
Americas
|
$
|
525.2
|
|
|
$
|
491.9
|
|
|
$
|
1,593.8
|
|
|
$
|
1,416.3
|
|
International
|
196.6
|
|
|
166.1
|
|
|
661.7
|
|
|
565.5
|
|
Total net
sales
|
$
|
721.8
|
|
|
$
|
658.0
|
|
|
$
|
2,255.5
|
|
|
$
|
1,981.8
|
|
Segment
Profit
|
|
|
|
|
|
|
|
Americas
|
127.7
|
|
|
122.9
|
|
|
415.9
|
|
|
353.9
|
|
International
|
35.8
|
|
|
34.8
|
|
|
135.2
|
|
|
127.4
|
|
Total segment
profit
|
$
|
163.5
|
|
|
$
|
157.7
|
|
|
$
|
551.1
|
|
|
$
|
481.3
|
|
General corporate and other expenses (1)
|
(21.5)
|
|
|
(25.6)
|
|
|
(71.3)
|
|
|
(74.0)
|
|
Global marketing expense (2)
|
(9.8)
|
|
|
(7.4)
|
|
|
(28.7)
|
|
|
(19.1)
|
|
Research and development expense - Adjusted (3)
|
(8.1)
|
|
|
(8.2)
|
|
|
(23.7)
|
|
|
(24.4)
|
|
Amortization of intangible assets
|
(15.2)
|
|
|
(14.3)
|
|
|
(46.0)
|
|
|
(42.3)
|
|
Acquisition and integration costs (4)
|
(19.5)
|
|
|
(11.4)
|
|
|
(54.6)
|
|
|
(47.6)
|
|
Acquisition earn out (5)
|
(1.2)
|
|
|
—
|
|
|
(2.3)
|
|
|
—
|
|
Interest expense
|
(38.6)
|
|
|
(50.8)
|
|
|
(125.0)
|
|
|
(144.8)
|
|
Loss on extinguishment of debt
|
(27.6)
|
|
|
—
|
|
|
(103.3)
|
|
|
(4.2)
|
|
Other items, net - Adjusted (6)
|
1.6
|
|
|
(1.1)
|
|
|
1.0
|
|
|
(5.4)
|
|
Total earnings
before income taxes
|
$
|
23.6
|
|
|
$
|
38.9
|
|
|
$
|
97.2
|
|
|
$
|
119.5
|
|
|
|
(1)
|
Recorded in SG&A
on the Consolidated (Condensed) Statement of Earnings.
|
(2)
|
The quarter and nine
months ended June 30, 2021 includes $4.9 million and $14.5
million recorded in SG&A, respectively, and $4.9 million
and $14.2 million recorded in Advertising and sales promotion
expense, respectively, on the Consolidated (Condensed) Statement of
Earnings. The quarter and nine months ended June 30,
2020 includes $3.0 million and $8.5 million recorded in SG&A,
respectively, and $4.4 million and $10.6 million recorded in
Advertising and sales promotion expense, respectively, in the
Consolidated (Condensed) Statement of Earnings.
|
(3)
|
Research and
development expense for the quarter and nine months ended
June 30, 2021 included $0.1 million and $1.1 million,
respectively, and included $0.2 million and $1.2 million for the
quarter and nine months ended June 30, 2020, respectively, of
acquisition and integration costs which have been reclassified for
purposes of the reconciliation above.
|
(4)
|
See the Supplemental
Schedules - Non-GAAP Reconciliations for the line items where these
charges are recorded in the Consolidated (Condensed) Statement of
Earnings.
|
(5)
|
This represents the
estimated earn out achieved through June 30, 2021 under the
incentive agreements entered into with the Formulations Acquisition
and is recorded in SG&A on the Consolidated (Condensed)
Statement of Earnings.
|
(6)
|
See the Supplemental
Non-GAAP reconciliation for the Other items, net reconciliation
between the reported and adjusted balances.
|
Supplemental product information is presented below for revenues
from external customers:
|
Quarter Ended June
30,
|
|
Nine Months Ended
June 30,
|
Net
Sales
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Batteries
|
$
|
482.9
|
|
|
$
|
470.7
|
|
|
$
|
1,701.8
|
|
|
$
|
1,520.3
|
|
Auto Care
|
206.4
|
|
|
161.4
|
|
|
447.1
|
|
|
370.3
|
|
Lights, Licensing and
Other
|
32.5
|
|
|
25.9
|
|
|
106.6
|
|
|
91.2
|
|
Total net
sales
|
$
|
721.8
|
|
|
$
|
658.0
|
|
|
$
|
2,255.5
|
|
|
$
|
1,981.8
|
|
Energizer Holdings,
Inc.
Supplemental Schedules - GAAP EPS to Adjusted EPS
Reconciliation
For the Quarter and Nine Months Ended
June 30, 2021
(In
millions, except per share data - Unaudited)
The following tables provide a reconciliation of Net earnings
from continuing operations and Diluted net earnings per common
share - continuing operations to Adjusted net earnings from
continuing operations and Adjusted diluted net earnings per share -
continuing operations, which are non-GAAP measures.
|
For the Quarter
Ended
June 30,
|
|
For the Nine
Months
Ended June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net earnings/(loss)
attributable to common shareholders
|
$
|
16.8
|
|
|
$
|
25.8
|
|
|
$
|
65.6
|
|
|
$
|
(53.9)
|
|
Mandatory preferred
stock dividends
|
(4.0)
|
|
|
(4.0)
|
|
|
(12.1)
|
|
|
(12.1)
|
|
Net
earnings/(loss)
|
20.8
|
|
|
29.8
|
|
|
77.7
|
|
|
(41.8)
|
|
Net earnings/(loss)
from discontinued operations
|
—
|
|
|
0.8
|
|
|
—
|
|
|
(130.3)
|
|
Net earnings from
continuing operations
|
$
|
20.8
|
|
|
$
|
29.0
|
|
|
$
|
77.7
|
|
|
$
|
88.5
|
|
Pre-tax
adjustments
|
|
|
|
|
|
|
|
Acquisition and
integration (1)
|
19.5
|
|
|
11.4
|
|
|
54.6
|
|
|
47.6
|
|
Acquisition earn
out
|
1.2
|
|
|
—
|
|
|
2.3
|
|
|
—
|
|
Loss on
extinguishment of debt
|
27.6
|
|
|
—
|
|
|
103.3
|
|
|
4.2
|
|
Total adjustments,
pre-tax
|
$
|
48.3
|
|
|
$
|
11.4
|
|
|
$
|
160.2
|
|
|
$
|
51.8
|
|
After tax
adjustments
|
|
|
|
|
|
|
|
Acquisition and
integration
|
14.8
|
|
|
7.8
|
|
|
42.1
|
|
|
35.3
|
|
Acquisition earn
out
|
0.9
|
|
|
—
|
|
|
1.7
|
|
|
—
|
|
Loss on
extinguishment of debt
|
18.1
|
|
|
—
|
|
|
76.1
|
|
|
3.2
|
|
One-time impact of
the CARES Act
|
—
|
|
|
1.7
|
|
|
—
|
|
|
5.1
|
|
Total adjustments,
after tax
|
$
|
33.8
|
|
|
$
|
9.5
|
|
|
$
|
119.9
|
|
|
$
|
43.6
|
|
Adjusted net earnings
from continuing operations (2)
|
$
|
54.6
|
|
|
$
|
38.5
|
|
|
$
|
197.6
|
|
|
$
|
132.1
|
|
Mandatory preferred
stock dividends
|
(4.0)
|
|
|
(4.0)
|
|
|
(12.1)
|
|
|
(12.1)
|
|
Adjusted net earnings
from continuing operations attributable to
common shareholders
|
$
|
50.6
|
|
|
$
|
34.5
|
|
|
$
|
185.5
|
|
|
$
|
120.0
|
|
Diluted net earnings
per common share - continuing operations
|
$
|
0.24
|
|
|
$
|
0.37
|
|
|
$
|
0.95
|
|
|
$
|
1.10
|
|
Adjustments
|
|
|
|
|
|
|
|
Acquisition and
integration
|
0.22
|
|
|
0.11
|
|
|
0.57
|
|
|
0.51
|
|
Acquisition earn
out
|
0.01
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
Loss on
extinguishment of debt
|
0.27
|
|
|
—
|
|
|
1.04
|
|
|
0.05
|
|
One time impact of
the CARES Act
|
—
|
|
|
0.02
|
|
|
—
|
|
|
0.07
|
|
Impact for diluted
share calculation (3)
|
—
|
|
|
—
|
|
|
0.11
|
|
|
—
|
|
Adjusted diluted net
earnings per diluted common share -
continuing operations (3)
|
$
|
0.74
|
|
|
$
|
0.50
|
|
|
$
|
2.69
|
|
|
$
|
1.73
|
|
Weighted average
shares of common stock - Diluted
|
68.6
|
|
|
68.7
|
|
|
68.7
|
|
|
69.4
|
|
Adjusted Weighted
average shares of common stock - Diluted (3)
|
68.6
|
|
|
68.7
|
|
|
73.4
|
|
|
69.4
|
|
|
|
(1)
|
See Supplemental
Schedules - Non-GAAP Reconciliations for the line items where these
costs are recorded on the unaudited Consolidated (Condensed)
Statement of Earnings.
|
(2)
|
The effective tax
rate for the Adjusted - Non-GAAP Earnings and Diluted EPS for the
quarters ended June 30, 2021 and 2020 was 24.1% and
23.5%, respectively, and for the nine months ended June 30,
2021 and 2020 was 23.2% and 22.9%, respectively, as calculated
utilizing the statutory rate for where the costs were
incurred.
|
(3)
|
For the nine months
ended June 30, 2021, the Adjusted diluted net earnings per
common share assumes the conversion of the mandatory convertible
preferred stock to 4.7 million shares of common stock, and excludes
the mandatory preferred stock dividends from net earnings as that
is more dilutive to the calculation.
|
For the quarter ended June 30,
2021 and the quarter and nine months ended June 30,
2020, the conversion of the mandatory convertible preferred stock
is not dilutive and the mandatory preferred stock dividends are
included in the adjusted dilution calculation.
Energizer
Holdings, Inc.
|
Supplemental
Schedules - Segment Sales
|
For the Quarter
and Nine Months Ended June 30, 2021
|
(In millions -
Unaudited)
|
|
Net
sales
|
Q1'21
|
|
%
Chg
|
|
Q2'21
|
|
%
Chg
|
|
Q3'21
|
|
%
Chg
|
|
Nine
Months
'21
|
|
%
Chg
|
Americas
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales - prior
year
|
$
|
514.5
|
|
|
|
|
$
|
409.9
|
|
|
|
|
$
|
491.9
|
|
|
|
|
$
|
1,416.3
|
|
|
|
Organic
|
65.9
|
|
|
12.8
|
%
|
|
64.0
|
|
|
15.6
|
%
|
|
23.2
|
|
|
4.7
|
%
|
|
153.1
|
|
|
10.8
|
%
|
Impact of FY 2021
Acquisitions
|
7.3
|
|
|
1.4
|
%
|
|
7.6
|
|
|
1.9
|
%
|
|
3.6
|
|
|
0.7
|
%
|
|
18.5
|
|
|
1.3
|
%
|
Change in
Argentina
|
2.8
|
|
|
0.5
|
%
|
|
0.8
|
|
|
0.2
|
%
|
|
1.9
|
|
|
0.4
|
%
|
|
5.5
|
|
|
0.4
|
%
|
Impact of
currency
|
(3.9)
|
|
|
(0.7)
|
%
|
|
(0.3)
|
|
|
(0.1)
|
%
|
|
4.6
|
|
|
1.0
|
%
|
|
0.4
|
|
|
—
|
%
|
Net sales -
current year
|
$
|
586.6
|
|
|
14.0
|
%
|
|
$
|
482.0
|
|
|
17.6
|
%
|
|
$
|
525.2
|
|
|
6.8
|
%
|
|
$
|
1,593.8
|
|
|
12.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales - prior
year
|
$
|
222.3
|
|
|
|
|
$
|
177.1
|
|
|
|
|
$
|
166.1
|
|
|
|
|
$
|
565.5
|
|
|
|
Organic
|
27.4
|
|
|
12.3
|
%
|
|
10.7
|
|
|
6.0
|
%
|
|
15.1
|
|
|
9.1
|
%
|
|
53.2
|
|
|
9.4
|
%
|
Impact of FY 2021
Acquisitions
|
2.3
|
|
|
1.0
|
%
|
|
3.1
|
|
|
1.8
|
%
|
|
1.3
|
|
|
0.8
|
%
|
|
6.7
|
|
|
1.2
|
%
|
Impact of
currency
|
10.0
|
|
|
4.6
|
%
|
|
12.2
|
|
|
6.9
|
%
|
|
14.1
|
|
|
8.5
|
%
|
|
36.3
|
|
|
6.4
|
%
|
Net sales -
current year
|
$
|
262.0
|
|
|
17.9
|
%
|
|
$
|
203.1
|
|
|
14.7
|
%
|
|
$
|
196.6
|
|
|
18.4
|
%
|
|
$
|
661.7
|
|
|
17.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales - prior
year
|
$
|
736.8
|
|
|
|
|
$
|
587.0
|
|
|
|
|
$
|
658.0
|
|
|
|
|
$
|
1,981.8
|
|
|
|
Organic
|
93.3
|
|
|
12.7
|
%
|
|
74.7
|
|
|
12.7
|
%
|
|
38.3
|
|
|
5.8
|
%
|
|
206.3
|
|
|
10.4
|
%
|
Impact of FY 2021
Acquisitions
|
9.6
|
|
|
1.3
|
%
|
|
10.7
|
|
|
1.8
|
%
|
|
4.9
|
|
|
0.7
|
%
|
|
25.2
|
|
|
1.3
|
%
|
Change in
Argentina
|
2.8
|
|
|
0.4
|
%
|
|
0.8
|
|
|
0.1
|
%
|
|
1.9
|
|
|
0.3
|
%
|
|
5.5
|
|
|
0.3
|
%
|
Impact of
currency
|
6.1
|
|
|
0.8
|
%
|
|
11.9
|
|
|
2.1
|
%
|
|
18.7
|
|
|
2.9
|
%
|
|
36.7
|
|
|
1.8
|
%
|
Net sales -
current year
|
$
|
848.6
|
|
|
15.2
|
%
|
|
$
|
685.1
|
|
|
16.7
|
%
|
|
$
|
721.8
|
|
|
9.7
|
%
|
|
$
|
2,255.5
|
|
|
13.8
|
%
|
Energizer
Holdings, Inc.
|
Supplemental
Schedules - Segment Profit
|
For the Quarter
and Nine Months Ended June 30, 2021
|
(In millions -
Unaudited)
|
|
Segment
profit
|
Q1'21
|
|
%
Chg
|
|
Q2'21
|
|
%
Chg
|
|
Q3'21
|
|
%
Chg
|
|
Nine
Months
'21
|
|
%
Chg
|
Americas
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit -
prior year
|
$
|
129.2
|
|
|
|
|
$
|
101.8
|
|
|
|
|
$
|
122.9
|
|
|
|
|
$
|
353.9
|
|
|
|
Organic
|
25.8
|
|
|
20.0
|
%
|
|
29.8
|
|
|
29.3
|
%
|
|
3.2
|
|
|
2.6
|
%
|
|
58.8
|
|
|
16.6
|
%
|
Impact of FY 2021
Acquisitions
|
1.1
|
|
|
0.9
|
%
|
|
1.5
|
|
|
1.5
|
%
|
|
0.4
|
|
|
0.3
|
%
|
|
3.0
|
|
|
0.8
|
%
|
Change in
Argentina
|
2.3
|
|
|
1.8
|
%
|
|
0.8
|
|
|
0.8
|
%
|
|
1.2
|
|
|
1.0
|
%
|
|
4.3
|
|
|
1.2
|
%
|
Impact of
currency
|
(2.5)
|
|
|
(2.0)
|
%
|
|
(1.6)
|
|
|
(1.6)
|
%
|
|
—
|
|
|
—
|
%
|
|
(4.1)
|
|
|
(1.1)
|
%
|
Segment profit -
current year
|
$
|
155.9
|
|
|
20.7
|
%
|
|
$
|
132.3
|
|
|
30.0
|
%
|
|
$
|
127.7
|
|
|
3.9
|
%
|
|
$
|
415.9
|
|
|
17.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit -
prior year
|
$
|
52.2
|
|
|
|
|
$
|
40.4
|
|
|
|
|
$
|
34.8
|
|
|
|
|
127.4
|
|
|
|
Organic
|
0.7
|
|
|
1.3
|
%
|
|
(6.0)
|
|
|
(14.9)
|
%
|
|
(5.2)
|
|
|
(14.9)
|
%
|
|
(10.5)
|
|
|
(8.2)
|
%
|
Impact of FY 2021
Acquisitions
|
0.2
|
|
|
0.4
|
%
|
|
0.3
|
|
|
0.7
|
%
|
|
(0.1)
|
|
|
(0.3)
|
%
|
|
0.4
|
|
|
0.3
|
%
|
Impact of
currency
|
6.7
|
|
|
12.9
|
%
|
|
4.9
|
|
|
12.2
|
%
|
|
6.3
|
|
|
18.1
|
%
|
|
17.9
|
|
|
14.0
|
%
|
Segment profit -
current year
|
$
|
59.8
|
|
|
14.6
|
%
|
|
$
|
39.6
|
|
|
(2.0)
|
%
|
|
$
|
35.8
|
|
|
2.9
|
%
|
|
$
|
135.2
|
|
|
6.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Segment
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit -
prior year
|
$
|
181.4
|
|
|
|
|
$
|
142.2
|
|
|
|
|
$
|
157.7
|
|
|
|
|
$
|
481.3
|
|
|
|
Organic
|
26.5
|
|
|
14.6
|
%
|
|
23.8
|
|
|
16.7
|
%
|
|
(2.0)
|
|
|
(1.3)
|
%
|
|
48.3
|
|
|
10.0
|
%
|
Impact of FY 2021
Acquisitions
|
1.3
|
|
|
0.7
|
%
|
|
1.8
|
|
|
1.3
|
%
|
|
0.3
|
|
|
0.2
|
%
|
|
3.4
|
|
|
0.7
|
%
|
Change in
Argentina
|
2.3
|
|
|
1.3
|
%
|
|
0.8
|
|
|
0.6
|
%
|
|
1.2
|
|
|
0.8
|
%
|
|
4.3
|
|
|
0.9
|
%
|
Impact of
currency
|
4.2
|
|
|
2.3
|
%
|
|
3.3
|
|
|
2.3
|
%
|
|
6.3
|
|
|
4.0
|
%
|
|
13.8
|
|
|
2.9
|
%
|
Segment profit -
current year
|
$
|
215.7
|
|
|
18.9
|
%
|
|
$
|
171.9
|
|
|
20.9
|
%
|
|
$
|
163.5
|
|
|
3.7
|
%
|
|
$
|
551.1
|
|
|
14.5
|
%
|
Energizer
Holdings, Inc.
|
Supplemental
Schedules - Non-GAAP Reconciliations
|
For the Quarter
and Nine Months Ended June 30, 2021
|
(In millions -
Unaudited)
|
|
Gross
profit
|
Q1'21
|
Q2'21
|
Q3'21
|
|
Q1'20
|
Q2'20
|
Q3'20
|
|
Q3'21
YTD
|
|
Q3'20
YTD
|
Net sales
|
$848.6
|
$685.1
|
$721.8
|
|
$736.6
|
$587.0
|
$658.0
|
|
$2,255.5
|
|
$1,981.8
|
Cost of products sold
- adjusted
|
503.0
|
407.3
|
438.9
|
|
428.6
|
343.1
|
389.3
|
|
1,349.2
|
|
1,161.0
|
Adjusted Gross
profit
|
$345.6
|
$277.8
|
$282.9
|
|
$308.0
|
$243.9
|
$268.7
|
|
$906.3
|
|
$820.8
|
Adjusted Gross
margin
|
40.7%
|
40.5%
|
39.2%
|
|
41.8%
|
41.6%
|
40.8%
|
|
40.2%
|
|
41.4%
|
Acquisition and
integration costs
|
7.7
|
7.3
|
9.6
|
|
6.9
|
8.3
|
5.5
|
|
24.6
|
|
20.7
|
Reported Cost of
products sold
|
510.7
|
414.6
|
448.5
|
|
435.5
|
351.4
|
394.8
|
|
1,373.8
|
|
1,181.7
|
Gross
profit
|
$337.9
|
$270.5
|
$273.3
|
|
$301.1
|
$235.6
|
$263.2
|
|
$881.7
|
|
$800.1
|
Gross
margin
|
39.8%
|
39.5%
|
37.9%
|
|
40.9%
|
40.1%
|
40.0%
|
|
39.1%
|
|
40.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
SG&A
|
Q1'21
|
Q2'21
|
Q3'21
|
|
Q1'20
|
Q2'20
|
Q3'20
|
|
Q3'21
YTD
|
|
Q3'20
YTD
|
Segment
SG&A
|
$84.9
|
$82.8
|
$79.7
|
|
$84.1
|
$82.4
|
$78.5
|
|
$247.4
|
|
$245.0
|
Corporate
SG&A
|
23.9
|
26.6
|
22.0
|
|
24.0
|
23.0
|
25.2
|
|
$72.5
|
|
72.2
|
Global
Marketing
|
4.9
|
4.7
|
4.9
|
|
2.9
|
2.6
|
3.0
|
|
$14.5
|
|
8.5
|
SG&A Adjusted
- subtotal
|
$113.7
|
$114.1
|
$106.6
|
|
$111.0
|
$108.0
|
$106.7
|
|
$334.4
|
|
$325.7
|
SG&A Adjusted
% of Net sales
|
13.4%
|
16.7%
|
14.8%
|
|
15.1%
|
18.4%
|
16.2%
|
|
14.8%
|
|
16.4%
|
Acquisition and
integration costs
|
10.4
|
8.6
|
9.7
|
|
11.1
|
8.1
|
6.1
|
|
28.7
|
|
25.3
|
Acquisition earn
out
|
—
|
1.1
|
1.2
|
|
—
|
—
|
—
|
|
2.3
|
|
—
|
Reported
SG&A
|
$124.1
|
$123.8
|
$117.5
|
|
$122.1
|
$116.1
|
$112.8
|
|
$365.4
|
|
$351.0
|
Reported SG&A
% of Net sales
|
14.6%
|
18.1%
|
16.3%
|
|
16.6%
|
19.8%
|
17.1%
|
|
16.2%
|
|
17.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
Other items,
net
|
Q1'21
|
Q2'21
|
Q3'21
|
|
Q1'20
|
Q2'20
|
Q3'20
|
|
Q3'21
YTD
|
|
Q3'20
YTD
|
Interest
income
|
$(0.1)
|
$(0.2)
|
$(0.2)
|
|
$(0.1)
|
$(0.1)
|
$(0.2)
|
|
$(0.5)
|
|
$(0.4)
|
Foreign currency
exchange loss/(gain)
|
1.3
|
0.5
|
(0.9)
|
|
(0.4)
|
5.5
|
2.9
|
|
0.9
|
|
8.0
|
Pension benefit other
than service costs
|
(0.5)
|
(0.5)
|
(0.6)
|
|
(0.5)
|
(0.5)
|
(0.5)
|
|
(1.6)
|
|
(1.5)
|
Other
|
—
|
0.1
|
0.1
|
|
0.1
|
0.3
|
(1.1)
|
|
0.2
|
|
(0.7)
|
Other items, net -
Adjusted
|
$0.7
|
$(0.1)
|
$(1.6)
|
|
$(0.9)
|
$5.2
|
$1.1
|
|
$(1.0)
|
|
$5.4
|
Acquisition foreign
currency loss
|
—
|
—
|
—
|
|
2.2
|
—
|
—
|
|
—
|
|
2.2
|
Transition services
agreement income
|
—
|
—
|
—
|
|
(0.3)
|
(0.1)
|
(0.4)
|
|
—
|
|
(0.8)
|
Other
|
0.1
|
—
|
0.1
|
|
(1.0)
|
—
|
—
|
|
0.2
|
|
(1.0)
|
Acquisition and
integration cost
|
$0.1
|
$—
|
$0.1
|
|
$0.9
|
$(0.1)
|
$(0.4)
|
|
$0.2
|
|
$0.4
|
Total Other items,
net
|
$0.8
|
$(0.1)
|
$(1.5)
|
|
$—
|
$5.1
|
$0.7
|
|
$(0.8)
|
|
$5.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration
|
Q1'21
|
Q2'21
|
Q3'21
|
|
Q1'20
|
Q2'20
|
Q3'20
|
|
Q3'21
YTD
|
|
Q3'20
YTD
|
Cost of products
sold
|
$7.7
|
$7.3
|
$9.6
|
|
$6.9
|
$8.3
|
$5.5
|
|
$24.6
|
|
$20.7
|
SG&A
|
10.4
|
8.6
|
9.7
|
|
11.1
|
8.1
|
6.1
|
|
28.7
|
|
25.3
|
Research and
development
|
0.1
|
0.9
|
0.1
|
|
0.4
|
0.6
|
0.2
|
|
1.1
|
|
1.2
|
Other items,
net
|
0.1
|
—
|
0.1
|
|
0.9
|
(0.1)
|
(0.4)
|
|
0.2
|
|
0.4
|
Acquisition and
integration related items
|
$18.3
|
$16.8
|
$19.5
|
|
$19.3
|
$16.9
|
$11.4
|
|
$54.6
|
|
$47.6
|
Energizer
Holdings, Inc.
|
Supplemental
Schedules - Non-GAAP Reconciliations cont.
|
For the Quarter
and Nine Months Ended June 30, 2021
|
(In millions -
Unaudited)
|
|
|
Q3'21
|
|
Q2'21
|
|
Q1'21
|
|
Q4'20
|
|
LTM
6/30/21 (1)
|
|
Q3'20
|
Net earnings/(loss)
from continuing operations
|
$
|
20.8
|
|
|
$
|
(10.2)
|
|
|
$
|
67.1
|
|
|
$
|
(41.7)
|
|
|
$
|
36.0
|
|
|
$
|
29.0
|
|
Income tax
provision/(benefit)
|
2.8
|
|
|
(3.5)
|
|
|
20.2
|
|
|
(10.1)
|
|
|
9.4
|
|
|
9.9
|
|
Earnings/(loss)
before income taxes
|
23.6
|
|
|
(13.7)
|
|
|
87.3
|
|
|
(51.8)
|
|
|
45.4
|
|
|
38.9
|
|
Interest
expense
|
38.6
|
|
|
39.1
|
|
|
47.3
|
|
|
50.2
|
|
|
175.2
|
|
|
50.8
|
|
Loss on
extinguishment of debt
|
27.6
|
|
|
70.0
|
|
|
5.7
|
|
|
90.7
|
|
|
194.0
|
|
|
—
|
|
Depreciation &
Amortization
|
30.0
|
|
|
28.9
|
|
|
29.8
|
|
|
27.6
|
|
|
116.3
|
|
|
28.2
|
|
EBITDA
|
$
|
119.8
|
|
|
$
|
124.3
|
|
|
$
|
170.1
|
|
|
$
|
116.7
|
|
|
$
|
530.9
|
|
|
$
|
117.9
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition
and integration costs
|
19.5
|
|
|
16.8
|
|
|
18.3
|
|
|
20.4
|
|
|
75.0
|
|
|
11.4
|
|
Acquisition
earn out
|
1.2
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
2.3
|
|
|
—
|
|
Share-based
payments
|
3.9
|
|
|
5.4
|
|
|
4.0
|
|
|
3.3
|
|
|
16.6
|
|
|
5.3
|
|
Adjusted
EBITDA
|
$
|
144.4
|
|
|
$
|
147.6
|
|
|
$
|
192.4
|
|
|
$
|
140.4
|
|
|
$
|
624.8
|
|
|
$
|
134.6
|
|
|
|
(1)
|
LTM defined as the
latest 12 months for the period ending June 30,
2021.
|
|
|
|
|
Free Cash
Flow
|
Q3'21
YTD
|
|
Q3'20
YTD
|
Net cash from
operating activities from continuing operations
|
$
|
17.5
|
|
|
$
|
231.9
|
|
Capital
expenditures
|
(42.7)
|
|
|
(44.4)
|
|
Proceeds from sale of
assets
|
—
|
|
|
1.5
|
|
Free cash flow
from continuing operations - subtotal
|
$
|
(25.2)
|
|
|
$
|
189.0
|
|
Cash paid for
acquisition and integration expenses
|
42.0
|
|
|
27.3
|
|
Cash paid for
integration related capital expenditures
|
25.8
|
|
|
27.4
|
|
Adjusted Free cash
flow
|
$
|
42.6
|
|
|
$
|
243.7
|
|
|
|
|
|
|
|
|
|
Energizer
Holdings, Inc.
|
Supplemental
Schedules - Non-GAAP Reconciliations cont.
|
FY 2021
Outlook
|
(In millions -
Unaudited)
|
|
Fiscal Year 2021
Outlook Reconciliation - Adjusted earnings from continuing
operations and Adjusted diluted net earnings per common share -
continuing operations (EPS)
|
|
|
|
|
|
|
(in millions,
except per share data)
|
Net earnings
from
continuing operations
|
|
EPS from
continuing
operations
|
Fiscal Year 2021 -
GAAP Outlook
|
$103
|
to
|
$127
|
|
$1.26
|
to
|
$1.60
|
Impacts:
|
|
|
|
|
|
|
|
Acquisition and
integration costs, net of tax benefit
|
62
|
to
|
54
|
|
$0.90
|
to
|
0.77
|
Acquisition earn
out
|
3
|
|
2
|
|
$0.04
|
|
0.03
|
Loss on
extinguishment of debt
|
76
|
|
76
|
|
$1.10
|
|
1.10
|
Fiscal Year 2021 -
Adjusted Outlook
|
$244
|
to
|
$259
|
|
$3.30
|
to
|
$3.50
|
Fiscal Year 2021
Outlook Reconciliation - Adjusted EBITDA
|
(in millions,
except per share data)
|
|
|
|
Net earnings from
continuing operations
|
$103
|
to
|
$127
|
Income tax
provision
|
21
|
to
|
48
|
Earnings before
income taxes
|
$124
|
to
|
$175
|
Interest
expense
|
170
|
to
|
160
|
Loss on
extinguishment of debt
|
103
|
|
103
|
Amortization
|
62
|
to
|
60
|
Depreciation
|
57
|
to
|
54
|
EBITDA
|
$516
|
to
|
$552
|
|
|
|
|
Adjustments:
|
|
|
|
Integration
costs
|
80
|
to
|
70
|
Acquisition
earn out
|
4
|
to
|
3
|
Share-based
payments
|
20
|
|
15
|
Adjusted
EBITDA
|
$620
|
to
|
$640
|
|
Fiscal Year 2021
Outlook Reconciliation - Adjusted Free Cash Flow
|
(in millions,
except per share data)
|
|
|
|
Net cash from
operating activities
|
$207
|
to
|
$210
|
Less: Capital
expenditures
|
85
|
to
|
70
|
Free cash
flow
|
$122
|
to
|
$140
|
Adjustments:
|
|
|
|
Integration
costs
|
55
|
to
|
45
|
Integration related
capital expenditures
|
48
|
to
|
40
|
Adjusted free cash
flow
|
In excess
of $225
|
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SOURCE Energizer Holdings, Inc.