ST. LOUIS, Nov. 10, 2021 /PRNewswire/ -- Energizer
Holdings, Inc. (NYSE: ENR) today
announced results for the fourth fiscal quarter and full fiscal
year, which ended September 30, 2021.
"Elevated demand and distribution gains resulted in our sixth
consecutive year of organic growth," said Mark LaVigne, President and Chief Executive
Officer. "This growth, combined with synergy realizations
that partially offset rising input costs, delivered Adjusted
earnings per share of $3.48 in fiscal
2021. I am incredibly proud of the work that our team around
the world has done to succeed in delivering these results despite
the difficult operating environment we continue to face."
"Looking forward, we expect demand for our products to normalize
and inflationary pressures to persist throughout fiscal 2022. We
have executed or have planned pricing across 85% of our business
and will continue to evaluate additional pricing and cost reduction
efforts. As we navigate through this volatile macro
environment, we are focused on maintaining top-line momentum and
optimizing our cost structure enabling us to invest in our brands,
return cash to shareholders and pay down debt."
Top-Line Performance
For the fourth fiscal quarter, strong auto care performance
drove net sales growth. This was offset by battery declines as a
result of the COVID-19 elevated demand experienced in the prior
year fourth quarter. Net sales were $766.0
million for the fourth fiscal quarter compared to
$763.0 million in the prior year
period and $3,021.5 million for the
fiscal year compared to $2,744.8
million for the prior fiscal year.
|
|
Fourth
Quarter
|
|
%
Chg
|
|
Full Fiscal
Year
|
|
%
Chg
|
Net Sales -
FY'20
|
|
$
|
763.0
|
|
|
|
|
$
|
2,744.8
|
|
|
|
Organic
|
|
(5.8)
|
|
|
(0.8)
|
%
|
|
200.5
|
|
|
7.3
|
%
|
Impact of FY 2021
Acquisitions
|
|
1.8
|
|
|
0.2
|
%
|
|
27.0
|
|
|
1.0
|
%
|
Change in Argentina
operations
|
|
1.3
|
|
|
0.2
|
%
|
|
6.8
|
|
|
0.2
|
%
|
Impact of
currency
|
|
5.7
|
|
|
0.8
|
%
|
|
42.4
|
|
|
1.6
|
%
|
Net Sales -
FY'21
|
|
$
|
766.0
|
|
|
0.4
|
%
|
|
$
|
3,021.5
|
|
|
10.1
|
%
|
____________________
|
(1)
|
See Press Release
attachments and supplemental schedules for additional information,
including the GAAP to Non-GAAP reconciliations.
|
For the fiscal quarter, organic net sales decreased 0.8% due to
the following items: (1)
- Replenishment was down approximately 2.3% as the prior year
period was elevated due to increased battery demand and the timing
of orders;
- Distribution gains in both battery and auto contributed an
increase of approximately 0.9%; and
- Favorable pricing contributed approximately 0.6%.
For the fiscal year, organic net sales increased 7.3% due to the
following items: (1)
- New distribution in both segments and across all categories,
contributed approximately 3.9% of the increase;
- Increased year over year global demand contributed
approximately 2.6%, driven by higher battery sales earlier in the
fiscal year and increased auto care sales throughout the fiscal
year; and
- Favorable pricing contributed approximately 0.8% to the organic
increase.
Gross Margin
Gross margin percentage on a reported basis for the fourth
fiscal quarter was 36.5%, versus 36.9% in the prior year quarter,
and was 38.4% for fiscal 2021, versus 39.4% in the prior year.
Excluding the acquisition and integration costs in both years,
gross margin was 37.7% for the fourth fiscal quarter, down 70 basis
points from the prior year quarter, and was 39.6% for the fiscal
year, down 100 basis points from prior
year.(1)
|
|
Fourth
Quarter
|
|
Full Fiscal
Year
|
Adjusted Gross Margin
- FY'20 (1)
|
|
38.4
|
%
|
|
40.6
|
%
|
Product input
cost
|
|
(4.2)
|
%
|
|
(2.8)
|
%
|
Mix impact
|
|
(0.2)
|
%
|
|
(0.6)
|
%
|
Lower margin rate
profile of the FY 21 acquired businesses
|
|
(0.1)
|
%
|
|
(0.2)
|
%
|
Synergy
realization
|
|
1.3
|
%
|
|
1.8
|
%
|
Net reduction of FY20
COVID-19 cost impact
|
|
2.5
|
%
|
|
0.6
|
%
|
Currency
|
|
—
|
%
|
|
0.2
|
%
|
Adjusted Gross Margin
- FY'21 (1)
|
|
37.7
|
%
|
|
39.6
|
%
|
The Gross margin decrease for the quarter and fiscal year was
driven by higher input costs, including labor costs, commodities,
tariffs and transportation, consistent with ongoing inflationary
trends. Additionally, gross margin was negatively impacted by mix
as our auto care business, which has a lower gross margin
percentage, experienced strong organic growth in the quarter and
full fiscal year.
Partially offsetting these margin impacts were synergies of
approximately $9 million and
$50 million for the quarter and
fiscal year, respectively, and the net favorable impact of
eliminating incremental COVID-19 costs which impacted the prior
year.
Selling, General and Administrative expense
(SG&A)
SG&A, excluding acquisition and integration costs, for
the fourth fiscal quarter was 14.3% of net sales, or $109.4 million, as compared to 15.6% of net
sales, or $118.8 million, in the
prior year. The absolute dollar decrease of $9.4 million was primarily driven by a reduction
in compensation costs year over year.(1)
SG&A, excluding acquisition and integration costs, for
fiscal 2021 was $443.8 million, or
14.7% of net sales, as compared to $444.5
million, or 16.2% of net sales, in the prior year. The
decrease, as a percent of Net sales, was primarily driven by
synergy realization and higher net sales while SG&A expense
remained consistent with prior year.(1)
Advertising and promotion expense (A&P)
A&P was 5.4% of net sales for both the fourth fiscal quarter
and fiscal 2021. For the quarter, this was an increase of 10
basis points, or $1.1 million.
For fiscal 2021, spending was flat as a percentage of net sales
while absolute spending increased $15.0 million. The increase was 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
|
|
Fourth
Quarter
|
|
Full Fiscal
Year
|
(In millions, except
per share data)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net earnings/(loss)
from continuing operations
|
|
$
|
83.2
|
|
|
$
|
(41.7)
|
|
|
$
|
160.9
|
|
|
$
|
46.8
|
|
Diluted net
earnings/(loss) per common share - continuing operations
|
|
$
|
1.14
|
|
|
$
|
(0.67)
|
|
|
$
|
2.11
|
|
|
$
|
0.44
|
|
|
|
|
|
|
|
|
|
|
Adjusted net earnings
from continuing operations(1)
|
|
$
|
57.8
|
|
|
$
|
44.7
|
|
|
$
|
255.4
|
|
|
$
|
176.8
|
|
Adjusted diluted net
earnings per common share - continuing operations
(1)
|
|
$
|
0.79
|
|
|
$
|
0.59
|
|
|
$
|
3.48
|
|
|
$
|
2.31
|
|
Adjusted
EBITDA(1)
|
|
$
|
135.9
|
|
|
$
|
140.4
|
|
|
$
|
620.3
|
|
|
$
|
562.0
|
|
The Company took advantage of favorable debt markets and
refinanced its debt capital structure over the past 18
months. Interest expense decreased by $13.4 million and $33.2 million, respectively, for the quarter
and full fiscal year compared to the prior year, primarily as a
result of the refinancing activity.
For the quarter, Adjusted net earnings per share increased 34%
over the prior year due to a reduction in SG&A expense and
interest savings, driven by our debt refinancing. For the
full year, Adjusted net earnings per share increased 51% over the
prior year reflecting organic revenue growth, synergy realization,
reduction in incremental COVID-19 costs and interest savings,
partially offset by higher A&P in the current period.
Free Cash Flow and Continued Return of Capital
- Generated year-to-date cash flows from continuing operations of
$179.7 million, as compared to
$389.3 million in the prior year, and
Adjusted free cash flow from continuing operations of $203.5 million in the current year. Contributing
to the decrease was the expected impact of quarter-over-quarter
working capital changes, largely driven by an increase in inventory
levels. During the year, we took 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 one-time $30
million receipt of a valued added tax refund
settlement.(1)
- Paid dividends in the quarter of approximately $20 million, or $0.30 per common share and $4.1 million, or $1.875 per share of mandatory preferred
convertible stock. Dividend payments for the year were $83.9 million, or $1.20 per common share and $16.2 million, or $7.50 per share of mandatory preferred
convertible shares.
- Repurchased approximately 2 million shares of common stock in
the fiscal year. This included 1.5 million shares repurchased in
the fourth fiscal quarter under the $75
million Accelerated Share Repurchase (ASR) program the
Company entered into in August 2021.
The program will be completed in the first fiscal quarter of 2022
and approximately 1.9 million total shares are expected to be
repurchased.
Financial Outlook and Assumptions for Fiscal Year 2022
(1)
Our categories remain very healthy and have experienced solid
growth when compared to pre-pandemic levels. As we enter into
fiscal 2022, we are benefiting from significant pricing actions we
have executed, however input costs have continued to rise
dramatically. Looking specifically at our key metrics for fiscal
2022:
- We expect organic revenue to be roughly flat, with auto care
growth and pricing actions across all businesses offset by expected
declines in battery as we comp prior year elevated COVID-19 demand
in the first two fiscal quarters. We also expect reported revenue
will be negatively impacted by foreign currency headwinds of
$20 million to $25 million at current rates.
- Product input costs, including raw materials, labor and
transportation costs have risen rapidly over the past quarter.
While we expect the absolute dollar impact of these rising costs to
be offset by pricing actions and cost reduction efforts, we
anticipate gross margin headwinds of approximately 150 basis points
based on current rates and assumptions. These inflationary cost
pressures, combined with the anticipated volume declines in battery
in the first half of the year are expected to result in Adjusted
earnings per share in the range of $3.00 to $3.30 and
Adjusted EBITDA in the range of $560
million to $590 million. The
current operating environment remains very volatile and we will
remain focused on offsetting headwinds through additional pricing
and cost reduction opportunities in fiscal 2022.
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 fourth
quarter and fiscal 2021 financial results and the financial outlook
for fiscal 2022. 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/1192/42503
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.
# # #
Forward-Looking Statements.
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. 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)
|
|
|
Quarter Ended
September 30,
|
|
Twelve Months
Ended
September 30,
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
766.0
|
|
|
$
|
763.0
|
|
|
$
|
3,021.5
|
|
|
$
|
2,744.8
|
|
|
|
Cost of products sold
(1)
|
486.3
|
|
|
481.2
|
|
|
1,860.1
|
|
|
1,662.9
|
|
|
|
Gross
profit
|
279.7
|
|
|
281.8
|
|
|
1,161.4
|
|
|
1,081.9
|
|
|
|
Selling, general and
administrative expense (1)
|
121.8
|
|
|
132.3
|
|
|
487.2
|
|
|
483.3
|
|
|
|
Advertising and
promotion expense
|
41.3
|
|
|
40.2
|
|
|
162.1
|
|
|
147.1
|
|
|
|
Research and
development expense (1)
|
9.7
|
|
|
9.8
|
|
|
34.5
|
|
|
35.4
|
|
|
|
Amortization of
intangible assets
|
15.2
|
|
|
14.2
|
|
|
61.2
|
|
|
56.5
|
|
|
|
Interest
expense
|
36.8
|
|
|
50.2
|
|
|
161.8
|
|
|
195.0
|
|
|
|
Loss on
extinguishment of debt (2)
|
—
|
|
|
90.7
|
|
|
103.3
|
|
|
94.9
|
|
|
|
Other items, net
(1)
|
(2.1)
|
|
|
(3.8)
|
|
|
(2.9)
|
|
|
2.0
|
|
|
|
Earnings/(loss)
before income taxes
|
57.0
|
|
|
(51.8)
|
|
|
154.2
|
|
|
67.7
|
|
|
|
Income tax
(benefit)/provision
|
(26.2)
|
|
|
(10.1)
|
|
|
(6.7)
|
|
|
20.9
|
|
|
|
Net earnings/(loss)
from continuing operations
|
$
|
83.2
|
|
|
$
|
(41.7)
|
|
|
$
|
160.9
|
|
|
$
|
46.8
|
|
|
|
Net loss from
discontinued operations (3)
|
—
|
|
|
(9.8)
|
|
|
—
|
|
|
(140.1)
|
|
|
|
Net
earnings/(loss)
|
83.2
|
|
|
(51.5)
|
|
|
160.9
|
|
|
(93.3)
|
|
|
|
Mandatory preferred
stock dividends
|
(4.1)
|
|
|
(4.1)
|
|
|
(16.2)
|
|
|
(16.2)
|
|
|
|
Net earnings/(loss)
attributable to common shareholders
|
$
|
79.1
|
|
|
$
|
(55.6)
|
|
|
$
|
144.7
|
|
|
$
|
(109.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net
earnings/(loss) per common share - continuing operations
|
$
|
1.17
|
|
|
$
|
(0.67)
|
|
|
$
|
2.12
|
|
|
$
|
0.44
|
|
|
|
Basic net loss per
common share - discontinued operations
|
—
|
|
|
(0.14)
|
|
|
—
|
|
|
(2.03)
|
|
|
|
Basic net
earnings/(loss) per common share
|
$
|
1.17
|
|
|
$
|
(0.81)
|
|
|
$
|
2.12
|
|
|
$
|
(1.59)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net
earnings/(loss) per common share - continuing operations
|
$
|
1.14
|
|
|
$
|
(0.67)
|
|
|
$
|
2.11
|
|
|
$
|
0.44
|
|
|
|
Diluted net loss per
common share - discontinued operations
|
—
|
|
|
(0.14)
|
|
|
—
|
|
|
(2.02)
|
|
|
|
Diluted net
earnings/(loss) per common share
|
$
|
1.14
|
|
|
$
|
(0.81)
|
|
|
$
|
2.11
|
|
|
$
|
(1.58)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares of common stock - Basic
|
67.6
|
|
|
68.5
|
|
|
68.2
|
|
|
68.8
|
|
|
|
Weighted average
shares of common stock - Diluted
|
72.8
|
|
|
68.5
|
|
|
68.7
|
|
|
69.5
|
|
|
|
|
|
(1)
|
See the Supplemental
Schedules - Non-GAAP Reconciliation attached which breaks out the
Acquisition and integration related items included within these
lines.
|
(2)
|
The Loss on the
extinguishment of debt for the twelve months ended
September 30, 2021 relates the Company's redemption of the
€650 million Senior Notes due in 2026 in June 2021, the redemption
of the $600.0 million Senior Notes due in 2027 in January 2021 and
the term loan refinancing in December 2020. The quarter ended
September 30, 2020 relates to the Company's redemption of the
$750.0 million Senior Notes due in 2026 in September 2020 and the
redemption of the $600.0 million Senior Notes due in 2025 in
July 2020. The twelve months ended September 30, 2020 also 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 $141.6 million in the twelve
months ended September 30, 2020. The Net loss on discontinued
operations is net of income tax expense of $5.4 million and a
benefit of $1.2 million for the quarter and twelve months
ended September 30, 2020, respectively.
|
ENERGIZER
HOLDINGS, INC.
|
CONSOLIDATED
BALANCE SHEETS
|
(Condensed)
|
(In millions -
Unaudited)
|
|
|
|
SEPTEMBER
30,
|
|
|
2021
|
|
2020
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
238.9
|
|
|
$
|
459.8
|
|
Restricted
cash
|
|
—
|
|
|
790.0
|
|
Trade
receivables
|
|
292.9
|
|
|
292.0
|
|
Inventories
|
|
728.3
|
|
|
511.3
|
|
Other current
assets
|
|
179.4
|
|
|
157.8
|
|
Total current
assets
|
|
$
|
1,439.5
|
|
|
$
|
2,210.9
|
|
Property, plant and
equipment, net
|
|
382.9
|
|
|
352.1
|
|
Operating lease
asset
|
|
112.3
|
|
|
121.9
|
|
Goodwill
|
|
1,053.8
|
|
|
1,016.0
|
|
Other intangible
assets, net
|
|
1,871.3
|
|
|
1,909.0
|
|
Deferred tax
asset
|
|
21.7
|
|
|
24.3
|
|
Other
assets
|
|
126.0
|
|
|
94.1
|
|
Total
assets
|
|
$
|
5,007.5
|
|
|
$
|
5,728.3
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Current maturities of
long-term debt
|
|
$
|
12.0
|
|
|
$
|
841.3
|
|
Current portion of
capital leases
|
|
2.3
|
|
|
1.7
|
|
Notes
payable
|
|
105.0
|
|
|
3.8
|
|
Accounts
payable
|
|
454.8
|
|
|
378.1
|
|
Current operating
lease liabilities
|
|
15.5
|
|
|
14.8
|
|
Other current
liabilities
|
|
356.8
|
|
|
408.7
|
|
Total current
liabilities
|
|
$
|
946.4
|
|
|
$
|
1,648.4
|
|
Long-term
debt
|
|
3,333.4
|
|
|
3,306.9
|
|
Operating lease
liabilities
|
|
102.3
|
|
|
111.9
|
|
Deferred tax
liability
|
|
91.3
|
|
|
140.4
|
|
Other
liabilities
|
|
178.4
|
|
|
211.6
|
|
Total
liabilities
|
|
$
|
4,651.8
|
|
|
$
|
5,419.2
|
|
Shareholders'
equity
|
|
|
|
|
Common
stock
|
|
0.7
|
|
|
0.7
|
|
Mandatory convertible
preferred stock
|
|
—
|
|
|
—
|
|
Additional paid-in
capital
|
|
832.0
|
|
|
859.2
|
|
Retained
earnings
|
|
(5.0)
|
|
|
(66.2)
|
|
Treasury
stock
|
|
(241.6)
|
|
|
(176.9)
|
|
Accumulated other
comprehensive loss
|
|
(230.4)
|
|
|
(307.7)
|
|
Total shareholders'
equity
|
|
$
|
355.7
|
|
|
$
|
309.1
|
|
Total liabilities and
shareholders' equity
|
|
$
|
5,007.5
|
|
|
$
|
5,728.3
|
|
ENERGIZER
HOLDINGS, INC.
|
CONSOLIDATED
STATEMENT OF CASH FLOWS
|
(Condensed)
|
(In millions -
Unaudited)
|
|
|
FOR THE YEARS
ENDED
SEPTEMBER 30,
|
|
2021
|
|
2020
|
Cash Flow from
Operating Activities
|
|
|
|
Net
earnings/(loss)
|
$
|
160.9
|
|
|
$
|
(93.3)
|
|
Loss from discontinued
operations
|
—
|
|
|
(140.1)
|
|
Net earnings from
continuing operations
|
$
|
160.9
|
|
|
$
|
46.8
|
|
Adjustments
to reconcile net earnings to net cash flow from
operations:
|
|
|
|
Non-cash integration
and restructuring charges
|
8.9
|
|
|
17.8
|
|
Depreciation and
amortization
|
118.5
|
|
|
111.9
|
|
Deferred income
taxes
|
(62.9)
|
|
|
(34.8)
|
|
Share-based
compensation expense
|
10.2
|
|
|
24.5
|
|
Gain on sale of real
estate
|
(3.3)
|
|
|
—
|
|
Loss on extinguishment
on debt
|
103.3
|
|
|
94.9
|
|
Non-cash items
included in income, net
|
17.3
|
|
|
23.1
|
|
Other, net
|
(3.9)
|
|
|
(7.1)
|
|
Changes in
assets and liabilities used in operations, net of
acquisitions
|
|
|
|
Decrease in accounts
receivable, net
|
9.5
|
|
|
47.8
|
|
Increase in
inventories
|
(211.8)
|
|
|
(39.8)
|
|
(Increase)/decrease in
other current assets
|
(7.4)
|
|
|
53.4
|
|
Increase in accounts
payable
|
51.4
|
|
|
76.2
|
|
Decrease in other
current liabilities
|
(11.0)
|
|
|
(25.4)
|
|
Net cash from
operating activities from continuing operations
|
179.7
|
|
|
389.3
|
|
Net cash used by
operating activities from discontinued operations
|
—
|
|
|
(12.9)
|
|
Net cash from
operating activities
|
179.7
|
|
|
376.4
|
|
Cash Flow from
Investing Activities
|
|
|
|
Capital
expenditures
|
(64.9)
|
|
|
(65.3)
|
|
Proceeds from sale of
assets
|
5.7
|
|
|
6.4
|
|
Acquisitions, net of
cash acquired
|
(67.2)
|
|
|
(5.1)
|
|
Net cash used by
investing activities from continuing operations
|
(126.4)
|
|
|
(64.0)
|
|
Net cash from
investing activities from discontinued operations
|
—
|
|
|
280.9
|
|
Net cash (used
by)/from investing activities
|
(126.4)
|
|
|
216.9
|
|
Cash Flow from
Financing Activities
|
|
|
|
Cash proceeds from
issuance of debt with original maturities greater than 90
days
|
1,982.6
|
|
|
2,020.6
|
|
Payments on debt with
maturities greater than 90 days
|
(2,773.8)
|
|
|
(1,393.5)
|
|
Net
increase/(decrease) in debt with maturities 90 days or
less
|
102.1
|
|
|
(30.2)
|
|
Debt issuance
costs
|
(29.0)
|
|
|
(26.5)
|
|
Premiums paid on
extinguishment of debt
|
(141.1)
|
|
|
(18.3)
|
|
Dividends paid on
common stock
|
(83.9)
|
|
|
(85.4)
|
|
Dividends paid on
mandatory convertible preferred stock
|
(16.2)
|
|
|
(16.2)
|
|
Common stock
repurchased
|
(96.3)
|
|
|
(45.0)
|
|
Payment of contingent
consideration
|
(6.8)
|
|
|
—
|
|
Taxes paid for
withheld share-based payments
|
(6.7)
|
|
|
(11.3)
|
|
Net cash (used
by)/from financing activities from continuing operations
|
(1,069.1)
|
|
|
394.2
|
|
Net cash used by
financing activities from discontinued operations
|
—
|
|
|
(1.1)
|
|
Net cash (used
by)/from financing activities
|
(1,069.1)
|
|
|
393.1
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
4.9
|
|
|
4.9
|
|
Net
(decrease)/increase in cash, cash equivalents and restricted cash
from continuing operations
|
(1,010.9)
|
|
|
724.4
|
|
Net increase in cash,
cash equivalents, and restricted cash from discontinued
operations
|
—
|
|
|
266.9
|
|
Net
(decrease)/increase in cash, cash equivalents, and restricted
cash
|
(1,010.9)
|
|
|
991.3
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
1,249.8
|
|
|
258.5
|
|
Cash, cash
equivalents and restricted cash, end of period
|
$
|
238.9
|
|
|
$
|
1,249.8
|
|
ENERGIZER HOLDINGS,
INC.
Supplemental Schedules
Introduction to the
Reconciliation of GAAP and Non-GAAP Measures
For the
Quarter and Twelve Months ended September 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, loss on extinguishment
of debt and the one-time impact of the CARES Act and Tax
structuring. 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 method 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, loss on extinguishment of debt, other
items, net, and charges related to acquisition and integration 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,
the loss on extinguishment of debt, and the one-time impact of the
CARES ACT and Tax structuring.
Non-GAAP Tax Rate. This is the tax rate when excluding
the after tax impact of acquisition and integration, an acquisition
earn out and the loss on extinguishment of debt calculated
utilizing the statutory rate for where the costs were incurred, as
well as the one-time impact of the CARES Act and Tax
structuring.
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, operations in
Argentina, and the 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 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 the
acquisitions.
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 a 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 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. These
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, an acquisition earn out and
share-based payments.
Energizer Holdings,
Inc.
Supplemental Schedules - Segment Information and
Supplemental Sales Data
For the Quarter and Twelve Months
ended September 30, 2021
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 for the quarter
and twelve months ended September 30,
2021 and 2020, respectively, are presented below:
|
For the Quarter
Ended
September 30,
|
|
For the Twelve
Months Ended September 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net
Sales
|
|
|
|
|
|
|
|
Americas
|
$
|
561.5
|
|
|
$
|
554.9
|
|
|
$
|
2,155.3
|
|
|
$
|
1,971.2
|
|
International
|
204.5
|
|
|
208.1
|
|
|
866.2
|
|
|
773.6
|
|
Total net
sales
|
$
|
766.0
|
|
|
$
|
763.0
|
|
|
$
|
3,021.5
|
|
|
$
|
2,744.8
|
|
Segment
Profit
|
|
|
|
|
|
|
|
Americas
|
$
|
147.9
|
|
|
$
|
144.6
|
|
|
$
|
563.8
|
|
|
$
|
498.5
|
|
International
|
28.1
|
|
|
28.4
|
|
|
163.3
|
|
|
155.8
|
|
Total segment
profit
|
$
|
176.0
|
|
|
$
|
173.0
|
|
|
$
|
727.1
|
|
|
$
|
654.3
|
|
General corporate and
other expenses (1)
|
(24.7)
|
|
|
(29.8)
|
|
|
(96.0)
|
|
|
(103.8)
|
|
Global marketing
expense (2)
|
(13.2)
|
|
|
(9.1)
|
|
|
(41.9)
|
|
|
(28.2)
|
|
Research and development
expense - Adjusted (3)
|
(9.7)
|
|
|
(9.7)
|
|
|
(33.4)
|
|
|
(34.1)
|
|
Amortization of
intangible assets
|
(15.2)
|
|
|
(14.2)
|
|
|
(61.2)
|
|
|
(56.5)
|
|
Acquisition and
integration costs (4)
|
(14.3)
|
|
|
(20.4)
|
|
|
(68.9)
|
|
|
(68.0)
|
|
Acquisition earn out
(5)
|
(1.1)
|
|
|
—
|
|
|
(3.4)
|
|
|
—
|
|
Loss on extinguishment
of debt
|
—
|
|
|
(90.7)
|
|
|
(103.3)
|
|
|
(94.9)
|
|
Interest
expense
|
(36.8)
|
|
|
(50.2)
|
|
|
(161.8)
|
|
|
(195.0)
|
|
Other items, net -
Adjusted (6)
|
(4.0)
|
|
|
(0.7)
|
|
|
(3.0)
|
|
|
(6.1)
|
|
Total
earnings/(loss) before income taxes
|
$
|
57.0
|
|
|
$
|
(51.8)
|
|
|
$
|
154.2
|
|
|
$
|
67.7
|
|
|
|
(1)
|
Of this amount, $2.9
million were recorded in Cost of products sold for the twelve
months ended September 30, 2020 and the remainder was recorded in
SG&A in the Consolidated (Condensed) Statement of
Earnings.
|
(2)
|
The quarter and
twelve months ended September 30, 2021 includes $5.5 million
and $20.0 million recorded in SG&A respectively, and $7.7
million and $21.9 million recorded in A&P, respectively, on the
Consolidated (Condensed) Statement of Earnings. The quarter
and twelve months ended September 30, 2020 includes $3.6
million and $12.1 million recorded in SG&A respectively, and
$5.5 million and $16.1 million recorded in A&P, respectively,
on the Consolidated (Condensed) Statement of
Earnings.
|
(3)
|
Research and
development expense for the twelve months ended September 30,
2021 included $1.1 million and included $0.1 million and $1.3
million for the quarter and twelve months ended September 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 Reconciliation for where these charges are
recorded in unaudited Consolidated (Condensed) Statement of
Earnings.
|
(5)
|
This represents the
estimated earn out achieved through September 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:
|
For the Quarter
Ended
September 30,
|
|
For the Twelve
Months Ended
September 30,
|
Net
Sales
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Batteries
|
$
|
565.6
|
|
|
$
|
579.5
|
|
|
$
|
2,267.4
|
|
|
$
|
2,099.8
|
|
Auto Care
|
159.8
|
|
|
142.7
|
|
|
606.9
|
|
|
513.0
|
|
Lights, Licensing and
Other
|
40.6
|
|
|
40.8
|
|
|
147.2
|
|
|
132.0
|
|
Total Net
sales
|
$
|
766.0
|
|
|
$
|
763.0
|
|
|
$
|
3,021.5
|
|
|
$
|
2,744.8
|
|
Energizer Holdings,
Inc.
Supplemental Schedules - GAAP EPS to Adjusted EPS
Reconciliation
For the Quarter and Twelve Months ended
September 30, 2021
(In millions, except for 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
September 30,
|
|
For the Twelve
Months Ended
September 30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net earnings/(loss)
attributable to common shareholders
|
|
$
|
79.1
|
|
|
$
|
(55.6)
|
|
|
$
|
144.7
|
|
|
$
|
(109.5)
|
|
Mandatory preferred
stock dividends
|
|
(4.1)
|
|
|
(4.1)
|
|
|
(16.2)
|
|
|
(16.2)
|
|
Net
earnings/(loss)
|
|
83.2
|
|
|
(51.5)
|
|
|
160.9
|
|
|
(93.3)
|
|
Net loss from
discontinued operations, net of tax
|
|
—
|
|
|
(9.8)
|
|
|
—
|
|
|
(140.1)
|
|
Net earnings/(loss)
from continuing operations
|
|
$
|
83.2
|
|
|
$
|
(41.7)
|
|
|
$
|
160.9
|
|
|
$
|
46.8
|
|
Pre-tax
adjustments
|
|
|
|
|
|
|
|
|
Acquisition and
integration (1)
|
|
$
|
14.3
|
|
|
$
|
20.4
|
|
|
$
|
68.9
|
|
|
$
|
68.0
|
|
Acquisition earn
out
|
|
1.1
|
|
|
—
|
|
|
3.4
|
|
|
—
|
|
Loss on
extinguishment of debt
|
|
—
|
|
|
90.7
|
|
|
103.3
|
|
|
94.9
|
|
Total
adjustments, pre-tax
|
|
$
|
15.4
|
|
|
$
|
111.1
|
|
|
$
|
175.6
|
|
|
$
|
162.9
|
|
After tax
adjustments
|
|
|
|
|
|
|
|
|
Acquisition and
integration
|
|
$
|
12.2
|
|
|
$
|
19.9
|
|
|
$
|
54.3
|
|
|
$
|
55.2
|
|
Acquisition earn
out
|
|
0.9
|
|
|
—
|
|
|
2.6
|
|
|
—
|
|
Loss on
extinguishment of debt
|
|
—
|
|
|
69.8
|
|
|
76.1
|
|
|
73.0
|
|
Tax
structuring
|
|
(38.5)
|
|
|
—
|
|
|
(38.5)
|
|
|
—
|
|
One-time impact of
the CARES Act
|
|
—
|
|
|
(3.3)
|
|
|
—
|
|
|
1.8
|
|
Total adjustments, after tax
|
|
$
|
(25.4)
|
|
|
$
|
86.4
|
|
|
$
|
94.5
|
|
|
$
|
130.0
|
|
Adjusted net earnings
from continuing operations (2)
|
|
$
|
57.8
|
|
|
$
|
44.7
|
|
|
$
|
255.4
|
|
|
$
|
176.8
|
|
Diluted net
earnings/(loss) per common share - continuing operations
|
|
$
|
1.14
|
|
|
$
|
(0.67)
|
|
|
$
|
2.11
|
|
|
$
|
0.44
|
|
Adjustments
|
|
|
|
|
|
|
|
|
Acquisition and
integration
|
|
0.17
|
|
|
0.29
|
|
|
0.79
|
|
|
0.79
|
|
Acquisition earn
out
|
|
0.01
|
|
|
—
|
|
|
0.03
|
|
|
—
|
|
Loss on
extinguishment of debt
|
|
—
|
|
|
1.01
|
|
|
1.11
|
|
|
1.05
|
|
Tax
structuring
|
|
(0.53)
|
|
|
—
|
|
|
(0.56)
|
|
|
—
|
|
One-time impact of
the CARES Act
|
|
—
|
|
|
(0.05)
|
|
|
—
|
|
|
0.03
|
|
Impact for diluted
share calculation (3)
|
|
—
|
|
|
0.01
|
|
|
—
|
|
|
—
|
|
Adjusted diluted net
earnings per diluted common share - continuing
operations
|
|
$
|
0.79
|
|
|
$
|
0.59
|
|
|
$
|
3.48
|
|
|
$
|
2.31
|
|
Weighted average
shares of common stock - Diluted
|
|
72.8
|
|
|
68.5
|
|
|
68.7
|
|
|
69.5
|
|
Adjusted Weighted
average shares of common stock - Diluted (3)
|
|
72.8
|
|
|
69.4
|
|
|
68.7
|
|
|
69.5
|
|
|
|
(1)
|
See Supplemental
Schedules - Non-GAAP Reconciliation for where these costs are
recorded on the unaudited Consolidated (Condensed) Statement of
Earnings.
|
(2)
|
The Effective tax
rate for the Adjusted - Non-GAAP Net Earnings and Diluted EPS for
the quarters ended September 30, 2021 and 2020 was 20.2% and
24.6%, respectively, and for the twelve months ended
September 30, 2021 and 2020 was 22.6% and 23.3%, respectively,
as calculated utilizing the statutory rate for where the costs were
incurred.
|
(3)
|
For the quarter ended
September 30, 2021, the diluted net earnings per common share is
assuming the conversion of the mandatory convertible preferred
stock to 4.7 million shares of common stock and excluding the
mandatory preferred stock dividends from net earnings. For the year
ended September 30, 2021 and both the quarter and year ended
September 30, 2020, the Adjusted Weighted average shares of common
stock - Diluted includes the dilutive impact of our outstanding
performance shares and restricted stock as they are dilutive to the
calculation.
|
Energizer
Holdings, Inc.
|
Supplemental
Schedules - Segment Sales
|
For the Quarter
and Twelve Months Ended September 30, 2021
|
(In millions,
except per share data - Unaudited)
|
|
Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
Q1'21
|
|
%
Chg
|
|
Q2'21
|
|
%
Chg
|
|
Q3'21
|
|
%
Chg
|
|
Q4'21
|
|
%
Chg
|
|
FY
'21
|
|
%
Chg
|
Net sales - prior
year
|
$
|
514.5
|
|
|
|
|
$
|
409.9
|
|
|
|
|
$
|
491.9
|
|
|
|
|
$
|
554.9
|
|
|
|
|
$
|
1,971.2
|
|
|
|
Organic
|
65.9
|
|
|
12.8
|
%
|
|
64.0
|
|
|
15.6
|
%
|
|
23.2
|
|
|
4.7
|
%
|
|
2.4
|
|
|
0.4
|
%
|
|
155.5
|
|
|
7.9
|
%
|
Impact of FY21
Acquisition
|
7.3
|
|
|
1.4
|
%
|
|
7.6
|
|
|
1.9
|
%
|
|
3.6
|
|
|
0.7
|
%
|
|
0.4
|
|
|
0.1
|
%
|
|
18.9
|
|
|
1.0
|
%
|
Change in Argentina
operations
|
2.8
|
|
|
0.5
|
%
|
|
0.8
|
|
|
0.2
|
%
|
|
1.9
|
|
|
0.4
|
%
|
|
1.3
|
|
|
0.2
|
%
|
|
6.8
|
|
|
0.3
|
%
|
Impact of
currency
|
(3.9)
|
|
|
(0.7)
|
%
|
|
(0.3)
|
|
|
(0.1)
|
%
|
|
4.6
|
|
|
1.0
|
%
|
|
2.5
|
|
|
0.5
|
%
|
|
2.9
|
|
|
0.1
|
%
|
Net sales -
current year
|
$
|
586.6
|
|
|
14.0
|
%
|
|
$
|
482.0
|
|
|
17.6
|
%
|
|
$
|
525.2
|
|
|
6.8
|
%
|
|
$
|
561.5
|
|
|
1.2
|
%
|
|
$
|
2,155.3
|
|
|
9.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales - prior
year
|
$
|
222.3
|
|
|
|
|
$
|
177.1
|
|
|
|
|
$
|
166.1
|
|
|
|
|
$
|
208.1
|
|
|
|
|
$
|
773.6
|
|
|
|
Organic
|
27.4
|
|
|
12.3
|
%
|
|
10.7
|
|
|
6.0
|
%
|
|
15.1
|
|
|
9.1
|
%
|
|
(8.2)
|
|
|
(3.9)
|
%
|
|
45.0
|
|
|
5.8
|
%
|
Impact of FY21
Acquisition
|
2.3
|
|
|
1.0
|
%
|
|
3.1
|
|
|
1.8
|
%
|
|
1.3
|
|
|
0.8
|
%
|
|
1.4
|
|
|
0.7
|
%
|
|
8.1
|
|
|
1.0
|
%
|
Impact of
currency
|
10.0
|
|
|
4.6
|
%
|
|
12.2
|
|
|
6.9
|
%
|
|
14.1
|
|
|
8.5
|
%
|
|
3.2
|
|
|
1.5
|
%
|
|
39.5
|
|
|
5.2
|
%
|
Net sales -
current year
|
$
|
262.0
|
|
|
17.9
|
%
|
|
$
|
203.1
|
|
|
14.7
|
%
|
|
$
|
196.6
|
|
|
18.4
|
%
|
|
$
|
204.5
|
|
|
(1.7)
|
%
|
|
$
|
866.2
|
|
|
12.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales - prior
year
|
$
|
736.8
|
|
|
|
|
$
|
587.0
|
|
|
|
|
$
|
658.0
|
|
|
|
|
$
|
763.0
|
|
|
|
|
$
|
2,744.8
|
|
|
|
Organic
|
93.3
|
|
|
12.7
|
%
|
|
74.7
|
|
|
12.7
|
%
|
|
38.3
|
|
|
5.8
|
%
|
|
(5.8)
|
|
|
(0.8)
|
%
|
|
200.5
|
|
|
7.3
|
%
|
Impact of FY21
Acquisition
|
9.6
|
|
|
1.3
|
%
|
|
10.7
|
|
|
1.8
|
%
|
|
4.9
|
|
|
0.7
|
%
|
|
1.8
|
|
|
0.2
|
%
|
|
27.0
|
|
|
1.0
|
%
|
Change in Argentina
operations
|
2.8
|
|
|
0.4
|
%
|
|
0.8
|
|
|
0.1
|
%
|
|
1.9
|
|
|
0.3
|
%
|
|
1.3
|
|
|
0.2
|
%
|
|
6.8
|
|
|
0.2
|
%
|
Impact of
currency
|
6.1
|
|
|
0.8
|
%
|
|
11.9
|
|
|
2.1
|
%
|
|
18.7
|
|
|
2.9
|
%
|
|
5.7
|
|
|
0.8
|
%
|
|
42.4
|
|
|
1.6
|
%
|
Net sales -
current year
|
$
|
848.6
|
|
|
15.2
|
%
|
|
$
|
685.1
|
|
|
16.7
|
%
|
|
$
|
721.8
|
|
|
9.7
|
%
|
|
$
|
766.0
|
|
|
0.4
|
%
|
|
$
|
3,021.5
|
|
|
10.1
|
%
|
Energizer
Holdings, Inc.
|
Supplemental
Schedules - Segment Profit
|
For the Quarter
and Twelve Months Ended September 30, 2021
|
(In millions,
except per share data - Unaudited)
|
|
Segment
Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
Q1'21
|
|
%
Chg
|
|
Q2'21
|
|
%
Chg
|
|
Q3'21
|
|
%
Chg
|
|
Q4'21
|
|
%
Chg
|
|
FY
'21
|
|
%
Chg
|
Segment Profit -
prior year
|
$
|
129.2
|
|
|
|
|
$
|
101.8
|
|
|
|
|
$
|
122.9
|
|
|
|
|
$
|
144.6
|
|
|
|
|
$
|
498.5
|
|
|
|
Organic
|
25.8
|
|
|
20.0
|
%
|
|
29.8
|
|
|
29.3
|
%
|
|
3.2
|
|
|
2.6
|
%
|
|
2.5
|
|
|
1.7
|
%
|
|
61.3
|
|
|
12.3
|
%
|
Impact of FY 2021
Acquisition
|
1.1
|
|
|
0.9
|
%
|
|
1.5
|
|
|
1.5
|
%
|
|
0.4
|
|
|
0.3
|
%
|
|
(0.7)
|
|
|
(0.5)
|
%
|
|
2.3
|
|
|
0.5
|
%
|
Change in Argentina
operations
|
2.3
|
|
|
1.8
|
%
|
|
0.8
|
|
|
0.8
|
%
|
|
1.2
|
|
|
1.0
|
%
|
|
1.5
|
|
|
1.0
|
%
|
|
5.8
|
|
|
1.2
|
%
|
Impact of
currency
|
(2.5)
|
|
|
(2.0)
|
%
|
|
(1.6)
|
|
|
(1.6)
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
0.1
|
%
|
|
(4.1)
|
|
|
(0.9)
|
%
|
Segment Profit -
current year
|
$
|
155.9
|
|
|
20.7
|
%
|
|
$
|
132.3
|
|
|
30.0
|
%
|
|
$
|
127.7
|
|
|
3.9
|
%
|
|
$
|
147.9
|
|
|
2.3
|
%
|
|
$
|
563.8
|
|
|
13.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit -
prior year
|
$
|
52.2
|
|
|
|
|
$
|
40.4
|
|
|
|
|
$
|
34.8
|
|
|
|
|
$
|
28.4
|
|
|
|
|
$
|
155.8
|
|
|
|
Organic
|
0.7
|
|
|
1.3
|
%
|
|
(6.0)
|
|
|
(14.9)
|
%
|
|
(5.2)
|
|
|
(14.9)
|
%
|
|
(0.4)
|
|
|
(1.4)
|
%
|
|
(10.9)
|
|
|
(7.0)
|
%
|
Impact of FY 2021
Acquisition
|
0.2
|
|
|
0.4
|
%
|
|
0.3
|
|
|
0.7
|
%
|
|
(0.1)
|
|
|
(0.3)
|
%
|
|
(0.2)
|
|
|
(0.7)
|
%
|
|
0.2
|
|
|
0.1
|
%
|
Impact of
currency
|
6.7
|
|
|
12.9
|
%
|
|
4.9
|
|
|
12.2
|
%
|
|
6.3
|
|
|
18.1
|
%
|
|
0.3
|
|
|
1.0
|
%
|
|
18.2
|
|
|
11.7
|
%
|
Segment Profit -
current year
|
$
|
59.8
|
|
|
14.6
|
%
|
|
$
|
39.6
|
|
|
(2.0)
|
%
|
|
$
|
35.8
|
|
|
2.9
|
%
|
|
$
|
28.1
|
|
|
(1.1)
|
%
|
|
$
|
163.3
|
|
|
4.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Segment
Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit -
prior year
|
$
|
181.4
|
|
|
|
|
$
|
142.2
|
|
|
|
|
$
|
157.7
|
|
|
|
|
$
|
173.0
|
|
|
|
|
$
|
654.3
|
|
|
|
Organic
|
26.5
|
|
|
14.6
|
%
|
|
23.8
|
|
|
16.7
|
%
|
|
(2.0)
|
|
|
(1.3)
|
%
|
|
2.1
|
|
|
1.2
|
%
|
|
50.4
|
|
|
7.7
|
%
|
Impact of FY 2021
Acquisition
|
1.3
|
|
|
0.7
|
%
|
|
1.8
|
|
|
1.3
|
%
|
|
0.3
|
|
|
0.2
|
%
|
|
(0.9)
|
|
|
(0.5)
|
%
|
|
2.5
|
|
|
0.4
|
%
|
Change in Argentina
operations
|
2.3
|
|
|
1.3
|
%
|
|
0.8
|
|
|
0.6
|
%
|
|
1.2
|
|
|
0.8
|
%
|
|
1.5
|
|
|
0.9
|
%
|
|
5.8
|
|
|
0.9
|
%
|
Impact of
currency
|
4.2
|
|
|
2.3
|
%
|
|
3.3
|
|
|
2.3
|
%
|
|
6.3
|
|
|
4.0
|
%
|
|
0.3
|
|
|
0.1
|
%
|
|
14.1
|
|
|
2.1
|
%
|
Segment Profit -
current year
|
$
|
215.7
|
|
|
18.9
|
%
|
|
$
|
171.9
|
|
|
20.9
|
%
|
|
$
|
163.5
|
|
|
3.7
|
%
|
|
$
|
176.0
|
|
|
1.7
|
%
|
|
$
|
727.1
|
|
|
11.1
|
%
|
Energizer
Holdings, Inc.
|
Supplemental
Schedules - Non-GAAP Reconciliations
|
For the Quarter
and Twelve Months Ended September 30, 2021
|
(In millions,
except per share data - Unaudited)
|
|
Gross
Profit
|
Q1'21
|
Q2'21
|
Q3'21
|
Q4'21
|
|
Q1'20
|
Q2'20
|
Q3'20
|
Q4'20
|
Q3'20
|
2021
|
2020
|
Net Sales
|
$
|
848.6
|
|
$
|
685.1
|
|
$
|
721.8
|
|
$
|
766.0
|
|
|
$
|
736.8
|
|
$
|
587.0
|
|
$
|
658.0
|
|
$
|
763.0
|
|
|
$
|
3,021.5
|
|
$
|
2,744.8
|
|
Cost of products sold
- adjusted
|
503.0
|
|
407.3
|
|
438.9
|
|
477.2
|
|
|
428.6
|
|
343.1
|
|
389.3
|
|
469.9
|
|
|
1,826.4
|
|
1,630.9
|
|
Adjusted Gross
Profit
|
$
|
345.6
|
|
$
|
277.8
|
|
$
|
282.9
|
|
$
|
288.8
|
|
|
$
|
308.2
|
|
$
|
243.9
|
|
$
|
268.7
|
|
$
|
293.1
|
|
|
$
|
1,195.1
|
|
$
|
1,113.9
|
|
Adjusted Gross
Margin
|
40.7
|
%
|
40.5
|
%
|
39.2
|
%
|
37.7
|
%
|
|
41.8
|
%
|
41.6
|
%
|
40.8
|
%
|
38.4
|
%
|
|
39.6
|
%
|
40.6
|
%
|
Acquisition and
integration costs
|
7.7
|
|
7.3
|
|
9.6
|
|
9.1
|
|
|
6.9
|
|
8.3
|
|
5.5
|
|
11.3
|
|
|
33.7
|
|
32.0
|
|
Reported Cost of
products sold
|
510.7
|
|
414.6
|
|
448.5
|
|
486.3
|
|
|
435.5
|
|
351.4
|
|
394.8
|
|
481.2
|
|
|
1,860.1
|
|
1,662.9
|
|
Reported Gross
Profit
|
$
|
337.9
|
|
$
|
270.5
|
|
$
|
273.3
|
|
$
|
279.7
|
|
|
$
|
301.3
|
|
$
|
235.6
|
|
$
|
263.2
|
|
$
|
281.8
|
|
|
$
|
1,161.4
|
|
$
|
1,081.9
|
|
Reported Gross
Margin
|
39.8
|
%
|
39.5
|
%
|
37.9
|
%
|
36.5
|
%
|
|
40.9
|
%
|
40.1
|
%
|
40.0
|
%
|
36.9
|
%
|
|
38.4
|
%
|
39.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SG&A
|
Q1'21
|
Q2'21
|
Q3'21
|
Q4'21
|
|
Q1'20
|
Q2'20
|
Q3'20
|
Q4'20
|
|
2021
|
2020
|
Segment
SG&A
|
$
|
84.9
|
|
$
|
82.8
|
|
$
|
79.7
|
|
$
|
80.5
|
|
|
$
|
84.1
|
|
$
|
82.4
|
|
$
|
78.5
|
|
$
|
86.8
|
|
|
$
|
327.9
|
|
$
|
331.8
|
|
Corporate
SG&A
|
23.9
|
|
26.6
|
|
22.0
|
|
23.5
|
|
|
24.0
|
|
23.0
|
|
25.2
|
|
28.4
|
|
|
96.0
|
|
100.6
|
|
Global
Marketing
|
4.9
|
|
4.7
|
|
4.9
|
|
5.4
|
|
|
2.9
|
|
2.6
|
|
3.0
|
|
3.6
|
|
|
19.9
|
|
12.1
|
|
SG&A Adjusted
- subtotal
|
$
|
113.7
|
|
$
|
114.1
|
|
$
|
106.6
|
|
$
|
109.4
|
|
|
$
|
111.0
|
|
$
|
108.0
|
|
$
|
106.7
|
|
$
|
118.8
|
|
|
$
|
443.8
|
|
$
|
444.5
|
|
SG&A Adjusted
% of Net Sales
|
13.4
|
%
|
16.7
|
%
|
14.8
|
%
|
14.3
|
%
|
|
15.1
|
%
|
18.4
|
%
|
16.2
|
%
|
15.6
|
%
|
|
14.7
|
%
|
16.2
|
%
|
Acquisition and
integration costs
|
10.4
|
|
8.6
|
|
9.7
|
|
11.3
|
|
|
11.1
|
|
8.1
|
|
6.1
|
|
13.5
|
|
|
40.0
|
|
38.8
|
|
Acquisition earn
out
|
—
|
|
1.1
|
|
1.2
|
|
1.1
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
3.4
|
|
—
|
|
Reported
SG&A
|
$
|
124.1
|
|
$
|
123.8
|
|
$
|
117.5
|
|
$
|
121.8
|
|
|
$
|
122.1
|
|
$
|
116.1
|
|
$
|
112.8
|
|
$
|
132.3
|
|
|
$
|
487.2
|
|
$
|
483.3
|
|
Reported SG&A
% of Net Sales
|
14.6
|
%
|
18.1
|
%
|
16.3
|
%
|
15.9
|
%
|
|
16.6
|
%
|
19.8
|
%
|
17.1
|
%
|
17.3
|
%
|
|
16.1
|
%
|
17.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other items,
net
|
Q1'21
|
Q2'21
|
Q3'21
|
Q4'21
|
|
Q1'20
|
Q2'20
|
Q3'20
|
Q4'20
|
|
2021
|
2020
|
Interest
income
|
$
|
(0.1)
|
|
$
|
(0.2)
|
|
$
|
(0.2)
|
|
$
|
(0.2)
|
|
|
$
|
(0.1)
|
|
$
|
(0.1)
|
|
$
|
(0.2)
|
|
$
|
(0.2)
|
|
|
$
|
(0.7)
|
|
$
|
(0.6)
|
|
Foreign currency
exchange loss/(gain)
|
1.3
|
|
0.5
|
|
(0.9)
|
|
4.6
|
|
|
(0.4)
|
|
5.5
|
|
2.9
|
|
0.7
|
|
|
5.5
|
|
8.7
|
|
Pension benefit other
than service costs
|
(0.5)
|
|
(0.5)
|
|
(0.6)
|
|
(0.3)
|
|
|
(0.5)
|
|
(0.5)
|
|
(0.5)
|
|
(0.2)
|
|
|
(1.9)
|
|
(1.7)
|
|
Other
|
—
|
|
0.1
|
|
0.1
|
|
(0.1)
|
|
|
0.1
|
|
0.3
|
|
(1.1)
|
|
0.4
|
|
|
0.1
|
|
(0.3)
|
|
Adjusted Other
items, net
|
0.7
|
|
(0.1)
|
|
(1.6)
|
|
4.0
|
|
|
(0.9)
|
|
5.2
|
|
1.1
|
|
0.7
|
|
|
3.0
|
|
6.1
|
|
Acquisition foreign
currency loss
|
—
|
|
—
|
|
—
|
|
—
|
|
|
2.2
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
2.2
|
|
Transition services
agreement income
|
—
|
|
—
|
|
—
|
|
—
|
|
|
(0.3)
|
|
(0.1)
|
|
(0.4)
|
|
(0.1)
|
|
|
—
|
|
(0.9)
|
|
Gain on sale of
assets
|
—
|
|
—
|
|
—
|
|
(3.3)
|
|
|
(1.0)
|
|
—
|
|
—
|
|
—
|
|
|
(3.3)
|
|
(1.0)
|
|
Pre-acquisition
insurance proceeds
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
(4.9)
|
|
|
—
|
|
(4.9)
|
|
Other
|
0.1
|
|
—
|
|
0.1
|
|
(2.8)
|
|
|
—
|
|
—
|
|
—
|
|
0.5
|
|
|
(2.6)
|
|
0.5
|
|
Acquisition and
integration cost
|
0.1
|
|
—
|
|
0.1
|
|
(6.1)
|
|
|
0.9
|
|
(0.1)
|
|
(0.4)
|
|
(4.5)
|
|
|
(5.9)
|
|
(4.1)
|
|
Total Other items,
net Reported
|
$
|
0.8
|
|
$
|
(0.1)
|
|
$
|
(1.5)
|
|
$
|
(2.1)
|
|
|
$
|
—
|
|
$
|
5.1
|
|
$
|
0.7
|
|
$
|
(3.8)
|
|
|
$
|
(2.9)
|
|
$
|
2.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration
|
Q1'21
|
Q2'21
|
Q3'21
|
Q4'21
|
|
Q1'20
|
Q2'20
|
Q3'20
|
Q4'20
|
|
2021
|
2020
|
Cost of products
sold
|
$
|
7.7
|
|
$
|
7.3
|
|
$
|
9.6
|
|
$
|
9.1
|
|
|
$
|
6.9
|
|
$
|
8.3
|
|
$
|
5.5
|
|
$
|
11.3
|
|
|
$
|
33.7
|
|
$
|
32.0
|
|
SG&A
|
10.4
|
|
8.6
|
|
9.7
|
|
11.3
|
|
|
11.1
|
|
8.1
|
|
6.1
|
|
13.5
|
|
|
40.0
|
|
38.8
|
|
Research and
development
|
0.1
|
|
0.9
|
|
0.1
|
|
—
|
|
|
0.4
|
|
0.6
|
|
0.2
|
|
0.1
|
|
|
1.1
|
|
1.3
|
|
Other items,
net
|
0.1
|
|
—
|
|
0.1
|
|
(6.1)
|
|
|
0.9
|
|
(0.1)
|
|
(0.4)
|
|
(4.5)
|
|
|
(5.9)
|
|
(4.1)
|
|
Acquisition and
integration related items
|
$
|
18.3
|
|
$
|
16.8
|
|
$
|
19.5
|
|
$
|
14.3
|
|
|
$
|
19.3
|
|
$
|
16.9
|
|
$
|
11.4
|
|
$
|
20.4
|
|
|
$
|
68.9
|
|
$
|
68.0
|
|
Energizer
Holdings, Inc.
|
Supplemental
Schedules - Non-GAAP Reconciliations cont.
|
For the Quarter
and Twelve Months Ended September 30, 2021
|
(In millions,
except per share data - Unaudited)
|
|
|
Q1'21
|
|
Q2'21
|
|
Q3'21
|
|
Q4'21
|
|
FY
2021
|
Net earnings/(loss)
from continuing operations
|
$
|
67.1
|
|
|
$
|
(10.2)
|
|
|
$
|
20.8
|
|
|
$
|
83.2
|
|
|
$
|
160.9
|
|
Income tax
provision/(benefit)
|
20.2
|
|
|
(3.5)
|
|
|
2.8
|
|
|
(26.2)
|
|
|
(6.7)
|
|
Earnings/(loss)
before income taxes
|
87.3
|
|
|
(13.7)
|
|
|
23.6
|
|
|
57.0
|
|
|
154.2
|
|
Interest
expense
|
47.3
|
|
|
39.1
|
|
|
38.6
|
|
|
36.8
|
|
|
161.8
|
|
Loss on
extinguishment of debt
|
5.7
|
|
|
70.0
|
|
|
27.6
|
|
|
—
|
|
|
103.3
|
|
Depreciation &
Amortization
|
29.8
|
|
|
28.9
|
|
|
30.0
|
|
|
29.8
|
|
|
118.5
|
|
EBITDA
|
170.1
|
|
|
124.3
|
|
|
119.8
|
|
|
123.6
|
|
|
537.8
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration costs
|
18.3
|
|
|
16.8
|
|
|
19.5
|
|
|
14.3
|
|
|
68.9
|
|
Acquisition earn
out
|
—
|
|
|
1.1
|
|
|
1.2
|
|
|
1.1
|
|
|
3.4
|
|
Share-based
payments
|
4.0
|
|
|
5.4
|
|
|
3.9
|
|
|
(3.1)
|
|
|
10.2
|
|
Adjusted
EBITDA
|
$
|
192.4
|
|
|
$
|
147.6
|
|
|
$
|
144.4
|
|
|
$
|
135.9
|
|
|
$
|
620.3
|
|
Free Cash
Flow
|
2021
|
|
2020
|
Net cash from
operating activities
|
$
|
179.7
|
|
|
$
|
389.3
|
|
Capital
expenditures
|
(64.9)
|
|
|
(65.3)
|
|
Proceeds from sale of
assets
|
5.7
|
|
|
6.4
|
|
Free Cash Flow -
subtotal
|
$
|
120.5
|
|
|
$
|
330.4
|
|
Cash paid for
acquisition and integration expenses (1)
|
48.3
|
|
|
33.7
|
|
Cash paid for
integration related capital expenditures
|
34.7
|
|
|
41.0
|
|
Adjusted Free Cash
Flow
|
$
|
203.5
|
|
|
$
|
405.1
|
|
|
|
(1)
|
These expenses
include financing costs, success fees, consulting and legal costs
incurred to complete the acquisition, as well as integration costs
incurred since the acquisition.
|
Energizer
Holdings, Inc.
|
Supplemental
Schedules - Non-GAAP Reconciliations cont.
|
Fiscal 2022
Outlook
|
(In millions,
except per share data - Unaudited)
|
|
Fiscal Year 2022
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
|
|
EPS
|
Fiscal Year 2022 -
GAAP Outlook
|
$198
|
to
|
$225
|
|
$2.77
|
to
|
$3.13
|
Impacts:
|
|
|
|
|
|
|
|
Acquisition earn
out
|
1
|
|
1
|
|
0.01
|
|
0.01
|
Acquisition
and integration costs, net of tax benefit
|
16
|
to
|
12
|
|
0.22
|
to
|
0.16
|
|
|
|
|
|
|
Fiscal Year 2022 -
Adjusted Outlook
|
$215
|
to
|
$238
|
|
$3.00
|
to
|
$3.30
|
Fiscal Year 2022
Outlook Reconciliation - Adjusted EBITDA
|
(in millions,
except per share data)
|
|
|
|
Net earnings from
continuing operations
|
$198
|
to
|
$225
|
Income tax
provision
|
41
|
to
|
69
|
Earnings before
income taxes
|
$239
|
to
|
$294
|
Interest
expense
|
150
|
to
|
145
|
Amortization
|
65
|
to
|
60
|
Depreciation
|
65
|
to
|
60
|
EBITDA
|
$519
|
to
|
$559
|
|
|
|
|
Adjustments:
|
|
|
|
Integration
costs
|
20
|
to
|
15
|
Acquisition earn
out
|
1
|
|
1
|
Share-based
payments
|
20
|
to
|
15
|
Adjusted
EBITDA
|
$560
|
to
|
$590
|
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multimedia:https://www.prnewswire.com/news-releases/energizer-holdings-inc-announces-fiscal-2021-fourth-quarter-and-full-year-results-and-financial-outlook-for-fiscal-2022-301420643.html
SOURCE Energizer Holdings, Inc.