ST. LOUIS, Aug. 1, 2018 /PRNewswire/ -- Energizer
Holdings, Inc. (NYSE: ENR) today announced results for the
third fiscal quarter, which ended June 30, 2018. For the
third fiscal quarter, net earnings were $23.8 million, or $0.39 per diluted share, compared to $24.9 million, or $0.40 per diluted share, in the prior year third
quarter. Adjusted net earnings in the third quarter were
$33.2 million, or $0.54 per diluted share, compared to adjusted net
earnings of $26.7 million, or
$0.43 per diluted share, in the prior
year third quarter.
"By focusing on our strategic initiatives, we built on our
momentum from the first half of fiscal 2018 and delivered solid
operating results in the third quarter," said Alan Hoskins, Chief Executive Officer.
"Strong organic sales were driven by distribution gains and the
continued benefit of pricing actions and our portfolio
optimization. In addition, we continued to make progress
towards closing and preparing to integrate our acquisition of the
global battery and portable lighting business from Spectrum Brands,
and added scale to our Auto Care business with our acquisition of
Nu Finish. Our strong performance and strategic acquisitions
will continue to drive our success and support our commitment to
delivering long-term value for our shareholders."
Third Quarter 2018 Financial Highlights
(Unaudited)
The following is a summary of key third fiscal
quarter results. All comparisons are with the third quarter
of fiscal 2017 unless otherwise stated.
- Net sales were $392.8
million, an increase of 5.6%: (a)
-
- Organic net sales increased $19.7
million, or 5.3%, due to increased volume at existing
customers and distribution gains, pricing favorability and
continued benefits realized from our portfolio optimization
partially offset by the May 2017
divestiture of the non-core promotional sales business acquired
with the 2016 auto care acquisition.
- Favorable currency impacts were $1.1
million, or 0.3%.
- Gross margin percentage was 44.8%, up 230 basis points.
Excluding acquisition and integration costs, gross margin increased
210 basis points primarily due to the benefit of lapping our prior
year investment related to our portfolio optimization. The
favorable impact of mix and foreign currency also contributed to
the increase. (a)
- A&P spending was 5.8% of net sales, an increase of
40 basis points, or $2.7 million,
versus the prior year. Spending in fiscal 2018 has been more
normalized throughout the fiscal year, while spending in fiscal
2017 was heavily weighted in the fourth quarter in support of our
portfolio optimization and the launch of our improved Energizer Max
offering.
- SG&A spending, excluding acquisition and integration
costs, was $89.5 million, an increase
of $5.7 million over the prior year
due primarily to the timing of benefits costs and an adjustment to
international customs costs. SG&A, excluding acquisition and
integration costs, was 22.8% compared to 22.5%, as a percentage of
net sales in the prior year. (a) (b)
- Earnings before income tax was favorably impacted by the
movement in foreign currencies, net of hedge impact, of
$0.1 million in the third fiscal
quarter This amount excludes the gain on the acquisition foreign
currency contracts associated with our Euro bonds offering that we
entered into in June 2018 and
terminated in July 2018 when the
funds were placed into escrow.
- Income tax rate on a year to date basis was 45.3% as
compared to 25.2% in the prior year. The current year rate includes
a $30.6 million charge for the
one-time impact of the new U.S. tax legislation passed in
December 2017 as well as the impact
of tax withholding expense related to anticipated cash movement to
fund the previously announced acquisition of Spectrum Brands
Holdings' global battery and portable lighting business (Spectrum
acquisition). Excluding the impact of our Non-GAAP adjustments, the
year to date tax rate was 23.6% as compared to 27.9% in the prior
year. The decrease in the rate is driven by the new statutory U.S.
rate that is now effective for fiscal year 2018. (a)
- Diluted earnings per share for the quarter was
$0.39 and Adjusted diluted
earnings per share for the quarter was $0.54. (a)
- Net cash from operating activities on a year to date
basis was $188.0 million and
Adjusted free cash flow on a year to date basis was
$193.5 million, or 14.4% of net
sales. (a)
- Dividend payments in the quarter were approximately
$17.3 million, or $0.29 per share.
- Repurchased approximately 1,126,000 shares of common
stock for $50.0 million on a year to
date basis. There were no share repurchased during the current
fiscal quarter.
(a) See Press Release attachments for additional information as
well as the GAAP to Non-GAAP reconciliations.
(b) The first quarter 2018 adoption of ASU 2017-07, Improving
the Presentation of Net Periodic Pension Cost and Net Periodic
Postretirement Benefit Costs (ASU 2017-07) requires pension
financing costs to be recorded in Other items, net. The 2017
results reflect this reclassification which caused a net pension
benefit of $3.1 and $9.3 million to be reclassified out of SG&A
for the quarter and nine months ended June
30, 2017, respectively.
Total Net Sales
(In millions - Unaudited)
|
For the Quarter
and Nine Months Ended June 30, 2018
|
|
|
Q3
|
|
%
Chg
|
|
Nine
Months
|
|
%
Chg
|
Net Sales -
FY'17
|
|
$
|
372.0
|
|
|
|
|
$
|
1,290.6
|
|
|
|
Organic
|
|
19.7
|
|
|
5.3
|
%
|
|
32.2
|
|
|
2.5
|
%
|
Impact of
currency
|
|
1.1
|
|
|
0.3
|
%
|
|
17.7
|
|
|
1.4
|
%
|
Net sales -
FY'18
|
|
$
|
392.8
|
|
|
5.6
|
%
|
|
$
|
1,340.5
|
|
|
3.9
|
%
|
Total Net sales increased 5.6%, or $20.8 million:
- Organic net sales were up 5.3%, or $19.7
million, in the third fiscal quarter due to the following
items:
-
- Distribution gains across both segments and increased volumes
at existing customers, primarily in North
America, contributed 3.5% to the organic increase;
- Favorable pricing across several markets increased net sales by
1.3%;
- Benefits from our portfolio optimization contributed 0.8% to
the organic sales increase; and
- Partially offsetting the increase was the May 2017 divestiture of the non-core promotional
sales business acquired with the 2016 auto care acquisition, which
negatively impacted net sales by 0.3%. This is the final quarter
that the divestiture will provide a negative year over year
comparative.
- Favorable currency impacts were $1.1
million, or 0.3%.
Total Segment
Profit (In millions - Unaudited)
|
For the Quarter
and Nine Months Ended June 30, 2018
|
|
|
Q3
|
|
%
Chg
|
|
Nine
Months
|
|
%
Chg
|
Segment Profit -
FY'17
|
|
$
|
79.3
|
|
|
|
|
$
|
347.0
|
|
|
|
Organic
|
|
12.9
|
|
|
16.3
|
%
|
|
(3.3)
|
|
|
(1.0)
|
%
|
Impact of
currency
|
|
0.8
|
|
|
1.0
|
%
|
|
11.4
|
|
|
3.3
|
%
|
Segment Profit -
FY'18
|
|
$
|
93.0
|
|
|
17.3
|
%
|
|
$
|
355.1
|
|
|
2.3
|
%
|
Total Segment profit in the third fiscal quarter
increased $13.7 million, or
17.3%. Excluding the favorable movement in foreign currencies
of $0.8 million, organic segment
profit increased $12.9 million, or
16.3%, in the current fiscal quarter. The increase was driven
by top-line growth in the quarter as well as the benefit of lapping
our prior year investment related to our portfolio
optimization. These increases were partially offset by higher
SG&A and A&P spending in the current fiscal quarter.
Refer to the Reconciliation of GAAP and Non-GAAP Financial
Measures attached for further information on our above
breakouts.
Financial Outlook for Fiscal Year 2018
The company is maintaining its adjusted EPS outlook for the full
fiscal year of $3.30 to $3.40 and updated the assumptions below related
to its financial outlook for the fiscal year 2018. Our
outlook also includes the impact of our recently completed
acquisition of Nu Finish. The impact of this acquisition did not
significantly impact our outlook for fiscal year 2018.
Note that all comparisons are with the fiscal year ended
September 30, 2017 unless otherwise
stated. The outlook provided below takes into account our
lapping of significant hurricane activity in fiscal 2017 that
contributed approximately $26 million
of net sales and $0.08 to adjusted
earnings per share. Our outlook assumes that activity does not
repeat.
Net sales on a reported basis are expected to be up low
single digits:
- Organic net sales are expected to be up low single digits;
and
- Favorable movements in foreign currency are now expected to be
flat to a favorable 1% based on current rates.
Gross margin rates are expected to be flat to up 25 basis
points versus the prior year, excluding acquisition and integration
costs.
A&P spending is expected to be in the range of 6% to
7% of net sales, consistent with our long term outlook.
SG&A as a percent of net sales is expected to be flat
on a year over year basis excluding acquisition and integration
costs. (a)
Earnings before income taxes is now expected to be
unfavorably impacted by the movement of foreign currencies by up to
$5 million, net of hedge impacts,
based on current rates.
Ex-unusual tax rate is expected to be in the range of 23%
to 25%, taking into account the impact related to the U.S. tax
legislation passed in December.
Adjusted Diluted earnings per share for the full fiscal
year is expected to be in the range of $3.30 to $3.40,
inclusive of the U.S. tax legislation passed in December and
excluding any impact associated with the Spectrum acquisition.
Capital spending is expected to be approximately
$30 million.
Adjusted Free cash flow is expected to be in the range of
$240 to $250
million, which includes the impact of fiscal year 2018 U.S.
tax legislation passed in December and excludes the cash impact
associated with the Spectrum acquisition.
(a) SG&A guidance takes into account the adoption of ASU
2017-07 which requires pension financing costs to be recorded in
Other items, net. The 2018 guidance reflects the fiscal year
2017 reclassification which resulted in a net pension benefit of
$3.1 and $9.3
million reclassified out of SG&A to Other items, net,
for the quarter and nine months ended June
30, 2017, respectively. This reclassification results in an
increase in SG&A as a percent of net sales from 19.7% to 20.4%
for fiscal year 2017.
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 the updated financial outlook for fiscal 2018.
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/1192/26711
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," "will," "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:
- market and economic conditions;
- market trends in the categories in which we compete;
- our ability to close the proposed Spectrum acquisition of the
global battery, lighting, and portable power business (the
"Business"), which may be delayed or may not close at all due to
the failure to obtain required regulatory approvals, or satisfy
other closing conditions;
- our ability to obtain financing for the Spectrum acquisition on
favorable terms;
- our ability to acquire and integrate businesses, and to realize
the projected results of acquisitions, including our ability to
promptly and effectively integrate the Business after the Spectrum
acquisition has closed, and our ability to obtain expected cost
savings, synergies and other anticipated benefits of the Spectrum
acquisition within the expected timeframe;
- the impact of the pending Spectrum acquisition on the
respective business operations;
- the success of new products and the ability to continually
develop and market new products;
- our ability to attract, retain and improve distribution with
key customers;
- our ability to continue planned advertising and other
promotional spending;
- our ability to timely execute strategic initiatives, including
restructurings, and international go-to-market changes in a manner
that will positively impact our financial condition and results of
operations and does not disrupt our business operations;
- the impact of strategic initiatives, including restructurings,
on our relationships with employees, customers and vendors;
- our ability to maintain and improve market share in the
categories in which we operate despite heightened competitive
pressure;
- our ability to improve operations and realize cost
savings;
- the impact of foreign currency exchange rates and currency
controls, as well as offsetting hedges, including the impact of the
United Kingdom's referendum vote
and announced intention to exit the European Union;
- the impact of raw materials and other commodity costs;
- the impact of legislative changes or regulatory determinations
or changes by federal, state and local, and foreign authorities,
including customs and tariff determinations, as well as the impact
of potential changes to tax laws, policies and regulations;
- costs and reputational damage associated with cyber-attacks or
information security breaches or other events;
- the impact of advertising and product liability claims and
other litigation; and
- compliance with debt covenants and maintenance of credit
ratings as well as the impact of interest and principal repayment
of our existing and any future debt.
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 14, 2017 as well as our Form
10-Q filed on May 2, 2018.
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,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net sales
|
$
|
392.8
|
|
|
$
|
372.0
|
|
|
$
|
1,340.5
|
|
|
$
|
1,290.6
|
|
Cost of products sold
(1)
|
216.7
|
|
|
214.0
|
|
|
717.6
|
|
|
693.1
|
|
Gross
profit
|
176.1
|
|
|
158.0
|
|
|
622.9
|
|
|
597.5
|
|
Selling, general and
administrative expense (1) (2)
|
111.9
|
|
|
86.3
|
|
|
315.3
|
|
|
263.4
|
|
Advertising and sales
promotion expense
|
22.9
|
|
|
20.2
|
|
|
81.1
|
|
|
71.1
|
|
Research and
development expense
|
5.2
|
|
|
5.1
|
|
|
15.9
|
|
|
16.0
|
|
Amortization of
intangible assets
|
2.8
|
|
|
2.8
|
|
|
8.4
|
|
|
8.4
|
|
Spin
restructuring
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.8)
|
|
Gain on sale of real
estate
|
(4.6)
|
|
|
(1.7)
|
|
|
(4.6)
|
|
|
(16.9)
|
|
Interest expense (1)
(3)
|
17.7
|
|
|
13.3
|
|
|
47.6
|
|
|
39.7
|
|
Other items, net (1)
(2)
|
(11.3)
|
|
|
1.5
|
|
|
(9.1)
|
|
|
(4.3)
|
|
Earnings before
income taxes
|
31.5
|
|
|
30.5
|
|
|
168.3
|
|
|
223.9
|
|
Income tax provision
(4)
|
7.7
|
|
|
5.6
|
|
|
76.3
|
|
|
56.5
|
|
Net
earnings
|
$
|
23.8
|
|
|
$
|
24.9
|
|
|
$
|
92.0
|
|
|
$
|
167.4
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
Basic net earnings
per share
|
$
|
0.40
|
|
|
$
|
0.40
|
|
|
$
|
1.54
|
|
|
$
|
2.71
|
|
Diluted net earnings
per share
|
$
|
0.39
|
|
|
$
|
0.40
|
|
|
$
|
1.50
|
|
|
$
|
2.67
|
|
|
|
|
|
|
|
|
|
Weighted average
shares of common stock - Basic
|
59.7
|
|
|
61.8
|
|
|
59.9
|
|
|
61.8
|
|
Weighted average
shares of common stock - Diluted
|
61.4
|
|
|
62.8
|
|
|
61.4
|
|
|
62.8
|
|
|
|
(1)
|
See the Non-GAAP
Reconciliations attached which break out the Acquisition and
integration costs included within this line.
|
|
|
(2)
|
As a result of the
adoption of ASU 2017-07 in the first fiscal quarter of 2018, the
pension expense components other than service costs are recorded in
Other items, net. This resulted in a reclassification of the
$3.1 and $9.3 million pension benefit from SG&A to Other items,
net for the quarter and nine months ended June 30, 2017,
respectively. The current year pension benefit recorded in Other
items, net was $1.7 and $5.1 million for the quarter and nine
months ended June 30, 2018, respectively.
|
|
|
(3)
|
Includes Acquisition
debt commitment fees of $3.4 and $6.3 for the quarter and nine
months ended June 30, 2018, respectively, associated with the
Spectrum acquisition.
|
|
|
(4)
|
Income tax provision
for the nine months ended June 30, 2018, includes $30.6 million of
one-time expense related to the enactment of the Tax Cuts and Jobs
Act of 2017 (U.S. Tax Legislation) and includes $6.0 million of tax
withholding expense related to anticipated cash movement to fund
the previously announced Spectrum acquisition in the nine months
ended June 30, 2018.
|
ENERGIZER
HOLDINGS, INC.
|
CONSOLIDATED
BALANCE SHEETS
|
(Condensed)
|
(In millions -
Unaudited)
|
|
Assets
|
June
30, 2018
|
|
September
30, 2017
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
510.9
|
|
|
$
|
378.0
|
|
Trade receivables,
less allowance for doubtful accounts of $4.9 and $5.8,
respectively
|
165.6
|
|
|
230.2
|
|
Inventories
|
307.8
|
|
|
317.1
|
|
Other current
assets
|
106.6
|
|
|
94.9
|
|
Total current
assets
|
$
|
1,090.9
|
|
|
$
|
1,020.2
|
|
Property, plant and
equipment, net
|
166.9
|
|
|
176.5
|
|
Goodwill
|
229.8
|
|
|
230.0
|
|
Other intangible
assets, net
|
214.4
|
|
|
223.8
|
|
Deferred tax
asset
|
33.8
|
|
|
47.7
|
|
Other
assets
|
69.0
|
|
|
125.4
|
|
Total
assets
|
$
|
1,804.8
|
|
|
$
|
1,823.6
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
Current
liabilities
|
|
|
|
Current maturities of
long-term debt
|
$
|
4.0
|
|
|
$
|
4.0
|
|
Notes
payable
|
174.6
|
|
|
104.1
|
|
Accounts
payable
|
194.4
|
|
|
219.3
|
|
Other current
liabilities
|
226.3
|
|
|
254.6
|
|
Total current
liabilities
|
$
|
599.3
|
|
|
$
|
582.0
|
|
Long-term
debt
|
976.7
|
|
|
978.5
|
|
Other
liabilities
|
181.0
|
|
|
178.0
|
|
Total
liabilities
|
$
|
1,757.0
|
|
|
$
|
1,738.5
|
|
Shareholders'
equity
|
|
|
|
Common
stock
|
0.6
|
|
|
0.6
|
|
Additional paid-in
capital
|
224.4
|
|
|
196.7
|
|
Retained
earnings
|
196.4
|
|
|
198.7
|
|
Treasury
stock
|
(117.7)
|
|
|
(72.1)
|
|
Accumulated other
comprehensive loss
|
(255.9)
|
|
|
(238.8)
|
|
Total shareholders'
equity
|
$
|
47.8
|
|
|
$
|
85.1
|
|
Total liabilities and
shareholders' equity
|
$
|
1,804.8
|
|
|
$
|
1,823.6
|
|
ENERGIZER
HOLDINGS, INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Condensed)
|
(In millions -
Unaudited)
|
|
|
For the Nine
Months Ended June 30,
|
|
2018
|
|
2017
|
Cash Flow from
Operating Activities
|
|
|
|
Net
earnings
|
$
|
92.0
|
|
|
$
|
167.4
|
|
Non-cash
restructuring costs
|
—
|
|
|
(2.5)
|
|
Depreciation and
amortization
|
33.8
|
|
|
38.3
|
|
Deferred income
taxes
|
11.1
|
|
|
2.1
|
|
Share-based
compensation expense
|
21.0
|
|
|
17.8
|
|
Gain on sale of real
estate
|
(4.6)
|
|
|
(16.9)
|
|
Mandatory transition
tax
|
28.2
|
|
|
—
|
|
Non-cash items
included in income, net
|
(2.1)
|
|
|
5.8
|
|
Other, net
|
(7.8)
|
|
|
(19.6)
|
|
Changes in current
assets and liabilities used in operations
|
16.4
|
|
|
(46.8)
|
|
Net cash from
operating activities
|
188.0
|
|
|
145.6
|
|
|
|
|
|
Cash Flow from
Investing Activities
|
|
|
|
Capital
expenditures
|
(17.2)
|
|
|
(17.5)
|
|
Proceeds from sale of
assets
|
6.1
|
|
|
27.2
|
|
Net cash (used
by)/from investing activities
|
(11.1)
|
|
|
9.7
|
|
|
|
|
|
Cash Flow from
Financing Activities
|
|
|
|
Payments on debt with
maturities greater than 90 days
|
(3.0)
|
|
|
(3.0)
|
|
Net increase in debt
with original maturities of 90 days or less
|
70.6
|
|
|
40.7
|
|
Debt issuance
costs
|
(1.4)
|
|
|
(0.8)
|
|
Dividends
paid
|
(52.3)
|
|
|
(52.1)
|
|
Common stock
purchased
|
(50.0)
|
|
|
(9.3)
|
|
Taxes paid for
withheld share-based payments
|
(1.8)
|
|
|
(8.2)
|
|
Net cash used by
financing activities
|
(37.9)
|
|
|
(32.7)
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
(6.1)
|
|
|
(5.5)
|
|
|
|
|
|
Net increase in cash
and cash equivalents
|
132.9
|
|
|
117.1
|
|
Cash and cash
equivalents, beginning of period
|
378.0
|
|
|
287.3
|
|
Cash and cash
equivalents, end of period
|
$
|
510.9
|
|
|
$
|
404.4
|
|
ENERGIZER HOLDINGS,
INC.
Reconciliation of GAAP and Non-GAAP
Measures
For the Quarter and Nine Months Ended
June 30, 2018
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 and related items, costs related
to spin, gain on sale of real estate and the one-time impact of the
new U.S. tax legislation. 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, other items, net, charges related to
acquisition and integration and the spin-off and gain on sale of
real estate have all been excluded from segment profit.
Adjusted Earnings Before Income Taxes, Adjusted Net Earnings
and Adjusted Diluted EPS. These measures exclude the
impact of costs related to acquisition and integration, the
spin-off, gain on sale of real estate and the one-time impact of
the new U.S. tax legislation.
Ex-unusual Tax Rate. This is the tax rate when
excluding the pre-tax impact of acquisition and integration and
spin-off costs, gain on sale of real state, as well as the related
tax impact for these items, calculated utilizing the statutory rate
for where the costs were incurred, as well as the one-time impact
of the new U.S. tax legislation.
Organic. This is the non-GAAP financial measurement
of the change in revenue, segment profit or other margins that
excludes or otherwise adjusts for the impact of currency from the
changes in foreign currency exchange rates as defined below:
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.
Adjusted Comparisons. Detail for adjusted gross
profit, adjusted gross margin, and adjusted SG&A as a percent
of sales are also supplemental non-GAAP measure disclosures. These
measures exclude the impact of costs related to acquisition and
integration.
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
costs. These cash payments are net of the statutory tax
benefit associated with the payment.
Non-GAAP Outlook. The Company is unable to provide
a reconciliation to the full year Adjusted EPS range of
$3.30 to $3.40, or Adjusted Free Cash flow range of
$240 million to $250 million, due to the uncertainty regarding
the amount of future acquisition and integration costs and related
cash payments. While we currently expect the Spectrum
acquisition will occur in the second half of calendar year 2018,
given the uncertainty of the exact closing date, we are unable to
forecast the amount of acquisition and integration costs that will
be incurred in fiscal 2018.
Energizer Holdings,
Inc.
Supplemental Schedules - Segment Information and
Supplemental Sales Data
For the Quarter and Nine Months
Ended June 30, 2018
(In
millions, except per share data - 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 tax, for the quarter and nine
months ended June 30, 2018 and 2017,
respectively, are presented below:
|
Quarter Ended June
30,
|
|
Nine Months Ended
June 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net
Sales
|
|
|
|
|
|
|
|
Americas
|
$
|
241.3
|
|
|
$
|
228.6
|
|
|
$
|
838.5
|
|
|
$
|
812.2
|
|
International
|
151.5
|
|
|
143.4
|
|
|
502.0
|
|
|
478.4
|
|
Total net
sales
|
$
|
392.8
|
|
|
$
|
372.0
|
|
|
$
|
1,340.5
|
|
|
$
|
1,290.6
|
|
Segment
Profit
|
|
|
|
|
|
|
|
Americas
|
$
|
60.4
|
|
|
$
|
53.6
|
|
|
$
|
239.2
|
|
|
$
|
237.2
|
|
International
|
32.6
|
|
|
25.7
|
|
|
115.9
|
|
|
109.8
|
|
Total segment
profit
|
$
|
93.0
|
|
|
$
|
79.3
|
|
|
$
|
355.1
|
|
|
$
|
347.0
|
|
General corporate and
other expenses (1) (2)
|
(24.7)
|
|
|
(19.4)
|
|
|
(71.0)
|
|
|
(66.1)
|
|
Global marketing
expense
|
(4.6)
|
|
|
(5.0)
|
|
|
(13.0)
|
|
|
(12.0)
|
|
Research and
development expense
|
(5.2)
|
|
|
(5.1)
|
|
|
(15.9)
|
|
|
(16.0)
|
|
Amortization of
intangible assets
|
(2.8)
|
|
|
(2.8)
|
|
|
(8.4)
|
|
|
(8.4)
|
|
Acquisition and
integration costs (3)
|
(22.4)
|
|
|
(6.7)
|
|
|
(44.6)
|
|
|
(9.2)
|
|
Spin
restructuring
|
—
|
|
|
—
|
|
|
—
|
|
|
3.8
|
|
Acquisition debt
commitment fee (4)
|
(3.4)
|
|
|
—
|
|
|
(6.3)
|
|
|
—
|
|
Gain on acquisition
foreign currency contracts (5)
|
9.9
|
|
|
—
|
|
|
9.9
|
|
|
—
|
|
Gain on sale of real
estate
|
4.6
|
|
|
1.7
|
|
|
4.6
|
|
|
16.9
|
|
Interest expense
(4)
|
(14.3)
|
|
|
(13.3)
|
|
|
(41.3)
|
|
|
(39.7)
|
|
Other items, net (2)
(5) (6)
|
1.4
|
|
|
1.8
|
|
|
(0.8)
|
|
|
7.6
|
|
Total earnings
before income taxes
|
$
|
31.5
|
|
|
$
|
30.5
|
|
|
$
|
168.3
|
|
|
$
|
223.9
|
|
|
|
(1)
|
Recorded in SG&A
on the unaudited Consolidated Statement of Earnings.
|
(2)
|
As a result of the
adoption of ASU 2017-07 in the first fiscal quarter of 2018, a $3.1
and $9.3 million benefit was reclassified from SG&A to Other
items, net for the quarter and nine months ended June 30, 2017,
respectively. The current year pension benefit in Other items, net
was $1.7 and $5.1 million for the quarter and nine months ended
June 30, 2018, respectively.
|
(3)
|
See the Supplemental
Schedules - Non-GAAP Reconciliations for where these charges are
recorded in unaudited consolidated Statement of
Earnings.
|
(4)
|
Acquisition debt
commitment fee represents financing commitment fees related to the
Spectrum acquisition which are recorded in Interest expense on the
unaudited Consolidated Statement of Earnings.
|
(5)
|
Gain on acquisition
foreign currency contracts was recorded in Other items, net on the
unaudited Consolidated Statement of Earnings. These
contracts, which were entered into in June 2018, locked in the USD
value of future Euro bonds related to the Spectrum Acquisition and
were terminated when the funds were placed into escrow on July 6,
2018.
|
(6)
|
The amounts for the
quarter and the nine months ended June 30, 2017 on the Consolidated
Statement of Earnings included $3.3 million of acquisition and
integration costs which have been reclassified for purposes of the
reconciliation above.
|
Supplemental product information is presented below for revenues
from external customers:
|
Quarter Ended June
30,
|
|
Nine Months Ended
June 30,
|
Net
Sales
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Batteries
|
$
|
350.1
|
|
|
$
|
325.8
|
|
|
$
|
1,204.9
|
|
|
$
|
1,138.8
|
|
Other
|
42.7
|
|
|
46.2
|
|
|
135.6
|
|
|
151.8
|
|
Total net
sales
|
$
|
392.8
|
|
|
$
|
372.0
|
|
|
$
|
1,340.5
|
|
|
$
|
1,290.6
|
|
Energizer Holdings,
Inc.
Supplemental Schedules - GAAP EPS to Adjusted EPS
Reconciliation
For the Quarter and Nine Months Ended
June 30, 2018
(In millions,
except per share data - Unaudited)
The following tables provide a reconciliation of earnings before
income taxes, net earnings and net earnings per diluted share to
adjusted earnings before income taxes, adjusted net earnings and
adjusted net earnings per diluted share, which are non-GAAP
measures.
|
For the Quarter
Ended June 30,
|
(in millions, except
per share data)
|
Earnings
Before
Income Taxes
|
|
Net
Earnings
|
Diluted
EPS
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Reported -
GAAP
|
$
|
31.5
|
|
|
$
|
30.5
|
|
|
$
|
23.8
|
|
|
$
|
24.9
|
|
|
$
|
0.39
|
|
|
$
|
0.40
|
|
Impacts: Expense
(Income)
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition
and integration costs (1)
|
25.8
|
|
|
6.7
|
|
|
20.2
|
|
|
3.1
|
|
|
0.33
|
|
|
0.05
|
|
Acquisition
withholding tax (2)
|
—
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
Gain on
acquisition foreign currency contracts (3)
|
(9.9)
|
|
|
—
|
|
|
(7.2)
|
|
|
—
|
|
|
(0.12)
|
|
|
—
|
|
Gain on sale
of real estate
|
(4.6)
|
|
|
(1.7)
|
|
|
(3.5)
|
|
|
(1.3)
|
|
|
(0.06)
|
|
|
(0.02)
|
|
One-time
impact of the new U.S. Tax Legislation
|
—
|
|
|
—
|
|
|
(0.6)
|
|
|
—
|
|
|
(0.01)
|
|
|
—
|
|
Adjusted - Non-GAAP
(4)
|
$
|
42.8
|
|
|
$
|
35.5
|
|
|
$
|
33.2
|
|
|
$
|
26.7
|
|
|
$
|
0.54
|
|
|
$
|
0.43
|
|
Weighted average
shares - Diluted
|
|
|
|
|
|
|
|
|
61.4
|
|
|
62.8
|
|
|
For the Nine
Months Ended June 30,
|
(in millions, except
per share data)
|
Earnings
Before
Income Taxes
|
|
Net
Earnings
|
Diluted
EPS
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Reported -
GAAP
|
$
|
168.3
|
|
|
$
|
223.9
|
|
|
$
|
92.0
|
|
|
$
|
167.4
|
|
|
$
|
1.50
|
|
|
$
|
2.67
|
|
Impacts: Expense
(Income)
|
|
|
|
|
|
|
|
|
|
|
|
Spin
restructuring
|
—
|
|
|
(3.8)
|
|
|
—
|
|
|
(2.4)
|
|
|
—
|
|
|
(0.04)
|
|
Acquisition
and integration costs (1)
|
50.9
|
|
|
9.2
|
|
|
38.4
|
|
|
4.7
|
|
|
0.63
|
|
|
0.07
|
|
Acquisition
withholding tax (2)
|
—
|
|
|
—
|
|
|
6.0
|
|
|
—
|
|
|
0.10
|
|
|
—
|
|
Gain on
acquisition foreign currency contracts (3)
|
(9.9)
|
|
|
—
|
|
|
(7.2)
|
|
|
—
|
|
|
(0.12)
|
|
|
—
|
|
Gain on sale
of real estate
|
(4.6)
|
|
|
(16.9)
|
|
|
(3.5)
|
|
|
(16.5)
|
|
|
(0.06)
|
|
|
(0.26)
|
|
One-time
impact of the new U.S. Tax Legislation
|
—
|
|
|
—
|
|
|
30.6
|
|
|
—
|
|
|
0.50
|
|
|
—
|
|
Adjusted - Non-GAAP
(5)
|
$
|
204.7
|
|
|
$
|
212.4
|
|
|
$
|
156.3
|
|
|
$
|
153.2
|
|
|
$
|
2.55
|
|
|
$
|
2.44
|
|
Weighted average
shares - Diluted
|
|
|
|
|
|
|
|
|
61.4
|
|
|
62.8
|
|
|
(1) See Supplemental
Schedules - Statement of Earnings Reconciliation for where these
costs are recorded on the unaudited Consolidated Statement of
Earnings.
|
|
(2) Represents the
tax withholding expense related to anticipated cash movement to
fund the previously announced Spectrum acquisition.
|
|
(3) Represents the
gain on the foreign currency contracts which were recorded in Other
items, net on the unaudited Consolidated Statement of
Earnings. These contracts, which were entered into in June,
locked in the USD value of future Euro bonds related to the
Spectrum Acquisition and were terminated when the funds were placed
into escrow on July 6, 2018.
|
|
(4) The effective tax
rate for the quarter ended June 30, 2018 and 2017 for the Adjusted
- Non-GAAP Net Earnings and Diluted EPS was 22.4% and 24.8%,
respectively, as calculated utilizing the statutory rate for where
the costs were incurred. The net tax impact associated with
the non-GAAP adjustments highlighted in the table was an expense of
$1.9 million and $3.2 million, respectively, for the quarters ended
June 30, 2018 and 2017.
|
|
(5) The effective tax
rate for the nine months ended June 30, 2018 and 2017 for the
Adjusted - Non-GAAP Net Earnings and Diluted EPS was 23.6% and
27.9%, respectively, as calculated utilizing the statutory rate for
where the costs were incurred. The net tax impact associated
with the non-GAAP adjustments highlighted in the table was a
benefit of $27.9 million and expense of $2.7 million, respectively,
for the nine months ended June 30, 2018 and 2017.
|
Energizer
Holdings, Inc.
|
Supplemental
Schedules - Segment Sales and Profit
|
For the Quarter
and Nine Months Ended June 30, 2018
|
(In millions,
except per share data - Unaudited)
|
|
Net
Sales
|
Q1'18
|
|
%
Chg
|
|
Q2'18
|
|
%
Chg
|
|
Q3'18
|
|
%
Chg
|
|
Nine
Months
'18
|
|
%
Chg
|
Americas
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales - prior
year
|
$
|
365.1
|
|
|
|
|
$
|
218.5
|
|
|
|
|
228.6
|
|
|
|
|
$
|
812.2
|
|
|
|
Organic
|
7.2
|
|
|
2.0
|
%
|
|
6.3
|
|
|
2.9
|
%
|
|
15.4
|
|
|
6.7
|
%
|
|
28.9
|
|
|
3.6
|
%
|
Impact of
currency
|
0.8
|
|
|
0.2
|
%
|
|
(0.7)
|
|
|
(0.3)
|
%
|
|
(2.7)
|
|
|
(1.1)
|
%
|
|
(2.6)
|
|
|
(0.4)
|
%
|
Net Sales -
current year
|
$
|
373.1
|
|
|
2.2
|
%
|
|
$
|
224.1
|
|
|
2.6
|
%
|
|
$
|
241.3
|
|
|
5.6
|
%
|
|
$
|
838.5
|
|
|
3.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales - prior
year
|
$
|
194.5
|
|
|
|
|
$
|
140.5
|
|
|
|
|
143.4
|
|
|
|
|
$
|
478.4
|
|
|
|
Organic
|
(1.3)
|
|
|
(0.7)
|
%
|
|
0.3
|
|
|
0.2
|
%
|
|
4.3
|
|
|
3.0
|
%
|
|
3.3
|
|
|
0.7
|
%
|
Impact of
currency
|
7.0
|
|
|
3.6
|
%
|
|
9.5
|
|
|
6.8
|
%
|
|
3.8
|
|
|
2.6
|
%
|
|
20.3
|
|
|
4.2
|
%
|
Net Sales -
current year
|
$
|
200.2
|
|
|
2.9
|
%
|
|
$
|
150.3
|
|
|
7.0
|
%
|
|
$
|
151.5
|
|
|
5.6
|
%
|
|
$
|
502.0
|
|
|
4.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales - prior
year
|
$
|
559.6
|
|
|
|
|
$
|
359.0
|
|
|
|
|
$
|
372.0
|
|
|
|
|
$
|
1,290.6
|
|
|
|
Organic
|
5.9
|
|
|
1.1
|
%
|
|
6.6
|
|
|
1.8
|
%
|
|
19.7
|
|
|
5.3
|
%
|
|
32.2
|
|
|
2.5
|
%
|
Impact of
currency
|
7.8
|
|
|
1.3
|
%
|
|
8.8
|
|
|
2.5
|
%
|
|
1.1
|
|
|
0.3
|
%
|
|
17.7
|
|
|
1.4
|
%
|
Net Sales -
current year
|
$
|
573.3
|
|
|
2.4
|
%
|
|
$
|
374.4
|
|
|
4.3
|
%
|
|
$
|
392.8
|
|
|
5.6
|
%
|
|
$
|
1,340.5
|
|
|
3.9
|
%
|
|
Segment
Profit
|
Q1'18
|
|
%
Chg
|
|
Q2'18
|
|
%
Chg
|
|
Q3'18
|
|
%
Chg
|
|
Nine
Months
'18
|
|
%
Chg
|
Americas
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit -
prior year
|
$
|
123.1
|
|
|
|
|
$
|
60.5
|
|
|
|
|
53.6
|
|
|
|
|
$
|
237.2
|
|
|
|
Organic
|
(0.5)
|
|
|
(0.4)
|
%
|
|
(4.2)
|
|
|
(6.9)
|
%
|
|
8.9
|
|
|
16.6
|
%
|
|
4.2
|
|
|
1.8
|
%
|
Impact of
currency
|
0.5
|
|
|
0.4
|
%
|
|
(0.6)
|
|
|
(1.0)
|
%
|
|
(2.1)
|
|
|
(3.9)
|
%
|
|
(2.2)
|
|
|
(1.0)
|
%
|
Segment Profit -
current year
|
$
|
123.1
|
|
|
—
|
%
|
|
$
|
55.7
|
|
|
(7.9)
|
%
|
|
$
|
60.4
|
|
|
12.7
|
%
|
|
$
|
239.2
|
|
|
0.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit -
prior year
|
$
|
50.8
|
|
|
|
|
$
|
33.3
|
|
|
|
|
25.7
|
|
|
|
|
$
|
109.8
|
|
|
|
Organic
|
(6.0)
|
|
|
(11.8)
|
%
|
|
(5.5)
|
|
|
(16.5)
|
%
|
|
4.0
|
|
|
15.6
|
%
|
|
(7.5)
|
|
|
(6.8)
|
%
|
Impact of
currency
|
4.4
|
|
|
8.7
|
%
|
|
6.3
|
|
|
18.9
|
%
|
|
2.9
|
|
|
11.2
|
%
|
|
13.6
|
|
|
12.4
|
%
|
Segment Profit -
current year
|
$
|
49.2
|
|
|
(3.1)
|
%
|
|
$
|
34.1
|
|
|
2.4
|
%
|
|
$
|
32.6
|
|
|
26.8
|
%
|
|
$
|
115.9
|
|
|
5.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Segment
Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit -
prior year
|
$
|
173.9
|
|
|
|
|
$
|
93.8
|
|
|
|
|
$
|
79.3
|
|
|
|
|
$
|
347.0
|
|
|
|
Organic
|
(6.5)
|
|
|
(3.7)
|
%
|
|
(9.7)
|
|
|
(10.3)
|
%
|
|
12.9
|
|
|
16.3
|
%
|
|
(3.3)
|
|
|
(1.0)
|
%
|
Impact of
currency
|
4.9
|
|
|
2.8
|
%
|
|
5.7
|
|
|
6.0
|
%
|
|
0.8
|
|
|
1.0
|
%
|
|
11.4
|
|
|
3.3
|
%
|
Segment Profit -
current year
|
$
|
172.3
|
|
|
(0.9)
|
%
|
|
$
|
89.8
|
|
|
(4.3)
|
%
|
|
$
|
93.0
|
|
|
17.3
|
%
|
|
$
|
355.1
|
|
|
2.3
|
%
|
Energizer
Holdings, Inc.
|
Supplemental
Schedules - Non-GAAP Reconciliations
|
For the Quarter
and Nine Months Ended June 30, 2018
|
(In millions,
except per share data - Unaudited)
|
|
FY18 Non-GAAP
Reconciliations
|
|
Gross
Profit
|
Q1'18
|
|
Q2'18
|
|
Q3'18
|
|
Q1'17
|
|
Q2'17
|
|
Q3'17
|
|
Q3'18
YTD
|
|
Q3'17
YTD
|
Net Sales
|
$
|
573.3
|
|
|
$
|
374.4
|
|
|
$
|
392.8
|
|
|
$
|
559.6
|
|
|
$
|
359.0
|
|
|
$
|
372.0
|
|
|
$
|
1,340.5
|
|
|
$
|
1,290.6
|
|
Cost of products sold
- adjusted
|
295.0
|
|
|
205.9
|
|
|
216.7
|
|
|
288.0
|
|
|
190.9
|
|
|
213.1
|
|
|
717.6
|
|
|
692.0
|
|
Adjusted Gross
Profit
|
$
|
278.3
|
|
|
$
|
168.5
|
|
|
$
|
176.1
|
|
|
$
|
271.6
|
|
|
$
|
168.1
|
|
|
$
|
158.9
|
|
|
$
|
622.9
|
|
|
$
|
598.6
|
|
Adjusted Gross
Margin
|
48.5
|
%
|
|
45.0
|
%
|
|
44.8
|
%
|
|
48.5
|
%
|
|
46.8
|
%
|
|
42.7
|
%
|
|
46.5
|
%
|
|
46.4
|
%
|
Acquisition and
integration costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
0.9
|
|
|
—
|
|
|
1.1
|
|
Reported Cost of
products sold
|
295.0
|
|
|
205.9
|
|
|
216.7
|
|
|
288.0
|
|
|
191.1
|
|
|
214.0
|
|
|
717.6
|
|
|
693.1
|
|
Reported Gross
Profit
|
$
|
278.3
|
|
|
$
|
168.5
|
|
|
$
|
176.1
|
|
|
$
|
271.6
|
|
|
$
|
167.9
|
|
|
$
|
158.0
|
|
|
$
|
622.9
|
|
|
$
|
597.5
|
|
Reported Gross
Margin
|
48.5
|
%
|
|
45.0
|
%
|
|
44.8
|
%
|
|
48.5
|
%
|
|
46.8
|
%
|
|
42.5
|
%
|
|
46.5
|
%
|
|
46.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SG&A
|
Q1'18
|
|
Q2'18
|
|
Q3'18
|
|
Q1'17
|
|
Q2'17
|
|
Q3'17
|
|
Q3'18
YTD
|
|
Q3'17
YTD
|
Segment
SG&A
|
$
|
71.2
|
|
|
$
|
61.6
|
|
|
$
|
63.2
|
|
|
$
|
65.0
|
|
|
$
|
60.1
|
|
|
$
|
62.4
|
|
|
$
|
196.0
|
|
|
$
|
187.5
|
|
Corporate SG&A
(1)
|
21.8
|
|
|
24.8
|
|
|
24.6
|
|
|
17.2
|
|
|
29.5
|
|
|
19.6
|
|
|
71.2
|
|
|
66.3
|
|
Global
Marketing
|
0.5
|
|
|
1.3
|
|
|
1.7
|
|
|
1.4
|
|
|
1.6
|
|
|
1.8
|
|
|
3.5
|
|
|
4.8
|
|
SG&A Adjusted
- subtotal
|
$
|
93.5
|
|
|
$
|
87.7
|
|
|
$
|
89.5
|
|
|
$
|
83.6
|
|
|
$
|
91.2
|
|
|
$
|
83.8
|
|
|
$
|
270.7
|
|
|
$
|
258.6
|
|
SG&A Adjusted
% of Net Sales
|
16.3
|
%
|
|
23.4
|
%
|
|
22.8
|
%
|
|
14.9
|
%
|
|
25.4
|
%
|
|
22.5
|
%
|
|
20.2
|
%
|
|
20.0
|
%
|
Acquisition and
integration costs
|
5.7
|
|
|
16.5
|
|
|
22.4
|
|
|
0.8
|
|
|
1.5
|
|
|
2.5
|
|
|
44.6
|
|
|
4.8
|
|
Reported
SG&A
|
$
|
99.2
|
|
|
$
|
104.2
|
|
|
$
|
111.9
|
|
|
$
|
84.4
|
|
|
$
|
92.7
|
|
|
$
|
86.3
|
|
|
$
|
315.3
|
|
|
$
|
263.4
|
|
Reported SG&A
% of Net Sales
|
17.3
|
%
|
|
27.8
|
%
|
|
28.5
|
%
|
|
15.1
|
%
|
|
25.8
|
%
|
|
23.2
|
%
|
|
23.5
|
%
|
|
20.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration
|
Q1'18
|
|
Q2'18
|
|
Q3'18
|
|
Q1'17
|
|
Q2'17
|
|
Q3'17
|
|
Q3'18
YTD
|
|
Q3'17
YTD
|
Cost of products
sold
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.2
|
|
|
$
|
0.9
|
|
|
$
|
—
|
|
|
$
|
1.1
|
|
SG&A
|
5.7
|
|
|
16.5
|
|
|
22.4
|
|
|
0.8
|
|
|
1.5
|
|
|
2.5
|
|
|
44.6
|
|
|
4.8
|
|
Interest
expense
|
—
|
|
|
2.9
|
|
|
3.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6.3
|
|
|
—
|
|
Other items,
net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.3
|
|
|
—
|
|
|
3.3
|
|
Acquisition and
integration costs - subtotal
|
$
|
5.7
|
|
|
$
|
19.4
|
|
|
$
|
25.8
|
|
|
$
|
0.8
|
|
|
$
|
1.7
|
|
|
$
|
6.7
|
|
|
$
|
50.9
|
|
|
$
|
9.2
|
|
Gain on acquisition
foreign currency contract (Other items, net)
|
—
|
|
|
—
|
|
|
(9.9)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9.9)
|
|
|
—
|
|
Acquisition and
integration related items
|
$
|
5.7
|
|
|
$
|
19.4
|
|
|
$
|
15.9
|
|
|
$
|
0.8
|
|
|
$
|
1.7
|
|
|
$
|
6.7
|
|
|
$
|
41.0
|
|
|
$
|
9.2
|
|
|
|
|
|
Free Cash
Flow
|
|
Q3'18
YTD
|
|
Q3'17
YTD
|
Net cash from
operating activities
|
|
$
|
188.0
|
|
|
$
|
145.6
|
|
Capital
expenditures
|
|
(17.2)
|
|
|
(17.5)
|
|
Proceeds from sale of
assets
|
|
6.1
|
|
|
27.2
|
|
Free Cash Flow -
subtotal
|
|
$
|
176.9
|
|
|
$
|
155.3
|
|
Acquisition and
integration related payments
|
|
16.6
|
|
|
4.1
|
|
Adjusted Free Cash
Flow
|
|
$
|
193.5
|
|
|
$
|
159.4
|
|
|
|
(1)
|
As a result of the
adoption of ASU 2017-07 in the first fiscal quarter of 2018, a $3.1
and $9.3 million benefit was reclassified from SG&A to Other
items, net for the quarter and nine months ended June 30, 2017,
respectively. The current year pension benefit recorded in Other
items, net was $1.7 and $5.1 million for the quarter and nine
months ended June 30, 2018, respectively.
|
View original
content:http://www.prnewswire.com/news-releases/energizer-holdings-inc-announces-fiscal-2018-third-quarter-results-300689757.html
SOURCE Energizer Holdings, Inc.