- Pricing actions across both segments and strong auto care
demand resulted in Net sales of $685.4
million, roughly flat to prior year, with organic growth of
1.3%.1
- Increasing fiscal year Net Sales guidance to low single
digit growth and reaffirming fiscal year outlook for Adjusted
earnings per share and Adjusted EBITDA.1
ST. LOUIS, May 9, 2022 /PRNewswire/ -- Energizer
Holdings, Inc. (NYSE: ENR) today announced results for the
second fiscal quarter ended March 31, 2022.
"I would like to recognize all Energizer colleagues around the
world for their dedication to delivering another successful
quarter. Our top-line performance exceeded expectations
driven by successful pricing execution across our brands and strong
organic growth in our auto care business," said Mark LaVigne, Chief Executive Officer. "Through
pricing actions and improved supply chain performance, we continue
to offset inflationary cost pressures and improve speed to market.
As a result, we are increasing our outlook for top-line growth for
the fiscal year while maintaining our outlook for adjusted earnings
per share and EBITDA."
Top-Line Performance
For the quarter, we had Net sales of $685.4 million compared to $685.1 million in the prior year period.
|
Second
Quarter
|
|
%
Chg
|
Net sales -
FY'21
|
$
685.1
|
|
|
Organic
|
8.7
|
|
1.3%
|
Change in
Argentina
|
1.4
|
|
0.2%
|
Impact of
currency
|
(9.8)
|
|
(1.5)%
|
Net sales -
FY'22
|
$
685.4
|
|
—%
|
_______________________________
|
1) See Press Release
attachments and supplemental schedules for additional information,
including the GAAP and Non-GAAP reconciliations.
|
- Organic Net sales increased 1.3% primarily driven by the
following items:
-
- Pricing executed in both the battery and auto care businesses
drove an organic increase of approximately 5%; and
- New distribution across both battery and auto care,
predominately in our International markets, contributed
approximately 1% to organic growth.
- In addition to the pricing and distribution gains, we
experienced increased auto care volumes due to a shift in timing of
refrigerant shipments from the third quarter to second quarter and
higher than expected battery volumes. However the net volume impact
was an approximate 4.5% decrease to organic sales as a result of
lapping the elevated battery demand in the prior year; and
- The Company exited the Russian market in the second quarter of
fiscal 2022 which resulted in reduced sales of approximately 0.5%
over the prior year quarter.
Gross Margin
Gross margin on a reported basis was 34.8% versus 39.5% in the
prior year. Excluding the current year costs from exiting the
Russian market and the prior year costs related to acquisition and
integration, adjusted gross margin was 34.9%, down 560 basis points
from the prior year.
|
|
Second
Quarter
|
Adjusted gross margin
- FY'21 (1)
|
|
40.5%
|
Product cost
impacts
|
|
(8.6)%
|
Pricing
|
|
2.9%
|
Currency impact and
other
|
|
0.1%
|
Adjusted gross margin
- FY'22 (1)
|
|
34.9%
|
The Gross margin decrease was largely driven by a continuation
of higher operating costs, including transportation, material and
labor, consistent with ongoing inflationary trends. Partially
offsetting these margin impacts was the positive impact of executed
price increases in battery and auto care.
Selling, General and Administrative Expense
(SG&A)
SG&A, excluding current year costs from exiting Russia and acquisition and integration costs
in the prior year, for the second quarter was 17.2% of Net sales,
or $117.6 million, compared to 16.7%,
or $114.1 million in the prior year.
The increase was primarily driven by higher IT spending related to
our investment in digital transformation.(1)
Advertising and Promotion Expense (A&P)
A&P was 2.9% of net sales for the second fiscal quarter,
compared to 4.0% in the prior year or a $7.5
million decline due to timing of planned current year
spend.
Earnings Per Share
and Adjusted EBITDA
|
Second
Quarter
|
(In millions, except
per share data)
|
2022
|
|
2021
|
Net
earnings/(loss)
|
$
19.0
|
|
$
(10.2)
|
Diluted net
earnings/(loss) per common share
|
$
0.27
|
|
$
(0.21)
|
|
|
|
|
Adjusted net
earnings(1)
|
$
33.3
|
|
$
56.8
|
Adjusted diluted net
earnings per common share(1)
|
$
0.47
|
|
$
0.77
|
Adjusted
EBITDA(1)
|
$
114.6
|
|
$
147.6
|
The changes in Adjusted EBITDA and Adjusted diluted net earnings
per common share for the quarter reflect higher input costs which
compressed the current period gross margin and slightly higher
SG&A, partially offset by lower A&P spending. Adjusted
diluted net earnings per common share benefited from lower interest
and taxes in the current quarter as well.
Continued Return of Capital
- Common stock dividend payments in the quarter of approximately
$22.3 million, or $0.30 per common share.
- During the quarter, the mandatory convertible preferred stock
automatically converted to approximately 4,700,000 shares of common
stock. Prior to the conversion, there were dividends paid of
$4.0 million, or $1.875 per share of mandatory convertible
preferred stock, which had been declared in the first fiscal
quarter.
Financial Outlook and Assumptions for Fiscal Year
2022(1)
We are increasing our previously communicated full year Net
sales outlook to low single digit growth as we have delivered a
strong first half performance and executed pricing initiatives
across the globe which should further benefit sales. The
current operating environment remains volatile, but as a result of
our pricing actions and cost management efforts we are reaffirming
our guidance for Adjusted earnings per share of $3.00 to $3.30 and
Adjusted EBITDA of $560 million to
$590 million.
Webcast Information
In conjunction with this announcement, the Company will hold an
investor conference call beginning at 10:00
a.m. Eastern Time today. The call will focus on second
fiscal quarter earnings and recent trends in the business. All
interested parties may access a live webcast of this conference
call at www.energizerholdings.com, under "Investors" and "Events
and Presentations" tabs or by using the following link:
https://app.webinar.net/D0QMBOalv1d
For those unable to participate during the live webcast, a
replay will be available on www.energizerholdings.com, under
"Investors," "Events and Presentations," and "Past Events"
tabs.
This document contains both historical and forward-looking
statements. Forward-looking statements are not based on historical
facts but instead reflect our expectations, estimates or
projections concerning future results or events, including, without
limitation, the future sales, gross margins, costs, earnings, cash
flows, tax rates and performance of the Company, as well as the
Company's entrance into an accelerated share repurchase program.
These statements generally can be identified by the use of
forward-looking words or phrases such as "believe," "expect,"
"expectation," "anticipate," "may," "could," "intend," "belief,"
"estimate," "plan," "target," "predict," "likely," "should,"
"forecast," "outlook," or other similar words or phrases. These
statements are not guarantees of performance and are inherently
subject to known and unknown risks, uncertainties and assumptions
that are difficult to predict and could cause our actual results to
differ materially from those indicated by those statements. We
cannot assure you that any of our expectations, estimates or
projections will be achieved. The forward-looking statements
included in this document are only made as of the date of this
document and we disclaim any obligation to publicly update any
forward-looking statement to reflect subsequent events or
circumstances. Numerous factors could cause our actual results and
events to differ materially from those expressed or implied by
forward-looking statements, including, without limitation:
- Global economic and financial market conditions, including the
conditions resulting from the ongoing conflict between Russia and Ukraine as well as the 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.
- We rely significantly on information technology and any
inadequacy, interruption, theft or loss of data, malicious attack,
integration failure, failure to maintain the security,
confidentiality or privacy of sensitive data residing on our
systems or other security failure of that technology could harm our
ability to effectively operate our business and damage the
reputation of our brands.
- 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.
- 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 16, 2021.
ENERGIZER
HOLDINGS, INC.
CONSOLIDATED STATEMENT OF EARNINGS
(Condensed)
(In millions, except per share data - Unaudited)
|
|
|
For the Quarter
Ended
March 31,
|
|
For the Six Months
Ended
March 31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net sales
|
$
685.4
|
|
$
685.1
|
|
$
1,531.7
|
|
$
1,533.7
|
Cost of products sold
(1)
|
447.0
|
|
414.6
|
|
981.7
|
|
925.3
|
Gross
profit
|
238.4
|
|
270.5
|
|
550.0
|
|
608.4
|
Selling, general and
administrative expense (1)
|
123.4
|
|
123.8
|
|
245.5
|
|
247.9
|
Advertising and sales
promotion expense
|
19.6
|
|
27.1
|
|
71.3
|
|
76.7
|
Research and
development expense (1)
|
7.9
|
|
9.0
|
|
16.8
|
|
16.6
|
Amortization of
intangible assets
|
15.2
|
|
15.3
|
|
30.4
|
|
30.8
|
Interest
expense
|
38.3
|
|
39.1
|
|
75.3
|
|
86.4
|
Loss on
extinguishment of debt (2)
|
—
|
|
70.0
|
|
—
|
|
75.7
|
Other items, net
(1)
|
6.0
|
|
(0.1)
|
|
6.2
|
|
0.7
|
Earnings/(loss)
before income taxes
|
28.0
|
|
(13.7)
|
|
104.5
|
|
73.6
|
Income tax
provision/(benefit)
|
9.0
|
|
(3.5)
|
|
25.5
|
|
16.7
|
Net
earnings/(loss)
|
19.0
|
|
(10.2)
|
|
79.0
|
|
56.9
|
Mandatory preferred
stock dividends
|
—
|
|
(4.1)
|
|
(4.0)
|
|
(8.1)
|
Net earnings/(loss)
attributable to common shareholders
|
$
19.0
|
|
$
(14.3)
|
|
$
75.0
|
|
$
48.8
|
|
|
|
|
|
|
|
|
Basic net
earnings/(loss) per common share
|
$
0.27
|
|
$
(0.21)
|
|
$
1.09
|
|
$
0.71
|
Diluted net
earnings(loss) per common share (3)
|
$
0.27
|
|
$
(0.21)
|
|
$
1.09
|
|
$
0.71
|
|
|
|
|
|
|
|
|
Weighted average
shares of common stock - Basic
|
70.4
|
|
68.4
|
|
68.6
|
|
68.5
|
Weighted average
shares of common stock - Diluted (3)
|
71.6
|
|
68.4
|
|
69.0
|
|
68.8
|
|
|
(1)
|
See the attached
Supplemental Schedules - Non-GAAP Reconciliations, which break out
the costs from exiting the Russian market and the Acquisition and
integration related costs included within these lines.
|
|
|
(2)
|
The Loss on the
extinguishment of debt for the quarter and six months ended
March 31, 2021 related to the Company's term loan refinancing
in December 2020 and the redemption of the $600.0 million Senior
Notes due in 2027 in January 2021.
|
|
|
(3)
|
During the quarter
ended March 31, 2022, the mandatory convertible preferred shares
were converted to approximately 4.7 million common stock. For the
quarter ended March 31, 2021 and for the six months ended March 31,
2022 and 2021, the conversion of the mandatory convertible
preferred shares was anti-dilutive and the mandatory preferred
stock dividends are included in the dilution
calculation.
|
ENERGIZER
HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(Condensed)
(In millions - Unaudited)
|
|
Assets
|
March 31,
2022
|
|
September
30,
2021
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
213.2
|
|
$
238.9
|
Trade receivables
|
335.9
|
|
292.9
|
Inventories
|
854.0
|
|
728.3
|
Other current
assets
|
190.9
|
|
179.4
|
Total current
assets
|
$
1,594.0
|
|
$
1,439.5
|
Property, plant and
equipment, net
|
386.2
|
|
382.9
|
Operating lease
assets
|
106.8
|
|
112.3
|
Goodwill
|
1,048.5
|
|
1,053.8
|
Other intangible
assets, net
|
1,840.9
|
|
1,871.3
|
Deferred tax
asset
|
21.3
|
|
21.7
|
Other
assets
|
162.2
|
|
126.0
|
Total
assets
|
$
5,159.9
|
|
$
5,007.5
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
Current
liabilities
|
|
|
|
Current maturities of
long-term debt
|
$
12.0
|
|
$
12.0
|
Current portion of
capital leases
|
2.0
|
|
2.3
|
Notes
payable
|
1.2
|
|
105.0
|
Accounts
payable
|
383.1
|
|
454.8
|
Current operating
lease liabilities
|
15.8
|
|
15.5
|
Other current
liabilities
|
324.4
|
|
356.8
|
Total current
liabilities
|
$
738.5
|
|
$
946.4
|
Long-term
debt
|
3,592.6
|
|
3,333.4
|
Operating lease
liabilities
|
96.2
|
|
102.3
|
Deferred tax
liability
|
102.1
|
|
91.3
|
Other
liabilities
|
169.2
|
|
178.4
|
Total
liabilities
|
$
4,698.6
|
|
$
4,651.8
|
Shareholders'
equity
|
|
|
|
Common
stock
|
0.8
|
|
0.7
|
Mandatory convertible
preferred stock
|
—
|
|
—
|
Additional paid-in
capital
|
844.4
|
|
832.0
|
Retained
earnings
|
27.9
|
|
(5.0)
|
Treasury
stock
|
(249.8)
|
|
(241.6)
|
Accumulated other
comprehensive loss
|
(162.0)
|
|
(230.4)
|
Total shareholders'
equity
|
$
461.3
|
|
$
355.7
|
Total liabilities and
shareholders' equity
|
$
5,159.9
|
|
$
5,007.5
|
ENERGIZER
HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Condensed)
(In millions - Unaudited)
|
|
|
For the Six Months
Ended March 31,
|
|
2022
|
|
2021
|
Cash Flow from
Operating Activities
|
|
|
|
Net
earnings
|
$
79.0
|
|
$
56.9
|
Non-cash integration
and restructuring charges
|
3.0
|
|
3.5
|
Depreciation and
amortization
|
58.6
|
|
58.7
|
Deferred income
taxes
|
0.3
|
|
2.1
|
Share-based
compensation expense
|
6.4
|
|
9.4
|
Loss on extinguishment
of debt
|
—
|
|
75.7
|
Non-cash charges for
exiting the Russian market
|
13.4
|
|
—
|
Non-cash items
included in income, net
|
7.8
|
|
10.8
|
Other, net
|
(3.7)
|
|
(0.3)
|
Changes in current
assets and liabilities used in operations
|
(273.5)
|
|
(204.4)
|
Net cash (used
by)/from operating activities
|
(108.7)
|
|
12.4
|
|
|
|
|
Cash Flow from
Investing Activities
|
|
|
|
Capital
expenditures
|
(45.9)
|
|
(19.2)
|
Proceeds from sale of
assets
|
0.1
|
|
0.1
|
Acquisitions, net of
cash acquired and working capital settlements
|
0.4
|
|
(67.1)
|
Net cash used by
investing activities
|
(45.4)
|
|
(86.2)
|
|
|
|
|
Cash Flow from
Financing Activities
|
|
|
|
Cash proceeds from
issuance of debt with original maturities greater than 90
days
|
300.0
|
|
1,200.0
|
Payments on debt with
maturities greater than 90 days
|
(7.2)
|
|
(1,983.9)
|
Net
(decrease)/increase in debt with original maturities of 90 days or
less
|
(102.2)
|
|
88.1
|
Premiums paid on
extinguishment of debt
|
—
|
|
(122.5)
|
Debt issuance
costs
|
(7.3)
|
|
(17.7)
|
Payment of contingent
consideration
|
—
|
|
(3.9)
|
Dividends paid on
common stock
|
(42.8)
|
|
(43.3)
|
Dividends paid on
mandatory convertible preferred stock
|
(8.0)
|
|
(8.1)
|
Common stock
purchased
|
—
|
|
(21.3)
|
Taxes paid for
withheld share-based payments
|
(2.3)
|
|
(6.7)
|
Net cash from/(used
by) financing activities
|
130.2
|
|
(919.3)
|
|
|
|
|
Effect of exchange
rate changes on cash
|
(1.8)
|
|
4.3
|
|
|
|
|
Net decrease in cash,
cash equivalents, and restricted cash
|
(25.7)
|
|
(988.8)
|
Cash, cash
equivalents, and restricted cash, beginning of period
|
238.9
|
|
1,249.8
|
Cash, cash
equivalents, and restricted cash, end of period
|
$
213.2
|
|
$
261.0
|
ENERGIZER HOLDINGS, INC.
Reconciliation of GAAP and Non-GAAP Measures
For the Quarter and Six Months Ended March
31, 2022
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, the
costs of exiting the Russian market and the loss on extinguishment
of debt. In addition, these measures help investors to analyze year
over year comparability when excluding currency fluctuations as
well as other Company initiatives that are not on-going. We
believe these non-GAAP financial measures are an enhancement to
assist investors in understanding our business and in performing
analysis consistent with financial models developed by research
analysts. Investors should consider non-GAAP measures in addition
to, not as a substitute for, or superior to, the comparable GAAP
measures. In addition, these non-GAAP measures may not be the same
as similar measures used by other companies due to possible
differences in methods and in the items being adjusted.
We provide the following non-GAAP measures and calculations, as
well as the corresponding reconciliation to the closest GAAP
measure in the following supplemental schedules:
Segment Profit. This amount represents the
operations of our two reportable segments including allocations for
shared support functions. General corporate and other expenses,
amortization expense, interest expense, loss on extinguishment of
debt, other items, net, the charges related to acquisition and
integration costs, including restructuring charges, an acquisition
earn out and the costs of exiting the Russian market have all been
excluded from segment profit.
Adjusted Net Earnings and Adjusted Diluted Net Earnings Per
Common Share (EPS). These measures exclude the impact of
the costs related to acquisition and integration, an acquisition
earn out, the costs of exiting the Russian market and the loss on
extinguishment of debt.
Non-GAAP Tax Rate. This is the tax rate when excluding
the pre-tax impact of acquisition and integration costs, an
acquisition earn out, the costs of exiting the Russian market and
the loss on extinguishment of debt, as well as the related tax
impact for these items, calculated utilizing the statutory rate for
where the impact was incurred.
Organic. This is the non-GAAP financial measurement
of the change in revenue or segment profit that excludes or
otherwise adjusts for the change in Argentina operations and impact of currency
from the changes in foreign currency exchange rates as defined
below:
Change in Argentina Operations. The Company is
presenting separately all changes in sales and segment profit from
our Argentina affiliate due to the
designation of the economy as highly inflationary as of
July 1, 2018.
Impact of currency. The
Company evaluates the operating performance of our Company on a
currency neutral basis. The impact of currency is the
difference between the value of current year foreign operations at
the current period ending USD exchange rate, compared to the value
of the current year foreign operations at the prior period ending
USD exchange rate, as well as the impact of hedging on the
currency fluctuation.
Adjusted Comparisons. Detail for adjusted gross
profit, adjusted gross margin, adjusted SG&A, adjusted SG&A
as percent of sales and adjusted Other items, net are also
supplemental non-GAAP measure disclosures. These measures exclude
the impact of costs related to acquisition and integration, an
acquisition earn out and the costs of exiting the Russian
market.
EBITDA and Adjusted EBITDA. EBITDA is defined as net
earnings before income tax provision, interest, loss on
extinguishment of debt and depreciation and amortization.
Adjusted EBITDA further excludes the impact of the costs
related to acquisition and integration, acquisition earn out, the
costs of exiting the Russian market and share-based payments.
Energizer Holdings, Inc.
Supplemental Schedules - Segment Information and Supplemental Sales
Data
For the Quarter and Six Months Ended March
31, 2022
(In millions - Unaudited)
As of October 1, 2021, the Company
has changed its reportable segments from two geographical segments,
previously Americas and International, to two product groupings,
Battery & Lights and Auto Care. This change came with the
completion of the Spectrum Holdings, Inc. Battery and Auto Care
Acquisition integrations in the first fiscal quarter of 2022. The
Company changed its reporting structure to better reflect what the
chief operating decision maker is reviewing to make organizational
decisions and resource allocations. The Company has recast the
information for the quarter and six months ended March 31,
2021 to align with this presentation.
Energizer's operating model includes a combination of standalone
and shared business functions between the product segments, varying
by country and region of the world. Shared functions include the
sales and marketing functions, as well as human resources, IT and
finance shared service costs. Energizer applies a fully allocated
cost basis, in which shared business functions are allocated
between segments. Such allocations are estimates, and do not
represent the costs of such services if performed on a standalone
basis. Segment sales and profitability, as well as the
reconciliation to earnings before income taxes for the quarters and
six months ended March 31, 2022 and 2021, respectively, are
presented below:
|
Quarters Ended
March 31,
|
|
Six Months Ended
March 31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net
Sales
|
|
|
|
|
|
|
|
Batteries &
Lights
|
$
516.5
|
|
$
542.9
|
|
$
1,256.7
|
|
$
1,286.8
|
Auto Care
|
168.9
|
|
142.2
|
|
275.0
|
|
246.9
|
Total net
sales
|
$
685.4
|
|
$
685.1
|
|
$
1,531.7
|
|
$
1,533.7
|
Segment
Profit
|
|
|
|
|
|
|
|
Batteries &
Lights
|
95.3
|
|
125.4
|
|
263.7
|
|
305.9
|
Auto Care
|
24.3
|
|
28.9
|
|
24.1
|
|
47.2
|
Total segment
profit
|
$
119.6
|
|
$
154.3
|
|
$
287.8
|
|
$
353.1
|
General corporate and other expenses (1)
|
(25.6)
|
|
(25.8)
|
|
(47.3)
|
|
(49.8)
|
Amortization of intangible assets
|
(15.2)
|
|
(15.3)
|
|
(30.4)
|
|
(30.8)
|
Acquisition and integration costs (2)
|
—
|
|
(16.8)
|
|
(16.5)
|
|
(35.1)
|
Acquisition earn out (3)
|
—
|
|
(1.1)
|
|
(1.1)
|
|
(1.1)
|
Loss on extinguishment of debt
|
—
|
|
(70.0)
|
|
—
|
|
(75.7)
|
Interest expense
|
(38.3)
|
|
(39.1)
|
|
(75.3)
|
|
(86.4)
|
Exit of Russian market (4)
|
(14.0)
|
|
—
|
|
(14.0)
|
|
—
|
Other items, net - Adjusted (5)
|
1.5
|
|
0.1
|
|
1.3
|
|
(0.6)
|
Total
earnings/(loss) before income taxes
|
$
28.0
|
|
$
(13.7)
|
|
$
104.5
|
|
$
73.6
|
|
|
(1)
|
Recorded in SG&A
on the Consolidated (Condensed) Statement of Earnings.
|
(2)
|
See the Supplemental
Schedules - Non-GAAP Reconciliations for the line items where these
charges are recorded in the Consolidated (Condensed) Statement of
Earnings.
|
(3)
|
This represents the
earn out achieved through March 31, 2021 under the incentive
agreements entered into with the fiscal 2021 acquisition of a
formulations company, and is recorded in SG&A on the
Consolidated (Condensed) Statement of Earnings.
|
(4)
|
These are the costs
associated with the exit of the Russian market during the second
quarter of fiscal 2022. See the Supplemental Non-GAAP
reconciliation for the line items where these charges are recorded
in the Consolidated (Condensed) Statement of Earnings.
|
(5)
|
See the Supplemental
Non-GAAP reconciliation for the Other items, net reconciliation
between the reported and adjusted balances.
|
Supplemental segment information is presented below for
depreciation and amortization:
Energizer
Holdings, Inc.
Supplemental Schedules - Segment Information and Supplemental Sales
Data
For the Quarter and Six Months Ended March 31, 2022
(In millions - Unaudited)
|
|
|
|
|
|
Quarters Ended
March 31,
|
|
Six Months Ended
March 31,
|
Depreciation and
amortization
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Batteries &
Lights
|
$
11.7
|
|
$
11.9
|
|
$
23.9
|
|
$
23.9
|
Auto Care
|
2.3
|
|
1.7
|
|
4.3
|
|
4.0
|
Total segment
depreciation and amortization
|
$
14.0
|
|
$
13.6
|
|
$
28.2
|
|
$
27.9
|
Amortization of
intangible assets
|
15.2
|
|
15.3
|
|
30.4
|
|
30.8
|
Total depreciation
and amortization
|
$
29.2
|
|
$
28.9
|
|
$
58.6
|
|
$
58.7
|
Energizer
Holdings, Inc.
Supplemental Schedules - GAAP EPS to Adjusted EPS
Reconciliation
For the Quarter Ended March 31, 2022
(In millions, except per share data - Unaudited)
|
|
The following tables
provide a reconciliation of Net earnings and Diluted net earnings
per common share to Adjusted net
earnings and Adjusted diluted net earnings per share, which are
non-GAAP measures.
|
|
|
For the Quarters
Ended
March 31,
|
|
For the Six Months
Ended
March 31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net earnings/(loss)
attributable to common shareholders
|
$
19.0
|
|
$
(14.3)
|
|
$
75.0
|
|
$
48.8
|
Mandatory preferred
stock dividends
|
—
|
|
(4.1)
|
|
(4.0)
|
|
(8.1)
|
Net
earnings/(loss)
|
19.0
|
|
(10.2)
|
|
79.0
|
|
56.9
|
Pre-tax
adjustments
|
|
|
|
|
|
|
|
Acquisition and
integration (1)
|
—
|
|
16.8
|
|
16.5
|
|
35.1
|
Acquisition earn
out
|
—
|
|
1.1
|
|
1.1
|
|
1.1
|
Loss on
extinguishment of debt
|
—
|
|
70.0
|
|
—
|
|
75.7
|
Exit of Russian
market (1)
|
14.0
|
|
—
|
|
14.0
|
|
—
|
Total adjustments,
pre-tax
|
$
14.0
|
|
$
87.9
|
|
$
31.6
|
|
$
111.9
|
After tax
adjustments
|
|
|
|
|
|
|
|
Acquisition and
integration
|
—
|
|
12.9
|
|
13.0
|
|
27.3
|
Acquisition earn
out
|
—
|
|
0.8
|
|
0.8
|
|
0.8
|
Loss on
extinguishment of debt
|
—
|
|
53.3
|
|
—
|
|
58.0
|
Exit of Russian
market (1)
|
14.3
|
|
—
|
|
14.3
|
|
—
|
Total adjustments,
after tax
|
$
14.3
|
|
$
67.0
|
|
$
28.1
|
|
$
86.1
|
Adjusted net earnings
(2)
|
$
33.3
|
|
$
56.8
|
|
$
107.1
|
|
$
143.0
|
Mandatory preferred
stock dividends
|
—
|
|
(4.1)
|
|
(4.0)
|
|
(8.1)
|
Adjusted net earnings
attributable to common shareholders
|
$
33.3
|
|
$
52.7
|
|
$
103.1
|
|
$
134.9
|
|
|
|
|
|
|
|
|
Diluted net
earnings/(loss) per common share
|
$
0.27
|
|
$
(0.21)
|
|
$
1.09
|
|
$
0.71
|
Adjustments
|
|
|
|
|
|
|
|
Acquisition and
integration
|
—
|
|
0.19
|
|
0.18
|
|
0.37
|
Acquisition earn
out
|
—
|
|
0.01
|
|
0.01
|
|
0.01
|
Loss on
extinguishment of debt
|
—
|
|
0.78
|
|
—
|
|
0.79
|
Exit of Russian
market (1)
|
0.20
|
|
—
|
|
0.20
|
|
—
|
Impact for diluted
share calculation (3)
|
—
|
|
—
|
|
0.01
|
|
0.07
|
Adjusted diluted net
earnings per diluted common share (3)
|
$
0.47
|
|
$
0.77
|
|
$
1.49
|
|
$
1.95
|
Weighted average
shares of common stock - Diluted
|
71.6
|
|
68.4
|
|
69.0
|
|
68.8
|
Adjusted Weighted
average shares of common stock - Diluted (3)
|
71.6
|
|
68.6
|
|
71.8
|
|
73.4
|
|
|
(1)
|
See Supplemental
Schedules - Non-GAAP Reconciliations for the line items where these
costs are recorded on the unaudited Consolidated (Condensed)
Statement of Earnings.
|
(2)
|
The effective tax
rate for the Adjusted - Non-GAAP Earnings and Diluted EPS for the
quarters ended March 31, 2022 and 2021 was 20.7% and 23.5%,
respectively, and for the six months ended March 31, 2022 and 2021
was 21.3% and 22.9%, respectively, as calculated utilizing the
statutory rate for where the costs were incurred.
|
(3)
|
During the quarter
ended March 31, 2022, the mandatory convertible preferred shares
were converted to approximately 4.7 million common stock. For the
six months ended March 31, 2022, the full conversion was dilutive
and the mandatory preferred stock dividends are excluded from net
earnings in the Adjusted dilution calculation.
|
For the quarter ended March 31,
2021, the Adjusted Weighted average shares of common stock -
Diluted includes the dilutive impact of our outstanding performance
shares, restricted stock and mandatory preferred stock dividends as
they are dilutive to the calculation. The conversion of the
mandatory convertible preferred stock was not dilutive for the
quarter ended March 31, 2021. For the
six months ended March 31, 2021, the
diluted net earnings per common share is assuming the conversion of
the mandatory convertible preferred stock to 4.6 million shares of
common stock, and excluding the mandatory preferred stock dividends
from net earnings.
Energizer
Holdings, Inc. Supplemental Schedules - Segment
Sales For the Quarter and Six Months Ended March 31,
2022 (In millions - Unaudited)
|
|
Net
sales
|
Q1'22
|
|
%
Chg
|
|
Q2'22
|
|
%
Chg
|
|
Six Months
'22
|
|
%
Chg
|
Batteries &
Lights
|
|
|
|
|
|
|
|
|
|
|
|
Net sales - prior
year
|
$
743.9
|
|
|
|
$
542.9
|
|
|
|
$
1,286.8
|
|
|
Organic
|
(1.7)
|
|
(0.2)%
|
|
(18.9)
|
|
(3.5)%
|
|
$
(20.6)
|
|
(1.6)%
|
Change in
Argentina
|
2.4
|
|
0.3%
|
|
1.4
|
|
0.3%
|
|
$
3.8
|
|
0.3%
|
Impact of
currency
|
(4.4)
|
|
(0.6)%
|
|
(8.9)
|
|
(1.7)%
|
|
$
(13.3)
|
|
(1.0)%
|
Net sales -
current year
|
$
740.2
|
|
(0.5)%
|
|
$
516.5
|
|
(4.9)%
|
|
$
1,256.7
|
|
(2.3)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Auto
Care
|
|
|
|
|
|
|
|
|
|
|
|
Net sales - prior
year
|
$
104.7
|
|
|
|
$
142.2
|
|
|
|
$
246.9
|
|
|
Organic
|
1.4
|
|
1.3%
|
|
27.6
|
|
19.4%
|
|
$
29.0
|
|
11.7%
|
Impact of
currency
|
—
|
|
—%
|
|
(0.9)
|
|
(0.6)%
|
|
$
(0.9)
|
|
(0.3)%
|
Net sales -
current year
|
$
106.1
|
|
1.3%
|
|
$
168.9
|
|
18.8%
|
|
$
275.0
|
|
11.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
Net sales - prior
year
|
$
848.6
|
|
|
|
$
685.1
|
|
|
|
$
1,533.7
|
|
|
Organic
|
(0.3)
|
|
—%
|
|
8.7
|
|
1.3%
|
|
$
8.4
|
|
0.5%
|
Change in
Argentina
|
2.4
|
|
0.3%
|
|
1.4
|
|
0.2%
|
|
$
3.8
|
|
0.2%
|
Impact of
currency
|
(4.4)
|
|
(0.6)%
|
|
(9.8)
|
|
(1.5)%
|
|
$
(14.2)
|
|
(0.8)%
|
Net sales -
current year
|
$
846.3
|
|
(0.3)%
|
|
$
685.4
|
|
—%
|
|
$
1,531.7
|
|
(0.1)%
|
Energizer
Holdings, Inc. Supplemental Schedules - Segment
Profit For the Quarter and Six Months Ended March 31,
2022 (In millions - Unaudited)
|
|
Segment
profit
|
Q1'22
|
|
%
Chg
|
|
Q2'22
|
|
%
Chg
|
|
Six Months
'22
|
|
%
Chg
|
Batteries &
Lights
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit -
prior year
|
$
180.5
|
|
|
|
$
125.4
|
|
|
|
$
305.9
|
|
|
Organic
|
(15.9)
|
|
(8.8)%
|
|
(27.3)
|
|
(21.8)%
|
|
(43.2)
|
|
(14.1)%
|
Change in
Argentina
|
3.0
|
|
1.7%
|
|
1.1
|
|
0.9%
|
|
4.1
|
|
1.3%
|
Impact of
currency
|
0.8
|
|
0.4%
|
|
(3.9)
|
|
(3.1)%
|
|
(3.1)
|
|
(1.0)%
|
Segment profit -
current year
|
$
168.4
|
|
(6.7)%
|
|
$
95.3
|
|
(24.0)%
|
|
$
263.7
|
|
(13.8)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Auto
Care
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit -
prior year
|
$
18.3
|
|
|
|
$
28.9
|
|
|
|
$
47.2
|
|
|
Organic
|
(18.4)
|
|
(100.5)%
|
|
(4.0)
|
|
(13.8)%
|
|
(22.4)
|
|
(47.5)%
|
Impact of
currency
|
(0.1)
|
|
(0.6)%
|
|
(0.6)
|
|
(2.1)%
|
|
$
(0.7)
|
|
(1.4)%
|
Segment profit -
current year
|
$
(0.2)
|
|
(101.1)%
|
|
$
24.3
|
|
(15.9)%
|
|
$
24.1
|
|
(48.9)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Segment
Profit
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit -
prior year
|
$
198.8
|
|
|
|
$
154.3
|
|
|
|
$
353.1
|
|
|
Organic
|
(34.3)
|
|
(17.3)%
|
|
(31.3)
|
|
(20.3)%
|
|
(65.6)
|
|
(18.6)%
|
Change in
Argentina
|
3.0
|
|
1.5%
|
|
1.1
|
|
0.7%
|
|
4.1
|
|
1.2%
|
Impact of
currency
|
0.7
|
|
0.4%
|
|
(4.5)
|
|
(2.9)%
|
|
(3.8)
|
|
(1.1)%
|
Segment profit -
current year
|
$
168.2
|
|
(15.4)%
|
|
$
119.6
|
|
(22.5)%
|
|
$
287.8
|
|
(18.5)%
|
Energizer
Holdings, Inc. Supplemental Schedules - Non-GAAP
Reconciliations For the Quarter and Six Months Ended
March 31, 2022 (In millions - Unaudited)
|
|
Gross
profit
|
Q1'22
|
Q2'22
|
|
Q1'21
|
Q2'21
|
|
Q2'22
YTD
|
|
Q2'21
YTD
|
Net sales
|
$
846.3
|
$
685.4
|
|
$
848.6
|
$
685.1
|
|
$
1,531.7
|
|
$
1,533.7
|
Cost of products sold
- adjusted
|
528.7
|
446.3
|
|
503.0
|
407.3
|
|
975.0
|
|
910.3
|
Adjusted Gross
profit
|
$
317.6
|
$
239.1
|
|
$
345.6
|
$
277.8
|
|
$
556.7
|
|
$
623.4
|
Adjusted Gross
margin
|
37.5%
|
34.9%
|
|
40.7%
|
40.5%
|
|
36.3%
|
|
40.6%
|
Acquisition and
integration costs
|
6.0
|
—
|
|
7.7
|
7.3
|
|
6.0
|
|
15.0
|
Exit of Russian
market
|
—
|
0.7
|
|
—
|
—
|
|
0.7
|
|
—
|
Reported Cost of
products sold
|
534.7
|
447.0
|
|
510.7
|
414.6
|
|
981.7
|
|
925.3
|
Gross
profit
|
$
311.6
|
$
238.4
|
|
$
337.9
|
$
270.5
|
|
$
550.0
|
|
$
608.4
|
Gross
margin
|
36.8%
|
34.8%
|
|
39.8%
|
39.5%
|
|
35.9%
|
|
39.7%
|
|
|
|
|
|
|
|
|
|
|
SG&A
|
Q1'22
|
Q2'22
|
|
Q1'21
|
Q2'21
|
|
Q2'22
YTD
|
|
Q2'21
YTD
|
Segment
SG&A
|
$
89.9
|
$
92.0
|
|
$
89.7
|
$
88.3
|
|
$
181.9
|
|
$
178.0
|
Corporate
SG&A
|
21.7
|
25.6
|
|
24.0
|
25.8
|
|
47.3
|
|
49.8
|
SG&A Adjusted
- subtotal
|
$
111.6
|
$
117.6
|
|
$
113.7
|
$
114.1
|
|
$
229.2
|
|
$
227.8
|
SG&A Adjusted
% of Net sales
|
13.2%
|
17.2%
|
|
13.4%
|
16.7%
|
|
15.0%
|
|
14.9%
|
Acquisition and
integration costs
|
9.4
|
—
|
|
10.4
|
8.6
|
|
9.4
|
|
19.0
|
Acquisition earn
out
|
1.1
|
—
|
|
—
|
1.1
|
|
1.1
|
|
1.1
|
Exit of Russian
market
|
—
|
5.8
|
|
—
|
—
|
|
5.8
|
|
—
|
Reported
SG&A
|
$
122.1
|
$
123.4
|
|
$
124.1
|
$
123.8
|
|
$
245.5
|
|
$
247.9
|
Reported SG&A
% of Net sales
|
14.4%
|
18.0%
|
|
14.6%
|
18.1%
|
|
16.0%
|
|
16.2%
|
|
|
|
|
|
|
|
|
|
|
Other items,
net
|
Q1'22
|
Q2'22
|
|
Q1'21
|
Q2'21
|
|
Q2'22
YTD
|
|
Q2'21
YTD
|
Interest
income
|
$
(0.2)
|
$
(0.3)
|
|
$
(0.1)
|
$
(0.2)
|
|
$
(0.5)
|
|
$
(0.3)
|
Foreign currency
exchange loss
|
1.3
|
(0.1)
|
|
1.3
|
0.5
|
|
1.2
|
|
1.8
|
Pension benefit other
than service costs
|
(1.1)
|
(1.1)
|
|
(0.5)
|
(0.5)
|
|
(2.2)
|
|
(1.0)
|
Other
|
0.2
|
—
|
|
—
|
0.1
|
|
0.2
|
|
0.1
|
Other items, net -
Adjusted
|
$
0.2
|
$
(1.5)
|
|
$
0.7
|
$
(0.1)
|
|
$
(1.3)
|
|
$
0.6
|
Exit of Russian
market
|
—
|
7.5
|
|
—
|
—
|
|
7.5
|
|
—
|
Other
|
—
|
—
|
|
0.1
|
—
|
|
—
|
|
0.1
|
Total Other items,
net
|
$
0.2
|
$
6.0
|
|
$
0.8
|
$
(0.1)
|
|
$
6.2
|
|
$
0.7
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration
|
Q1'22
|
Q2'22
|
|
Q1'21
|
Q2'21
|
|
Q2'22
YTD
|
|
Q2'21
YTD
|
Cost of products
sold
|
$
6.0
|
$
—
|
|
$
7.7
|
$
7.3
|
|
$
6.0
|
|
$
15.0
|
SG&A
|
9.4
|
—
|
|
10.4
|
8.6
|
|
9.4
|
|
19.0
|
Research and
development
|
1.1
|
—
|
|
0.1
|
0.9
|
|
1.1
|
|
1.0
|
Other items,
net
|
—
|
—
|
|
0.1
|
—
|
|
—
|
|
0.1
|
Acquisition and
integration related items
|
$
16.5
|
$
—
|
|
$
18.3
|
$
16.8
|
|
$
16.5
|
|
$
35.1
|
Energizer
Holdings, Inc. Supplemental Schedules - Non-GAAP
Reconciliations cont. For the Quarter and Six Months
Ended March 31, 2022 (In millions -
Unaudited)
|
|
|
Q2'22
|
|
Q1'22
|
|
Q4'21
|
|
Q3'21
|
|
LTM 03/31/22
(1)
|
|
Q2'21
|
Net
earnings/(loss)
|
$
19.0
|
|
$
60.0
|
|
$
83.2
|
|
$
20.8
|
|
$
183.0
|
|
$
(10.2)
|
Income tax
provision/(benefit)
|
9.0
|
|
16.5
|
|
(26.2)
|
|
2.8
|
|
2.1
|
|
(3.5)
|
Earnings/(loss)
before income taxes
|
28.0
|
|
76.5
|
|
57.0
|
|
23.6
|
|
185.1
|
|
(13.7)
|
Interest
expense
|
38.3
|
|
37.0
|
|
36.8
|
|
38.6
|
|
150.7
|
|
39.1
|
Loss on
extinguishment of debt
|
—
|
|
—
|
|
—
|
|
27.6
|
|
27.6
|
|
70.0
|
Depreciation &
Amortization
|
29.2
|
|
29.4
|
|
29.8
|
|
30.0
|
|
118.4
|
|
28.9
|
EBITDA
|
$
95.5
|
|
$
142.9
|
|
$
123.6
|
|
$
119.8
|
|
$
481.8
|
|
$
124.3
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition
and integration costs
|
—
|
|
16.5
|
|
14.3
|
|
19.5
|
|
50.3
|
|
16.8
|
Exit of
Russian market
|
14.0
|
|
—
|
|
—
|
|
—
|
|
14.0
|
|
—
|
Acquisition
earn out
|
—
|
|
1.1
|
|
1.1
|
|
1.2
|
|
3.4
|
|
1.1
|
Share-based
payments
|
5.1
|
|
1.3
|
|
(3.1)
|
|
3.9
|
|
7.2
|
|
5.4
|
Adjusted
EBITDA
|
$
114.6
|
|
$
161.8
|
|
$
135.9
|
|
$
144.4
|
|
$
556.7
|
|
$
147.6
|
|
(1) LTM defined as
the latest 12 months for the period ending March 31,
2022.
|
Energizer
Holdings, Inc. Supplemental Schedules - Non-GAAP
Reconciliations cont. FY 2022 Outlook (In
millions - Unaudited)
|
|
|
|
|
|
|
|
|
Fiscal Year 2022
Outlook Reconciliation - Adjusted earnings and diluted net earnings
per common share -(EPS)
|
(in millions,
except per share data)
|
Adjusted Net
earnings
|
|
Adjusted
EPS
|
Fiscal Year 2022 -
GAAP Outlook
|
$187
|
to
|
$210
|
|
$2.61
|
to
|
$2.91
|
Impacts:
|
|
|
|
|
|
|
|
Acquisition and
integration costs, net of tax benefit
|
13
|
to
|
13
|
|
0.18
|
to
|
0.18
|
Acquisition earn
out
|
1
|
|
1
|
|
0.01
|
|
0.01
|
Exit of Russian
operations, net of tax
|
14
|
|
14
|
|
0.20
|
|
0.20
|
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
|
$187
|
to
|
$210
|
Income tax
provision
|
40
|
to
|
68
|
Earnings before
income taxes
|
$227
|
to
|
$278
|
Interest
expense
|
151
|
to
|
145
|
Amortization
|
65
|
to
|
60
|
Depreciation
|
65
|
to
|
60
|
EBITDA
|
$508
|
to
|
$543
|
|
|
|
|
Adjustments:
|
|
|
|
Integration
costs
|
17
|
to
|
17
|
Acquisition
earn out
|
1
|
to
|
1
|
Exit of
Russian operation
|
14
|
to
|
14
|
Share-based
payments
|
20
|
to
|
15
|
Adjusted
EBITDA
|
$560
|
to
|
$590
|
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SOURCE Energizer Holdings, Inc.