- Net Sales for the fourth quarter up 2.6% to prior year,
driven by organic growth of 2.0%.(1)
- Gross margin for the fourth quarter of 37.9% and on an
adjusted basis 40.0%, up 380 basis points to prior year largely
driven by the benefits of Project Momentum
initiatives.(1)
- Operating cash flow of $395.2
million and Free cash flow of 11.5% of Net Sales for the
fiscal year.(1)
- Reduced net leverage by 0.6 times in fiscal 2023 driven by
$225 million of debt pay down and
over 5% Adjusted EBITDA growth.(1)
- Company expects fiscal 2024 organic revenue to be flat to
down low single digits, and Adjusted EBITDA and Adjusted earnings
per share to be up low single digits and in the range of
$600 to $620
million and $3.10 to
$3.30,
respectively.(1)
ST.
LOUIS, Nov. 14, 2023 /PRNewswire/ -- Energizer
Holdings, Inc. (NYSE: ENR) today announced results for the
fourth fiscal quarter and full fiscal year, which ended
September 30, 2023.
"The fourth fiscal quarter provided a strong finish to fiscal
year 2023," said Mark LaVigne, Chief
Executive Officer. "In a year impacted by continued macro-economic
pressures, we delivered full year adjusted earnings and adjusted
EBITDA within our original guided range and took actions to
position the business for future success."
"We made significant progress in advancing Project Momentum,
unlocking over $50 million in
efficiencies in the year. This contributed to the successful
delivery against our strategic priorities – restoration of gross
margin, healthy free cash flow generation, and reduction of debt –
while allowing us to invest in new tools and capabilities to fuel
our long-term financial algorithm."
"As we look ahead, we expect macroeconomic uncertainty to
persist in 2024. Our focus is on continuing to execute against the
key strategic priorities that served us and our shareholders in
2023."
__________________
|
(1)
|
See Press Release
attachments and supplemental schedules for additional information,
including the GAAP to Non-GAAP reconciliations.
|
Top-Line Performance
Net sales were $811.1 million for
the fourth fiscal quarter compared to $790.4
million in the prior year period and $2,959.7 million for the fiscal year compared to
$3,050.1 million for the prior fiscal
year.
|
|
Fourth
Quarter
|
|
% Chg
|
|
Full Fiscal
Year
|
|
% Chg
|
Net Sales -
FY'22
|
|
$
790.4
|
|
|
|
$ 3,050.1
|
|
|
Organic
|
|
15.8
|
|
2.0 %
|
|
(31.6)
|
|
(1.0) %
|
Change in
Russia
|
|
—
|
|
— %
|
|
(12.6)
|
|
(0.4) %
|
Change in Argentina
operations
|
|
(2.2)
|
|
(0.3) %
|
|
(5.3)
|
|
(0.2) %
|
Impact of
currency
|
|
7.1
|
|
0.9 %
|
|
(40.9)
|
|
(1.4) %
|
Net Sales -
FY'23
|
|
$
811.1
|
|
2.6 %
|
|
$ 2,959.7
|
|
(3.0) %
|
For the fiscal quarter, organic net sales increased 2.0% due to
the following items: (1)
- The continued benefit of global pricing actions in both the
battery and auto care businesses contributed approximately 1.5% to
organic sales;
- Battery volumes increased by approximately 1% as earlier timing
of holiday orders compared to prior year were partially offset by
lower replenishment volume related to weaker performance in
non-tracked customers and channel shifting favoring value
offerings; and
- Partially offsetting the increases were volume declines of
approximately 0.5% from lost battery distribution in international
markets.
For the fiscal year, organic net sales decreased 1.0% due to the
following items: (1)
- Volume declines of approximately 7.5% due to lower category
volumes across both battery and auto care from higher retail
pricing and general economic conditions impacting category
performance and weaker battery performance across non-tracked
channels;
- Volume declines of approximately 1.0% from the planned exit of
low margin business, a decline in our sales to device manufacturers
due to their delay of new product launches and fourth quarter lost
battery distribution in international markets; and
- Partially offsetting these declines was the continued benefit
of global pricing actions in both the battery and auto care
businesses which increased organic sales by approximately
7.5%.
Gross Margin
Gross margin percentage on a reported basis for the fourth
fiscal quarter was 37.9%, versus 36.1% in the prior year quarter.
Excluding the current year restructuring costs and the prior year
costs from the flooding of our Brazilian manufacturing facility and
exiting the Russian market, Gross margin was 40.0%, up 380 basis
points from the prior year quarter and 120 basis points from the
third fiscal quarter of 2023.(1)
Gross margin percentage on a reported basis for fiscal 2023 was
38.0%, versus 36.7% in the prior year. Excluding the current year
restructuring costs and the prior year costs from the flooding of
our Brazilian manufacturing facility, exiting the Russian market
and integration costs, the Gross margin was 39.0% for the fiscal
year, up 170 basis points from prior year.(1)
|
|
Fourth
Quarter
|
|
Full Fiscal
Year
|
Gross Margin - FY'22
Reported
|
|
36.1 %
|
|
36.7 %
|
Prior year impact of
exiting the Russian market, flooding of our
Brazilian manufacturing facility and integration costs
|
|
0.1 %
|
|
0.6 %
|
Adjusted Gross Margin -
FY'22 (1)
|
|
36.2 %
|
|
37.3 %
|
Pricing
|
|
0.5 %
|
|
4.2 %
|
Project Momentum
initiatives
|
|
2.0 %
|
|
1.4 %
|
Mix impact
|
|
— %
|
|
0.1 %
|
Product cost
impacts
|
|
1.0 %
|
|
(3.7) %
|
Currency impact and
other
|
|
0.3 %
|
|
(0.3) %
|
Gross margin - FY'23
Adjusted
|
|
40.0 %
|
|
39.0 %
|
Current year impact of
restructuring costs
|
|
(2.1) %
|
|
(1.0) %
|
Gross margin - FY'23
Reported
|
|
37.9 %
|
|
38.0 %
|
The Gross margin increase for the quarter was driven by Project
Momentum savings of approximately $19
million, a decline in product costs as freight and other
costs have stabilized and declined slightly from prior year, as
well as the continued benefit of pricing initiatives and positive
currency impacts.
The Gross margin increase for the year was primarily driven by
the continued benefit of pricing initiatives and Project Momentum
savings of approximately $47 million.
Partially offsetting this improvement was higher operating costs
for the full year, including raw material costs, as well as adverse
currency impacts.
Selling, General and Administrative Expense
(SG&A)
SG&A for the fourth fiscal quarter was 14.2% of net sales,
or $115.5 million, as compared to
15.1% of net sales, or $119.2
million, in the prior year when excluding restructuring and
related costs in both years. The decrease was primarily driven by
Project Momentum savings in the current year quarter.
(1)
SG&A for fiscal 2023 was $459.4
million, or 15.5% of net sales, as compared to $467.3 million, or 15.3% of net sales, in the
prior year when excluding restructuring and related costs,
acquisition and integration costs, acquisition earn out and the
exit of the Russian market. The year-over-year decrease was
primarily driven by Project Momentum savings, favorable currency
impacts and lower environmental costs this year due to a charge
taken in the prior year related to a legacy facility that had been
sold by the Company. These decreases were partially offset by
higher compensation expense and factoring fees in the current
year.(1)
Advertising and Promotion Expense (A&P)
A&P was 4.1% of net sales for the fourth fiscal quarter and
4.8% of net sales for fiscal 2023. A&P spending in the prior
year was 3.5% for the fourth fiscal quarter of 2022 and 4.5% for
fiscal 2022. For the quarter, this was a increase of 60 basis
points, or $5.6 million and for
fiscal 2023 this was an increase of 30 basis points or $5.2 million.
Earnings Per Share
and Adjusted EBITDA
|
|
Fourth
Quarter
|
|
Full Fiscal
Year
|
(In millions, except
per share data)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net
earnings/(loss)
|
|
$ 19.7
|
|
$
(362.9)
|
|
$
140.5
|
|
$
(231.5)
|
Diluted net
earnings/(loss) per common share
|
|
$ 0.27
|
|
$
(5.09)
|
|
$ 1.94
|
|
$ (3.37)
|
|
|
|
|
|
|
|
|
|
Adjusted net
earnings(1)
|
|
$ 86.8
|
|
$ 58.5
|
|
$
224.0
|
|
$
221.1
|
Adjusted diluted net
earnings per common share(1)
|
|
$ 1.20
|
|
$ 0.82
|
|
$ 3.09
|
|
$ 3.08
|
Adjusted
EBITDA(1)
|
|
$
185.4
|
|
$
146.0
|
|
$
597.3
|
|
$
567.9
|
|
|
|
|
|
|
|
|
|
Currency neutral
Adjusted diluted net earnings per common
share(1)
|
|
$ 1.17
|
|
|
|
$ 3.32
|
|
|
Currency neutral
Adjusted EBITDA(1)
|
|
$
182.9
|
|
|
|
$
618.6
|
|
|
The increase in net earnings in the quarter and fiscal year was
driven by the prior year non-cash pre-tax impairment charge of
$541.9 million compared to no
impairments in fiscal 2023. This was partially offset by the fourth
quarter settlement charge on the US pension plan annuity buy out
and recognition of $50.2 million of
previously unamortized actuarial losses.
For the fourth fiscal quarter, the increase in Adjusted earnings
per share and Adjusted EBITDA reflects the increase in organic Net
sales and Gross margin improvement, including lower transportation
cost, as well as the decrease in SG&A and R&D spend, and
overall favorable currency movements. This was partially
offset by the higher A&P spend in the current year. Adjusted
earnings per share further benefited from lower amortization
expense, and lower interest expense as the Company's overall debt
balance has decreased, partially offset by higher tax expense in
the current year quarter.
For the full year, Adjusted net earnings per share and Adjusted
EBITDA reflects the Gross margin improvement as well as decreases
in SG&A and R&D spend. This was partially offset by
higher A&P spend and the unfavorable currency movement in the
full year. Adjusted earnings per share was further impacted by
higher interest expense due to the higher interest rates in fiscal
2023 as well as higher tax expense.
For the quarter, currency had a favorable pre-tax impact of
$2.5 million, or $0.03 per share, and for fiscal 2023, currency
had an unfavorable pre-tax impact of $21.3
million, or $0.23 per
share.
Capital Allocation
- Operating cash flow for the quarter was $98.9 million and for fiscal 2023 was
$395.2 million. Fiscal year 2023 free
cash flow was $339.1 million, or
11.5% of Net Sales, as the Company continued the return to more
normalized working capital levels.
- The Company paid down an additional $25
million of debt in the fourth quarter and $225 million in fiscal 2023. In fiscal 2023, Net
debt decreased by $183.6 million and
Net debt to Adjusted EBITDA was 5.2 times as of September 30, 2023, down from 5.8 times as of
September 30, 2022.
- The Company paid dividends in the quarter of approximately
$22 million, or $0.30 per common share. Dividend payments for the
year were $86.3 million, or
$1.20 per common share.
Financial Outlook and Assumptions for Fiscal 2024
(1)
During the course of fiscal 2023, we have successfully executed
against our key priorities to ensure we deliver for our
shareholders in the face of macroeconomic uncertainties. As we
enter fiscal 2024, many of those same headwinds remain and we are
planning accordingly. We plan to continue focusing on our strategic
priorities of gross margin restoration, free cash flow generation
and debt pay down into fiscal 2024.
For fiscal 2024, we expect organic revenue to be flat to down
low single digits. Adjusted EBITDA is expected to be in the range
of $600 million to $620 million and Adjusted earnings per share is
expected to be in the range of $3.10
to $3.30. Savings from Project
Momentum initiatives and lower cost across materials and
transportation are expected to offset declines in net
sales.
For the first quarter, organic revenue is expected to be down 6%
to 8% impacted by projected category trends and the shift in timing
of holiday orders that occurred in the fourth quarter of fiscal
2023. Due to this decline in sales, we expect Adjusted earning per
share to be in the range of $0.50 to
$0.60.
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 2023 financial results and the financial outlook
for fiscal 2024. 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/rxlgQ1vBMZ2
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. 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 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.
- Changes in production costs, including raw material prices and
transportation costs, from inflation or otherwise, have adversely
affected, and in the future could erode, our profit margins and
negatively impact operating results.
- 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.
- 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.
- The Company's future results may be affected by its operational
execution, including scenarios where the Company generates fewer
productivity improvements than estimated.
- If our goodwill and indefinite-lived intangible assets become
impaired, we will be required to record impairment charges, which
may be significant.
- 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.
- 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.
- Our business involves the potential for product liability
claims, 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 government regulations in
both the U.S. and abroad that could impose material costs.
- Increased focus by governmental and non-governmental
organizations, customers, consumers and shareholders on
environmental, social and governance (ESG) issues, including those
related to sustainability and 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.
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 15, 2022.
ENERGIZER HOLDINGS,
INC.
CONSOLIDATED
STATEMENTS OF EARNINGS
(Condensed)
(In millions, except
per share data - Unaudited)
|
|
|
Quarter Ended
September 30,
|
|
Twelve Months
Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Net sales
|
$
811.1
|
|
$
790.4
|
|
$ 2,959.7
|
|
$ 3,050.1
|
Cost of products sold
(1)
|
503.8
|
|
504.9
|
|
1,835.7
|
|
1,930.6
|
Gross profit
|
307.3
|
|
285.5
|
|
1,124.0
|
|
1,119.5
|
Selling, general and
administrative expense (1)
|
134.6
|
|
120.1
|
|
489.4
|
|
484.5
|
Advertising and
promotion expense
|
32.9
|
|
27.3
|
|
142.3
|
|
137.1
|
Research and
development expense (1)
|
8.5
|
|
9.4
|
|
32.9
|
|
34.7
|
Amortization of
intangible assets
|
14.4
|
|
15.3
|
|
59.4
|
|
61.1
|
Impairment of goodwill
and intangible assets (2)
|
—
|
|
541.9
|
|
—
|
|
541.9
|
Interest
expense
|
41.6
|
|
42.0
|
|
168.7
|
|
158.4
|
Loss/(gain) on
extinguishment of debt (3)
|
0.2
|
|
—
|
|
(1.5)
|
|
—
|
Other items, net (1)
(4)
|
52.5
|
|
4.6
|
|
57.1
|
|
7.3
|
Earnings/(loss) before
income taxes
|
22.6
|
|
(475.1)
|
|
175.7
|
|
(305.5)
|
Income tax
expense/(benefit)
|
2.9
|
|
(112.2)
|
|
35.2
|
|
(74.0)
|
Net
earnings/(loss)
|
$
19.7
|
|
$ (362.9)
|
|
$
140.5
|
|
$ (231.5)
|
Mandatory preferred
stock dividends (5)
|
—
|
|
—
|
|
—
|
|
(4.0)
|
Net earnings/(loss)
attributable to common shareholders
|
$
19.7
|
|
$ (362.9)
|
|
$
140.5
|
|
$ (235.5)
|
|
|
|
|
|
|
|
|
Basic net
earnings/(loss) per common share
|
$
0.28
|
|
$
(5.09)
|
|
$
1.97
|
|
$
(3.37)
|
Diluted net
earnings/(loss) per common share (5)
|
$
0.27
|
|
$
(5.09)
|
|
$
1.94
|
|
$
(3.37)
|
|
|
|
|
|
|
|
|
Weighted average shares
of common stock - Basic
|
71.5
|
|
71.3
|
|
71.5
|
|
69.9
|
Weighted average shares
of common stock - Diluted (5)
|
72.6
|
|
71.3
|
|
72.4
|
|
69.9
|
|
|
(1)
|
See the attached
Supplemental Schedules - Non-GAAP Reconciliations, which break out
the Project Momentum restructuring and related costs, the costs
from the flood of our Brazilian manufacturing facility, the gain on
finance lease termination, the costs from exiting the Russian
market, and Acquisition and integration related costs included
within these lines.
|
|
|
(2)
|
The non-cash Impairment
of goodwill and intangible assets for the quarter and twelve months
ended September 30, 2022 relates to the Company's Armor All trade
name impairment of $370.4 million, STP trade name impairment of
$26.3 million, Rayovac trade name impairment of $127.8 and a
goodwill impairment related to the Auto Care International
reporting unit of $17.4 million.
|
|
|
(3)
|
The Loss on the
extinguishment of debt for the quarter ended September 30, 2023
relates to the repayment of term loan in the quarter. The Gain on
extinguishment of debt in the twelve months ended September 30,
2023 relates to the repurchase of outstanding Senior Notes at a
discount, partially offset by the repayment of term
loan.
|
|
|
(4)
|
Other items, net for
the quarter and twelve months ended included a $50.2 million
settlement loss due to the execution of a partial retiree annuity
buy out on the US pension plan in the fourth quarter of fiscal
2023.
|
|
|
(5)
|
During January 2022,
the mandatory convertible preferred shares (MCPS) were converted to
approximately 4.7 million common stock. For the twelve months ended
September 30, 2022, the conversion of the mandatory convertible
preferred shares was anti-dilutive and the mandatory preferred
stock dividends are included in the dilution calculation. The
Company no longer has any MCPS outstanding in fiscal
2023.
|
ENERGIZER HOLDINGS,
INC.
CONSOLIDATED BALANCE
SHEETS
(Condensed)
(In millions -
Unaudited)
|
|
|
|
SEPTEMBER
30,
|
|
|
2023
|
|
2022
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
223.3
|
|
$
205.3
|
Trade
receivables
|
|
511.6
|
|
421.7
|
Inventories
|
|
649.7
|
|
771.6
|
Other current
assets
|
|
172.0
|
|
191.4
|
Total current
assets
|
|
$
1,556.6
|
|
$
1,590.0
|
Property, plant and
equipment, net
|
|
363.7
|
|
362.1
|
Operating lease
assets
|
|
98.4
|
|
100.1
|
Goodwill
|
|
1,016.2
|
|
1,003.1
|
Other intangible
assets, net
|
|
1,237.7
|
|
1,295.8
|
Deferred tax
asset
|
|
88.4
|
|
61.8
|
Other assets
|
|
148.6
|
|
159.2
|
Total assets
|
|
$
4,509.6
|
|
$
4,572.1
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Current maturities of
long-term debt
|
|
$
12.0
|
|
$
12.0
|
Current portion of
finance leases
|
|
0.3
|
|
0.4
|
Notes
payable
|
|
8.2
|
|
6.4
|
Accounts
payable
|
|
370.8
|
|
329.4
|
Current operating
lease liabilities
|
|
17.3
|
|
15.8
|
Other current
liabilities
|
|
325.6
|
|
333.9
|
Total current
liabilities
|
|
$
734.2
|
|
$
697.9
|
Long-term
debt
|
|
3,332.1
|
|
3,499.4
|
Operating lease
liabilities
|
|
84.7
|
|
88.2
|
Deferred tax
liability
|
|
12.4
|
|
17.9
|
Other
liabilities
|
|
135.5
|
|
138.1
|
Total liabilities
|
|
$
4,298.9
|
|
$
4,441.5
|
Shareholders'
equity
|
|
|
|
|
Common
stock
|
|
0.8
|
|
0.8
|
Additional paid-in
capital
|
|
750.5
|
|
828.7
|
Retained
losses
|
|
(164.8)
|
|
(304.7)
|
Treasury
stock
|
|
(238.1)
|
|
(248.9)
|
Accumulated other
comprehensive loss
|
|
(137.7)
|
|
(145.3)
|
Total shareholders'
equity
|
|
$
210.7
|
|
$
130.6
|
Total liabilities and
shareholders' equity
|
|
$
4,509.6
|
|
$
4,572.1
|
ENERGIZER HOLDINGS,
INC.
CONSOLIDATED
STATEMENT OF CASH FLOWS
(Condensed)
(In millions -
Unaudited)
|
|
|
FOR THE YEARS
ENDED
SEPTEMBER 30,
|
|
2023
|
|
2022
|
Cash Flow from
Operating Activities
|
|
|
|
Net
earnings/(loss)
|
$
140.5
|
|
$
(231.5)
|
Adjustments to reconcile net earnings/(loss) to net cash
flow from operations:
|
|
|
|
Non-cash integration
and restructuring charges
|
7.7
|
|
3.0
|
Impairment of goodwill
and intangible assets
|
—
|
|
541.9
|
Depreciation and
amortization
|
122.7
|
|
121.6
|
Deferred income
taxes
|
(38.5)
|
|
(135.3)
|
Share-based
compensation expense
|
21.8
|
|
13.2
|
Gain on finance lease
termination
|
—
|
|
(4.5)
|
Loss on extinguishment
on debt
|
(1.5)
|
|
—
|
Settlement loss on US
pension annuity buy out
|
50.2
|
|
—
|
Non-cash charges for
Brazil flood
|
—
|
|
9.7
|
Non-cash charges for
exiting the Russian market
|
—
|
|
12.6
|
Non-cash items
included in income, net
|
31.9
|
|
6.2
|
Other, net
|
(2.7)
|
|
(1.7)
|
Changes in assets and liabilities used in operations, net of
acquisitions
|
|
|
|
Increase in accounts
receivable, net
|
(80.4)
|
|
(185.5)
|
Decrease/(increase) in
inventories
|
132.3
|
|
(94.2)
|
Decrease in other
current assets
|
10.0
|
|
20.6
|
Increase/(decrease) in
accounts payable
|
35.2
|
|
(113.8)
|
(Decrease)/increase in
other current liabilities
|
(34.0)
|
|
38.7
|
Net cash from
operating activities
|
395.2
|
|
1.0
|
Cash Flow from
Investing Activities
|
|
|
|
Capital
expenditures
|
(56.8)
|
|
(77.8)
|
Proceeds from sale of
assets
|
0.7
|
|
0.6
|
Acquisition of
intangible assets
|
—
|
|
(14.7)
|
Acquisitions, net of
cash acquired and working capital settlements
|
—
|
|
1.0
|
Net cash used by
investing activities
|
(56.1)
|
|
(90.9)
|
Cash Flow from
Financing Activities
|
|
|
|
Cash proceeds from
issuance of debt with original maturities greater than 90
days
|
—
|
|
300.0
|
Payments on debt with
maturities greater than 90 days
|
(222.1)
|
|
(13.7)
|
Net
increase/(decrease) in debt with maturities 90 days or
less
|
1.2
|
|
(99.0)
|
Debt issuance
costs
|
—
|
|
(7.6)
|
Payments to terminate
finance lease obligations
|
—
|
|
(5.1)
|
Dividends paid on
common stock
|
(86.3)
|
|
(84.9)
|
Dividends paid on
mandatory convertible preferred stock
|
—
|
|
(8.1)
|
Taxes paid for
withheld share-based payments
|
(2.2)
|
|
(2.5)
|
Net cash (used
by)/from financing activities
|
(309.4)
|
|
79.1
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
(11.7)
|
|
(22.8)
|
Net increase/(decrease)
in cash, cash equivalents and restricted cash
|
18.0
|
|
(33.6)
|
Cash, cash equivalents
and restricted cash, beginning of period
|
205.3
|
|
238.9
|
Cash, cash equivalents
and restricted cash, end of period
|
$
223.3
|
|
$
205.3
|
ENERGIZER HOLDINGS,
INC.
Supplemental
Schedules
Introduction to the Reconciliation
of GAAP and Non-GAAP Measures
For the
Quarter and Twelve Months ended September 30,
2023
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, and
are used for management incentive compensation. These non-GAAP
financial measures exclude items that are not reflective of the
Company's on-going operating performance, such as restructuring and
related costs, an impairment of goodwill and intangible assets,
acquisition and integration costs, an acquisition earn out, the
loss/(gain) on extinguishment of debt, the settlement loss on US
pension annuity buyout, the costs of exiting the Russian market,
the gain on finance lease termination and the costs of the
May 2022 flooding of our Brazilian
manufacturing facility. 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, impairment of goodwill and intangible assets,
interest expense, loss/(gain) on extinguishment of debt, other
items, net, restructuring and related costs, acquisition and
integration costs, an acquisition earn out, settlement loss
on US pension annuity buyout, the gain on finance lease
termination, the costs of exiting the Russian market and the costs
of the flooding of our Brazilian manufacturing facility 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
restructuring and related costs, impairment of goodwill and
intangible assets, costs related to acquisition and integration, an
acquisition earn out, the loss/(gain) on extinguishment of debt,
the settlement loss on US pension annuity buyout, the gain on
finance lease termination, the costs of exiting the Russian market
and the costs of the flooding of our Brazilian manufacturing
facility.
Non-GAAP Tax Rate. This is the tax rate when excluding
the pre-tax impact of restructuring and related costs, impairment
of goodwill and intangible assets, acquisition and integration
costs, an acquisition earn out, the loss/(gain) on extinguishment
of debt, the settlement loss on US pension annuity buyout, the gain
on finance lease termination, the costs of exiting the Russian
market and the costs of the flooding of our Brazilian manufacturing
facility, 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 Russia and Argentina operations and impact of currency
from the changes in foreign currency exchange rates as defined
below:
Change in Russia Operations. The Company exited the
Russian market in the second quarter of fiscal 2022 due to the
increased global and economic and political uncertainty resulting
from the ongoing conflict between Russia and Ukraine. This adjusts for the change in
Russian sales and segment profit from the prior year post exit.
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 change in foreign currency
exchange rates year-over-year on reported results, which is
calculated by comparing the value of current year foreign
operations at the current period USD exchange rate versus the value
of current year foreign operations at the prior period USD exchange
rate. The impact of currency also includes gains/(losses) of
currency hedging programs, and it excludes hyper-inflationary
markets.
Adjusted Comparisons. Detail for adjusted gross
profit, adjusted gross margin, adjusted SG&A and 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 restructuring and related costs, acquisition and
integration costs, an acquisition earn out, the costs of the
flooding of our Brazilian manufacturing facility, settlement loss
on US pension annuity buyout, the gain on finance lease
termination, and the costs of exiting the Russian market.
EBITDA and Adjusted EBITDA. EBITDA is defined as net
earnings before income tax provision, interest, the loss/(gain) on
extinguishment of debt, and depreciation and amortization.
Adjusted EBITDA further excludes the impact of the costs
related to restructuring, the settlement loss on US pension annuity
buyout, impairment of goodwill and other intangible assets,
acquisition and integration costs, an acquisition earn out, exiting
the Russian market, gains on finance lease termination, the costs
of the flooding of our manufacturing facility in Brazil, and share based payments.
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.
Net Debt. Net Debt is defined as total Company debt,
less cash and cash equivalents.
Currency-neutral. Currency-neutral excludes the Impact of
currency as defined above on key measures. Hyper inflationary
markets are excluded from this calculation.
|
For the Quarter
Ended
September 30,
2023
|
|
Prior
Quarter
Ended
|
|
|
|
|
|
|
%
Change
|
%
Change
|
|
As
Reported
|
Impact of
Currency(1)
|
Currency
Neutral
|
|
September 30,
2022
|
|
As Reported
Basis
|
Currency
Neutral
Basis
|
As Reported under
GAAP
|
|
|
|
|
|
|
|
Diluted net
earnings/(loss) per
common share
|
$
0.27
|
$
0.03
|
$
0.24
|
|
$
(5.09)
|
|
NM(3)
|
NM(3)
|
Net
earnings/(loss)
|
$
19.7
|
$
2.0
|
$
17.7
|
|
$
(362.9)
|
|
NM(3)
|
NM(3)
|
|
|
|
|
|
|
|
|
|
As Adjusted
(non-GAAP)(2)
|
|
|
|
|
|
|
|
Adjusted diluted net
earnings per
common share
|
$
1.20
|
$
0.03
|
$
1.17
|
|
$
0.82
|
|
46.3 %
|
42.7 %
|
Adjusted
EBITDA
|
$
185.4
|
$
2.5
|
$
182.9
|
|
$
146.0
|
|
27.0 %
|
25.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Twelve
Months Ended
September 30,
2023
|
|
Prior
Twelve
Months
Ended
|
|
|
|
|
|
|
%
Change
|
%
Change
|
|
As
Reported
|
Impact of
Currency(1)
|
Currency
Neutral
|
|
September 30,
2022
|
|
As Reported
Basis
|
Currency
Neutral
Basis
|
As Reported under
GAAP
|
|
|
|
|
|
|
|
Diluted net
earnings/(loss) per
common share
|
$
1.94
|
$
(0.23)
|
$
2.17
|
|
$
(3.37)
|
|
NM(3)
|
NM(3)
|
Net
earnings/(loss)
|
$
140.5
|
$
(16.7)
|
$
157.2
|
|
$
(231.5)
|
|
NM(3)
|
NM(3)
|
|
|
|
|
|
|
|
|
|
As Adjusted
(non-GAAP)(2)
|
|
|
|
|
|
|
|
Adjusted diluted net
earnings per
common share
|
$
3.09
|
$
(0.23)
|
$
3.32
|
|
$
3.08
|
|
0.3 %
|
7.8 %
|
Adjusted
EBITDA
|
$
597.3
|
$
(21.3)
|
$
618.6
|
|
$
567.9
|
|
5.2 %
|
8.9 %
|
|
|
(1)
|
The Impact of Currency
is the change in foreign currency exchange rates year-over-year on
reported results, which is calculated by comparing the value of
current year foreign operations at the current period USD exchange
rate versus the value of current year foreign operations at the
prior period USD exchange rate. The impact of currency also
includes gains/(losses) of currency hedging programs, and it
excludes hyper-inflationary markets.
|
|
|
(2)
|
See supplemental
schedules - Non-GAAP Reconciliations for full reconciliations of
the Company's non-GAAP adjusted amounts.
|
|
|
(3)
|
These percentage
calculations are not meaningful.
|
Energizer Holdings,
Inc. Supplemental Schedules - Segment Information and
Supplemental Sales Data For the Quarter and Twelve Months
ended September 30, 2023 (In millions, except per
share data - Unaudited)
|
|
Operations for
Energizer are managed via two product segments: Batteries &
Lights and Auto Care. 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 may not represent the costs of such services if
performed on a standalone basis. Segment sales and profitability,
as well as the reconciliation to earnings/(loss) before income
taxes for the quarters and twelve months ended September 30, 2023
and 2022 are presented below:
|
|
|
For the Quarter
Ended
September 30,
|
|
For the Twelve
Months Ended
September 30,
|
Net
Sales
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Batteries &
Lights
|
$
656.1
|
|
$
639.0
|
|
$
2,344.9
|
|
$
2,427.3
|
Auto Care
|
155.0
|
|
151.4
|
|
614.8
|
|
622.8
|
Total net
sales
|
$
811.1
|
|
$
790.4
|
|
$
2,959.7
|
|
$
3,050.1
|
Segment
Profit
|
|
|
|
|
|
|
|
Batteries &
Lights
|
$
176.8
|
|
$
147.2
|
|
$
551.5
|
|
$
553.6
|
Auto Care
|
17.6
|
|
9.5
|
|
75.0
|
|
46.5
|
Total segment
profit
|
$
194.4
|
|
$
156.7
|
|
$
626.5
|
|
$
600.1
|
General corporate and
other expenses (1)
|
(26.6)
|
|
(26.7)
|
|
(107.2)
|
|
(101.6)
|
Restructuring and
related costs (2)
|
(36.5)
|
|
(0.9)
|
|
(59.7)
|
|
(0.9)
|
Acquisition and
integration costs (2)
|
—
|
|
—
|
|
—
|
|
(16.5)
|
Acquisition earn out (3)
|
—
|
|
—
|
|
—
|
|
(1.1)
|
Amortization of
intangible assets
|
(14.4)
|
|
(15.3)
|
|
(59.4)
|
|
(61.1)
|
Impairment of goodwill
& intangible assets
|
—
|
|
(541.9)
|
|
—
|
|
(541.9)
|
Interest
expense
|
(41.6)
|
|
(42.0)
|
|
(168.7)
|
|
(158.4)
|
(Loss)/gain on
extinguishment of debt
|
(0.2)
|
|
—
|
|
1.5
|
|
—
|
Settlement loss on US
pension annuity buy out (4)
|
(50.2)
|
|
—
|
|
(50.2)
|
|
—
|
Exit of Russian market
(5)
|
—
|
|
(0.6)
|
|
—
|
|
(14.6)
|
Gain on finance lease
termination (6)
|
—
|
|
—
|
|
—
|
|
4.5
|
Brazil flood damage,
net of insurance proceeds (7)
|
—
|
|
0.2
|
|
—
|
|
(9.7)
|
Other items, net -
Adjusted (8)
|
(2.3)
|
|
(4.6)
|
|
(7.1)
|
|
(4.3)
|
Total
earnings/(loss) before income taxes
|
$
22.6
|
|
$
(475.1)
|
|
$
175.7
|
|
$
(305.5)
|
|
|
(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 September 30, 2022 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)
|
The Settlement loss is
due to the execution of a partial retiree annuity buy out on the US
pension plan in the fourth quarter of fiscal 2023. This charge is
included in Other items, net in the Consolidated (Condensed)
Statement of Earnings.
|
(5)
|
These are the costs
associated with the exit of the Russian market during fiscal 2022.
See the Supplemental Non-GAAP reconciliation for the line items
where these charges are recorded in the Consolidated (Condensed)
Statement of Earnings.
|
(6)
|
This represents the
termination of a finance lease in the fiscal year ended September
30, 2022, associated with a facility that was exited as a part of
the Company's 2019 Restructuring program. The gain was recorded in
Other items, net in the Consolidated (Condensed) Statement of
Earnings.
|
(7)
|
These are the costs
associated with the May 2022 flooding of our Brazilian
manufacturing facility, which were recorded in Cost of products
sold on the Consolidated (Condensed) Statement of Earnings, net of
insurance proceeds. The majority is related to write off of damaged
inventory.
|
(8)
|
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 depreciation and
amortization:
|
Energizer Holdings, Inc.
Supplemental Schedules - Segment Information and
Supplemental Sales Data
For the Quarter and Twelve Months ended
September 30, 2023
(In millions, except per share data -
Unaudited)
|
|
|
For the Quarter
Ended
September 30,
|
|
For the Twelve
Months Ended
September 30,
|
Depreciation and
amortization
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Batteries &
Lights
|
$
12.7
|
|
$
14.2
|
|
$
52.2
|
|
$
50.6
|
Auto Care
|
2.6
|
|
3.1
|
|
11.1
|
|
9.9
|
Total segment
depreciation and amortization
|
15.3
|
|
17.3
|
|
63.3
|
|
60.5
|
Amortization of
intangible assets
|
14.4
|
|
15.3
|
|
59.4
|
|
61.1
|
Total depreciation
and amortization
|
$
29.7
|
|
$
32.6
|
|
$
122.7
|
|
$
121.6
|
Energizer Holdings,
Inc.
Supplemental
Schedules - GAAP EPS to Adjusted EPS Reconciliation
For the Quarter and
Twelve Months ended September 30, 2023
(In millions, except
for 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 Quarter
Ended
September 30,
|
|
For the Twelve
Months Ended
September 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net earnings/(loss)
attributable to common shareholders
|
|
$
19.7
|
|
$
(362.9)
|
|
$
140.5
|
|
$
(235.5)
|
Mandatory preferred
stock dividends
|
|
—
|
|
—
|
|
—
|
|
(4.0)
|
Net
earnings/(loss)
|
|
19.7
|
|
(362.9)
|
|
140.5
|
|
(231.5)
|
Pre-tax
adjustments
|
|
|
|
|
|
|
|
|
Restructuring and
related costs (1)
|
|
$
36.5
|
|
$
0.9
|
|
$
59.7
|
|
$
0.9
|
Acquisition and
integration (1)
|
|
—
|
|
—
|
|
—
|
|
16.5
|
Acquisition earn
out
|
|
—
|
|
—
|
|
—
|
|
1.1
|
Impairment of goodwill
& intangible assets
|
|
—
|
|
541.9
|
|
—
|
|
541.9
|
Loss/(gain) on
extinguishment of debt
|
|
0.2
|
|
—
|
|
(1.5)
|
|
—
|
Settlement loss on US
pension annuity buy out (1)
|
|
50.2
|
|
—
|
|
50.2
|
|
—
|
Exit of Russian market
(1)
|
|
—
|
|
0.6
|
|
—
|
|
14.6
|
Gain on finance lease
termination (1)
|
|
—
|
|
—
|
|
—
|
|
(4.5)
|
Brazil flood damage,
net of insurance proceeds (1)
|
|
—
|
|
(0.2)
|
|
—
|
|
9.7
|
Total
adjustments, pre-tax
|
|
$
86.9
|
|
$
543.2
|
|
$
108.4
|
|
$
580.2
|
Total
adjustments, after tax
|
|
$
67.1
|
|
$
421.4
|
|
$
83.5
|
|
$
452.6
|
Adjusted net earnings
(2)
|
|
$
86.8
|
|
$
58.5
|
|
$
224.0
|
|
$
221.1
|
Diluted net
earnings/(loss) per common share
|
|
$
0.27
|
|
$
(5.09)
|
|
$
1.94
|
|
$
(3.37)
|
Adjustments
|
|
|
|
|
|
|
|
|
Restructuring and
related costs (1)
|
|
$
0.40
|
|
$
0.01
|
|
$
0.64
|
|
$
0.01
|
Acquisition and
integration
|
|
—
|
|
(0.01)
|
|
—
|
|
0.17
|
Acquisition earn
out
|
|
—
|
|
—
|
|
—
|
|
0.01
|
Impairment of goodwill
& intangible assets
|
|
—
|
|
5.86
|
|
—
|
|
5.86
|
Loss on extinguishment
of debt
|
|
—
|
|
—
|
|
(0.02)
|
|
—
|
Settlement loss on US
pension annuity buy out (1)
|
|
0.53
|
|
—
|
|
0.53
|
|
—
|
Exit of Russian
market
|
|
—
|
|
(0.03)
|
|
—
|
|
0.17
|
Gain on finance lease
termination
|
|
—
|
|
—
|
|
—
|
|
(0.05)
|
Brazil flood damage,
net of insurance proceeds
|
|
—
|
|
0.05
|
|
—
|
|
0.14
|
Impact for diluted
share calculation (3)
|
|
—
|
|
0.03
|
|
—
|
|
0.14
|
Adjusted diluted net
earnings per diluted common share (3)
|
|
$
1.20
|
|
$
0.82
|
|
$
3.09
|
|
$
3.08
|
Weighted average shares
of common stock - Diluted
|
|
72.6
|
|
71.3
|
|
72.4
|
|
69.9
|
Adjusted Weighted
average shares of common stock - Diluted (3)
|
|
72.6
|
|
71.7
|
|
72.4
|
|
71.7
|
|
|
(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, 2023 and 2022 was 20.7% and 14.1%,
respectively, and for the twelve months ended September 30, 2023
and 2022 was 21.2% and 19.5%, respectively, as calculated utilizing
the statutory rate for where the costs were incurred.
|
|
|
(3)
|
For the quarter and
twelve months ended September 30, 2022, 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. During the year ended
September 30, 2022, the mandatory convertible preferred shares were
converted to approximately 4.7 million common stock. The full
conversion was dilutive and the mandatory preferred stock dividends
are excluded from net earnings in the Adjusted dilution
calculation.
|
Energizer Holdings,
Inc.
Supplemental
Schedules - Segment Sales
For the Quarter and
Twelve Months Ended September 30, 2023
(In millions, except
per share data - Unaudited)
|
|
Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Batteries &
Lights
|
Q1'23
|
|
% Chg
|
|
Q2'23
|
|
% Chg
|
|
Q3'23
|
|
% Chg
|
|
Q4'23
|
|
% Chg
|
|
FY
'23
|
|
% Chg
|
Net sales - prior
year
|
$
740.2
|
|
|
|
$
516.5
|
|
|
|
$
531.6
|
|
|
|
$
639.0
|
|
|
|
$
2,427.3
|
|
|
Organic
|
(34.8)
|
|
(4.7) %
|
|
7.3
|
|
1.4 %
|
|
(11.0)
|
|
(2.1) %
|
|
13.5
|
|
2.1 %
|
|
(25.0)
|
|
(1.0) %
|
Change in Russia
operations
|
(7.3)
|
|
(1.0) %
|
|
(5.0)
|
|
(1.0) %
|
|
—
|
|
— %
|
|
—
|
|
— %
|
|
(12.3)
|
|
(0.5) %
|
Change in Argentina
operations
|
1.3
|
|
0.2 %
|
|
0.5
|
|
0.1 %
|
|
(5.1)
|
|
(1.0) %
|
|
(2.2)
|
|
(0.3) %
|
|
(5.5)
|
|
(0.2) %
|
Impact of
currency
|
(27.8)
|
|
(3.8) %
|
|
(13.4)
|
|
(2.6) %
|
|
(4.2)
|
|
(0.7) %
|
|
5.8
|
|
0.9 %
|
|
(39.6)
|
|
(1.7) %
|
Net sales - current
year
|
$
671.6
|
|
(9.3) %
|
|
$
505.9
|
|
(2.1) %
|
|
$
511.3
|
|
(3.8) %
|
|
$
656.1
|
|
2.7 %
|
|
$
2,344.9
|
|
(3.4) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Auto
Care
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales - prior
year
|
$
106.1
|
|
|
|
$
168.9
|
|
|
|
$
196.4
|
|
|
|
$
151.4
|
|
|
|
$
622.8
|
|
|
Organic
|
(10.8)
|
|
(10.2) %
|
|
10.2
|
|
6.0 %
|
|
(8.3)
|
|
(4.2) %
|
|
2.3
|
|
1.5 %
|
|
(6.6)
|
|
(1.1) %
|
Change in Russia
operations
|
(0.2)
|
|
(0.2) %
|
|
(0.1)
|
|
(0.1) %
|
|
—
|
|
— %
|
|
—
|
|
— %
|
|
(0.3)
|
|
— %
|
Change in Argentina
operations
|
—
|
|
— %
|
|
0.2
|
|
2.0 %
|
|
—
|
|
— %
|
|
—
|
|
— %
|
|
0.2
|
|
— %
|
Impact of
currency
|
(1.6)
|
|
(1.5) %
|
|
(1.0)
|
|
(0.4) %
|
|
—
|
|
— %
|
|
1.3
|
|
0.9 %
|
|
(1.3)
|
|
(0.2) %
|
Net sales - current
year
|
$
93.5
|
|
(11.9) %
|
|
$
178.2
|
|
5.5 %
|
|
$
188.1
|
|
(4.2) %
|
|
$
155.0
|
|
2.4 %
|
|
$
614.8
|
|
(1.3) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales - prior
year
|
$
846.3
|
|
|
|
$
685.4
|
|
|
|
$
728.0
|
|
|
|
$
790.4
|
|
|
|
$
3,050.1
|
|
|
Organic
|
(45.6)
|
|
(5.4) %
|
|
17.5
|
|
2.6 %
|
|
(19.3)
|
|
(2.7) %
|
|
15.8
|
|
2.0 %
|
|
(31.6)
|
|
(1.0) %
|
Change in Russia
operations
|
(7.5)
|
|
(0.9) %
|
|
(5.1)
|
|
(0.7) %
|
|
—
|
|
— %
|
|
—
|
|
— %
|
|
(12.6)
|
|
(0.4) %
|
Change in Argentina
operations
|
1.3
|
|
0.2 %
|
|
0.7
|
|
0.1 %
|
|
(5.1)
|
|
(0.7) %
|
|
(2.2)
|
|
(0.3) %
|
|
(5.3)
|
|
(0.2) %
|
Impact of
currency
|
(29.4)
|
|
(3.5) %
|
|
(14.4)
|
|
(2.2) %
|
|
(4.2)
|
|
(0.5) %
|
|
7.1
|
|
0.9 %
|
|
(40.9)
|
|
(1.4) %
|
Net sales - current
year
|
$
765.1
|
|
(9.6) %
|
|
$
684.1
|
|
(0.2) %
|
|
$
699.4
|
|
(3.9) %
|
|
$
811.1
|
|
2.6 %
|
|
$
2,959.7
|
|
(3.0) %
|
Energizer Holdings,
Inc.
Supplemental
Schedules - Segment Profit
For the Quarter and
Twelve Months Ended September 30, 2023
(In millions, except
per share data - Unaudited)
|
|
Segment
Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Batteries &
Lights
|
Q1'23
|
|
% Chg
|
|
Q2'23
|
|
% Chg
|
|
Q3'23
|
|
% Chg
|
|
Q4'23
|
|
% Chg
|
|
FY
'23
|
|
% Chg
|
Segment Profit - prior
year
|
$
168.4
|
|
|
|
$ 95.3
|
|
|
|
$
142.7
|
|
|
|
$
147.2
|
|
|
|
$
553.6
|
|
|
Organic
|
(15.6)
|
|
(9.3) %
|
|
27.5
|
|
28.9 %
|
|
(16.7)
|
|
(11.7) %
|
|
26.3
|
|
17.9 %
|
|
21.5
|
|
3.9 %
|
Change in Russia
operations
|
(0.6)
|
|
(0.4) %
|
|
(0.6)
|
|
(0.6) %
|
|
—
|
|
— %
|
|
—
|
|
— %
|
|
(1.2)
|
|
(0.2) %
|
Change in Argentina
operations
|
—
|
|
— %
|
|
0.7
|
|
0.7 %
|
|
(1.7)
|
|
(1.2) %
|
|
(0.4)
|
|
(0.3) %
|
|
(1.4)
|
|
(0.3) %
|
Impact of
currency
|
(13.9)
|
|
(8.2) %
|
|
(8.4)
|
|
(8.9) %
|
|
(2.4)
|
|
(1.7) %
|
|
3.7
|
|
2.5 %
|
|
(21.0)
|
|
(3.8) %
|
Segment Profit -
current year
|
$
138.3
|
|
(17.9) %
|
|
$
114.5
|
|
20.1 %
|
|
$
121.9
|
|
(14.6) %
|
|
$
176.8
|
|
20.1 %
|
|
$
551.5
|
|
(0.4) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Auto
Care
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit - prior
year
|
$ (0.2)
|
|
|
|
$ 24.3
|
|
|
|
$ 12.9
|
|
|
|
$
9.5
|
|
|
|
$ 46.5
|
|
|
Organic
|
12.3
|
|
NM *
|
|
5.6
|
|
23.0 %
|
|
4.5
|
|
34.9 %
|
|
7.1
|
|
74.7 %
|
|
29.5
|
|
63.4 %
|
Change in Argentina
operations
|
(0.1)
|
|
NM *
|
|
0.1
|
|
0.4 %
|
|
—
|
|
— %
|
|
—
|
|
— %
|
|
—
|
|
— %
|
Impact of
currency
|
(1.4)
|
|
NM *
|
|
(0.6)
|
|
(2.0) %
|
|
—
|
|
— %
|
|
1.0
|
|
10.6 %
|
|
(1.0)
|
|
(2.1) %
|
Segment Profit -
current year
|
$
10.6
|
|
NM *
|
|
$
29.4
|
|
21.0 %
|
|
$
17.4
|
|
34.9 %
|
|
$
17.6
|
|
85.3 %
|
|
$
75.0
|
|
61.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Segment
Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit - prior
year
|
$
168.2
|
|
|
|
$
119.6
|
|
|
|
$
155.6
|
|
|
|
$
156.7
|
|
|
|
$
600.1
|
|
|
Organic
|
(3.3)
|
|
(2.0) %
|
|
33.1
|
|
27.7 %
|
|
(12.2)
|
|
(7.8) %
|
|
33.4
|
|
21.3 %
|
|
51.0
|
|
8.5 %
|
Change in Russia
operations
|
(0.6)
|
|
(0.4) %
|
|
(0.6)
|
|
(0.5) %
|
|
—
|
|
— %
|
|
—
|
|
— %
|
|
(1.2)
|
|
(0.2) %
|
Change in Argentina
operations
|
(0.1)
|
|
(0.1) %
|
|
0.8
|
|
0.7 %
|
|
(1.7)
|
|
(1.1) %
|
|
(0.4)
|
|
(0.3) %
|
|
(1.4)
|
|
(0.2) %
|
Impact of
currency
|
(15.3)
|
|
(9.0) %
|
|
(9.0)
|
|
(7.6) %
|
|
(2.4)
|
|
(1.6) %
|
|
4.7
|
|
3.1 %
|
|
(22.0)
|
|
(3.7) %
|
Segment Profit -
current year
|
$
148.9
|
|
(11.5) %
|
|
$
143.9
|
|
20.3 %
|
|
$
139.3
|
|
(10.5) %
|
|
$
194.4
|
|
24.1 %
|
|
$
626.5
|
|
4.4 %
|
|
NM * - These percentage
calculations are not meaningful.
|
Energizer Holdings,
Inc.
Supplemental
Schedules - Non-GAAP Reconciliations
For the Quarter and
Twelve Months Ended September 30, 2023
(In millions, except
per share data - Unaudited)
|
|
Gross
Profit
|
Q1'23
|
Q2'23
|
Q3'23
|
Q4'23
|
|
Q1'22
|
Q2'22
|
Q3'22
|
Q4'22
|
|
2023
|
2022
|
Net Sales
|
$765.1
|
$684.1
|
$699.4
|
$811.1
|
|
$846.3
|
$685.4
|
$728.0
|
$790.4
|
|
$2,959.7
|
$3,050.1
|
Reported Cost of
products sold
|
466.8
|
430.8
|
434.3
|
503.8
|
|
534.7
|
447.0
|
444.0
|
504.9
|
|
1,835.7
|
1,930.6
|
Gross
profit
|
$298.3
|
$253.3
|
$265.1
|
$307.3
|
|
$311.6
|
$238.4
|
$284.0
|
$285.5
|
|
$1,124.0
|
$1,119.5
|
Gross
margin
|
39.0 %
|
37.0 %
|
37.9 %
|
37.9 %
|
|
36.8 %
|
34.8 %
|
39.0 %
|
36.1 %
|
|
38.0 %
|
36.7 %
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
related costs
|
0.3
|
5.7
|
6.5
|
17.4
|
|
—
|
—
|
—
|
—
|
|
29.9
|
—
|
Acquisition and
integration costs
|
—
|
—
|
—
|
—
|
|
6.0
|
—
|
—
|
—
|
|
—
|
6.0
|
Exit of Russian
market
|
—
|
—
|
—
|
—
|
|
—
|
0.7
|
—
|
0.6
|
|
—
|
1.3
|
Brazil flood damage,
net of insurance proceeds
|
—
|
—
|
—
|
—
|
|
—
|
—
|
9.9
|
(0.2)
|
|
—
|
9.7
|
Cost of products sold -
adjusted
|
466.5
|
425.1
|
427.8
|
486.4
|
|
528.7
|
446.3
|
434.1
|
504.5
|
|
1,805.8
|
1,913.6
|
Adjusted Gross
profit
|
$298.6
|
$259.0
|
$271.6
|
$324.7
|
|
$317.6
|
$239.1
|
$293.9
|
$285.9
|
|
$1,153.9
|
$1,136.5
|
Adjusted Gross
margin
|
39.0 %
|
37.9 %
|
38.8 %
|
40.0 %
|
|
37.5 %
|
34.9 %
|
40.4 %
|
36.2 %
|
|
39.0 %
|
37.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SG&A
|
Q1'23
|
Q2'23
|
Q3'23
|
Q4'23
|
|
Q1'22
|
Q2'22
|
Q3'22
|
Q4'22
|
|
2023
|
2022
|
Reported
SG&A
|
$120.4
|
$118.3
|
$116.1
|
$134.6
|
|
$122.1
|
$123.4
|
$118.9
|
$120.1
|
|
$489.4
|
$484.5
|
Reported SG&A %
of Net Sales
|
15.7 %
|
17.3 %
|
16.6 %
|
16.6 %
|
|
14.4 %
|
18.0 %
|
16.3 %
|
15.2 %
|
|
16.5 %
|
15.9 %
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
related costs
|
6.3
|
1.8
|
2.8
|
19.1
|
|
—
|
—
|
—
|
0.9
|
|
30.0
|
0.9
|
Acquisition and
integration costs
|
—
|
—
|
—
|
—
|
|
9.4
|
—
|
—
|
—
|
|
—
|
9.4
|
Acquisition earn
out
|
—
|
—
|
—
|
—
|
|
1.1
|
—
|
—
|
—
|
|
—
|
1.1
|
Exit of Russian
Market
|
—
|
|
—
|
—
|
|
—
|
5.8
|
—
|
—
|
|
—
|
5.8
|
SG&A Adjusted -
subtotal
|
$114.1
|
$116.5
|
$113.3
|
$115.5
|
|
$111.6
|
$117.6
|
$118.9
|
$119.2
|
|
$459.4
|
$467.3
|
SG&A Adjusted %
of Net Sales
|
14.9 %
|
17.0 %
|
16.2 %
|
14.2 %
|
|
13.2 %
|
17.2 %
|
16.3 %
|
15.1 %
|
|
15.5 %
|
15.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other items,
net
|
Q1'23
|
Q2'23
|
Q3'23
|
Q4'23
|
|
Q1'22
|
Q2'22
|
Q3'22
|
Q4'22
|
|
2023
|
2022
|
Interest
income
|
$(0.2)
|
$(1.1)
|
$(0.4)
|
$(7.2)
|
|
$(0.2)
|
$(0.3)
|
$(0.2)
|
$(0.3)
|
|
$(8.9)
|
$(1.0)
|
Foreign currency
exchange gain/(loss)
|
(1.0)
|
4.5
|
5.1
|
8.7
|
|
1.3
|
(0.1)
|
2.5
|
4.1
|
|
17.3
|
7.8
|
Pension benefit other
than service costs
|
0.7
|
0.6
|
0.7
|
0.7
|
|
(1.1)
|
(1.1)
|
(1.0)
|
(0.9)
|
|
2.7
|
(4.1)
|
Other
|
(0.9)
|
(3.2)
|
—
|
0.1
|
|
0.2
|
—
|
(0.3)
|
1.7
|
|
(4.0)
|
1.6
|
Other items, net -
Adjusted
|
(1.4)
|
0.8
|
5.4
|
2.3
|
|
0.2
|
(1.5)
|
1.0
|
4.6
|
|
7.1
|
4.3
|
Restructuring and
related costs
|
—
|
—
|
(0.2)
|
—
|
|
—
|
—
|
—
|
—
|
|
(0.2)
|
—
|
Settlement loss on US
pension annuity buy out
|
—
|
—
|
—
|
50.2
|
|
—
|
—
|
—
|
—
|
|
50.2
|
—
|
Exit of Russian
market
|
—
|
—
|
—
|
—
|
|
—
|
7.5
|
—
|
—
|
|
—
|
7.5
|
Gain on termination of
finance lease
|
—
|
—
|
—
|
—
|
|
—
|
—
|
(4.5)
|
—
|
|
—
|
(4.5)
|
Total Other items,
net
|
$(1.4)
|
$0.8
|
$5.2
|
$52.5
|
|
$0.2
|
$6.0
|
$(3.5)
|
$4.6
|
|
$57.1
|
$7.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
related costs
|
Q1'23
|
Q2'23
|
Q3'23
|
Q4'23
|
|
Q1'22
|
Q2'22
|
Q3'22
|
Q4'22
|
|
2023
|
2022
|
Cost of products
sold
|
$0.3
|
$5.7
|
$6.5
|
$17.4
|
|
$—
|
$—
|
$—
|
$—
|
|
$29.9
|
$—
|
SG&A -
Restructuring costs
|
6.3
|
1.8
|
2.6
|
16.0
|
|
—
|
—
|
—
|
0.9
|
|
26.7
|
0.9
|
SG&A - IT
Enablement
|
—
|
—
|
0.2
|
3.1
|
|
—
|
—
|
—
|
—
|
|
3.3
|
—
|
Other items,
net
|
—
|
—
|
(0.2)
|
—
|
|
—
|
—
|
—
|
—
|
|
(0.2)
|
—
|
Total Restructuring
and related costs
|
$6.6
|
$7.5
|
$9.1
|
$36.5
|
|
$—
|
$—
|
$—
|
$0.9
|
|
$59.7
|
$0.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration
|
Q1'23
|
Q2'23
|
Q3'23
|
Q4'23
|
|
Q1'22
|
Q2'22
|
Q3'22
|
Q4'22
|
|
2023
|
2022
|
Cost of products
sold
|
$—
|
$—
|
$—
|
$—
|
|
$6.0
|
$—
|
$—
|
$—
|
|
$—
|
$6.0
|
SG&A
|
—
|
—
|
—
|
—
|
|
9.4
|
—
|
—
|
—
|
|
—
|
9.4
|
Research and
development
|
—
|
—
|
—
|
—
|
|
1.1
|
—
|
—
|
—
|
|
—
|
1.1
|
Acquisition and
integration related items
|
$—
|
$—
|
$—
|
$—
|
|
$16.5
|
$—
|
$—
|
$—
|
|
$—
|
$16.5
|
Energizer Holdings,
Inc.
Supplemental
Schedules - Non-GAAP Reconciliations cont.
For the Quarter and
Twelve Months Ended September 30, 2023
(In millions, except
per share data - Unaudited)
|
|
|
Q1'23
|
|
Q2'23
|
|
Q3'23
|
|
Q4'23
|
|
FY
2023
|
|
Q4'22
|
|
FY2022
|
Net
earnings/(loss)
|
$ 49.0
|
|
$ 40.0
|
|
$ 31.8
|
|
$ 19.7
|
|
$ 140.5
|
|
$
(362.9)
|
|
$
(231.5)
|
Income tax
provision/(benefit)
|
13.3
|
|
10.4
|
|
8.6
|
|
2.9
|
|
35.2
|
|
(112.2)
|
|
(74.0)
|
Earnings/(loss)
before income taxes
|
62.3
|
|
50.4
|
|
40.4
|
|
22.6
|
|
175.7
|
|
(475.1)
|
|
(305.5)
|
Interest
expense
|
42.9
|
|
42.0
|
|
42.2
|
|
41.6
|
|
168.7
|
|
42.0
|
|
158.4
|
(Gain)/loss on
extinguishment of debt
|
(2.9)
|
|
0.9
|
|
0.3
|
|
0.2
|
|
(1.5)
|
|
—
|
|
—
|
Depreciation &
Amortization
|
32.1
|
|
30.4
|
|
30.5
|
|
29.7
|
|
122.7
|
|
32.6
|
|
121.6
|
EBITDA
|
134.4
|
|
123.7
|
|
113.4
|
|
94.1
|
|
465.6
|
|
(400.5)
|
|
(25.5)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
related costs
|
6.6
|
|
7.5
|
|
9.1
|
|
36.5
|
|
59.7
|
|
0.9
|
|
0.9
|
Acquisition and
integration costs
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
16.5
|
Acquisition earn
out
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1.1
|
Settlement loss on US
pension annuity buy out
|
—
|
|
—
|
|
—
|
|
50.2
|
|
50.2
|
|
—
|
|
—
|
Impairment of goodwill
& intangible assets
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
541.9
|
|
541.9
|
Exit of Russian
market
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
0.6
|
|
14.6
|
Gain on finance lease
termination
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(4.5)
|
Brazil flood damage,
net of insurance proceeds
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(0.2)
|
|
9.7
|
Share-based
payments
|
4.6
|
|
8.3
|
|
4.3
|
|
4.6
|
|
21.8
|
|
3.3
|
|
13.2
|
Adjusted
EBITDA
|
$
145.6
|
|
$
139.5
|
|
$
126.8
|
|
$
185.4
|
|
$ 597.3
|
|
$ 146.0
|
|
$ 567.9
|
Free Cash
Flow
|
|
Net cash from operating
activities
|
$
395.2
|
Capital
expenditures
|
(56.8)
|
Proceeds from sale of
assets
|
0.7
|
Free Cash Flow for
the twelve months ended September 30, 2023
|
$
339.1
|
Net
Debt
|
9/30/2023
|
|
9/30/2022
|
Current maturities of
long-term debt
|
$
12.0
|
|
$
12.0
|
Current portion of
finance leases
|
0.3
|
|
0.4
|
Notes
payable
|
8.2
|
|
6.4
|
Long-term
debt
|
3,332.1
|
|
3,499.4
|
Total debt per the
balance sheet
|
$
3,352.6
|
|
$
3,518.2
|
Cash and cash
equivalents
|
223.3
|
|
205.3
|
Net
Debt
|
$
3,129.3
|
|
$
3,312.9
|
Energizer Holdings,
Inc.
Supplemental
Schedules - Non-GAAP Reconciliations cont.
Fiscal 2024
Outlook
(In millions, except
per share data - Unaudited)
|
|
Fiscal 2024 Outlook
Reconciliation - Adjusted earnings and Adjusted diluted net
earnings per common share (EPS)
|
|
|
|
|
|
|
(in millions, except
per share data)
|
Net
earnings
|
|
EPS
|
Fiscal 2024 - GAAP
Outlook
|
$183
|
to
|
$205
|
|
$2.52
|
to
|
$2.83
|
Impacts:
|
|
|
|
|
|
|
|
Restructuring and
related costs
|
42
|
|
34
|
|
0.58
|
|
0.47
|
|
|
|
|
|
|
Fiscal 2024 - Adjusted
Outlook
|
$225
|
to
|
$239
|
|
$3.10
|
to
|
$3.30
|
Fiscal 2024 Outlook
Reconciliation - Adjusted EBITDA
|
(in millions, except
per share data)
|
|
|
|
Net earnings
|
$183
|
to
|
$205
|
Income tax
provision
|
41
|
to
|
71
|
Earnings before income
taxes
|
$224
|
to
|
$276
|
Interest
expense
|
163
|
to
|
156
|
Amortization of
intangible assets
|
60
|
to
|
55
|
Depreciation
expense
|
70
|
to
|
65
|
EBITDA
|
$517
|
to
|
$552
|
|
|
|
|
Adjustments:
|
|
|
|
Restructuring and
related costs
|
55
|
to
|
45
|
Share-based
payments
|
28
|
to
|
23
|
Adjusted
EBITDA
|
$600
|
to
|
$620
|
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SOURCE Energizer Holdings, Inc.