Prestige sumer Healthcare (PBH) - 2025 Q3 - Quarterly Report

Revenue Performance - Total revenues for the three months ended December 31, 2024 were $290.3 million, an increase of$ 7.6 million, or 2.7%, compared to the same period in 2023[94]. - Total revenues for the nine months ended December 31, 2024 were $841.2 million, a decrease of$ 7.1 million, or 0.8%, compared to the same period in 2023[110]. - North American OTC Healthcare segment revenues increased by $2.4 million, or 1.0%, primarily due to growth in the Gastrointestinal and Dermatologicals categories[95]. - North American OTC Healthcare segment revenues decreased by$ 16.1 million, or 2.2%, primarily due to declines in Cough & Cold, Women's Health, and Oral Care categories[112]. - International OTC Healthcare segment revenues increased by $5.2 million, or 11.3%, mainly driven by sales growth in the Gastrointestinal category[96]. - International OTC Healthcare segment revenues increased by$ 8.9 million, or 7.4%, mainly driven by growth in Gastrointestinal and Dermatologicals categories[113]. Profitability Metrics - Gross profit for the three months ended December 31, 2024 increased by $3.1 million, or 2.0%, but gross profit margin decreased to 55.5% from 55.9% due to increased supply chain costs[98]. - Gross profit for the nine months ended December 31, 2024 decreased by$ 8.2 million, or 1.7%, with gross profit margin declining to 55.2% from 55.7%[114]. - Contribution margin for the North American OTC Healthcare segment increased by $3.3 million, or 3.4%, with a margin of 41.8%, up from 40.8% in the prior year[103]. - Contribution margin for the North American OTC Healthcare segment decreased by$ 12.8 million, or 4.2%, to 40.8%[120]. - Contribution margin for the International OTC Healthcare segment increased by $1.3 million, or 6.0%, but margin decreased to 45.2% from 47.5% due to higher advertising and marketing expenses[104]. Expenses and Costs - General and administrative expenses were$ 26.2 million for the three months ended December 31, 2024, slightly up from $26.0 million in the same period of 2023[105]. - Depreciation and amortization expenses decreased to$ 5.0 million from $5.6 million, primarily due to certain intangible assets being fully depreciated[106]. - Interest expense, net decreased to$ 11.5 million from $16.6 million, with average indebtedness down to$ 1.0 billion from $1.3 billion[107]. - Interest expense, net decreased to$ 36.9 million for the nine months ended December 31, 2024, down from $51.9 million in the same period of 2023[124]. Cash Flow and Investments - Cash provided by operating activities was$ 189.7 million for the nine months ended December 31, 2024, an increase of $7.6 million compared to$ 182.0 million in 2023[128]. - Net cash used in investing activities was $14.0 million for the nine months ended December 31, 2024, compared to$ 5.1 million in 2023, primarily due to the acquisition of Hydralyte intellectual property[129]. - As of December 31, 2024, the company had cash and cash equivalents of $50.9 million, an increase of$ 4.4 million from March 31, 2024[127]. Debt and Compliance - The company repaid the balance of its 2012 Term B-5 Loans during the three months ended December 31, 2024[132]. - The company has a total debt maturity of $1,000 million, with$ 400 million maturing in 2028 and $600 million in 2031[133]. - The company must maintain a fixed charge ratio greater than 1.0 to 1.0, and it was in compliance with this requirement as of December 31, 2024[134]. - The company anticipates remaining in compliance with financial and restrictive covenants during the next twelve months[134]. Tax and Currency Exposure - The effective tax rate for the nine months ended December 31, 2024 was 21.8%, down from 23.4% in the same period of 2023[125]. - Approximately 18.2% of gross revenues for the three months ended December 31, 2024, were denominated in currencies other than the U.S. Dollar, compared to 17.0% for the same period in 2023[146]. - A hypothetical 10.0% adverse change in foreign currency exchange rates would have a pre-tax income impact of approximately$ 3.9 million for the three months ended December 31, 2024[147]. - The company is exposed to foreign currency exchange rate risks primarily with respect to the Canadian and Australian Dollars[146]. Accounting Policies - The company reported no material changes to its critical accounting policies during the nine months ended December 31, 2024[136]. - The company’s 2012 ABL Revolver had a zero balance at December 31, 2024, meaning none of its debt carried a variable rate of interest[145].