- Net sales in the third quarter of $728.0 million, with organic growth of 3.8%
primarily due to pricing actions.1
- Earnings per share of $0.73
and Adjusted Earnings per share of $0.77, up 4% compared to prior
year.1
- Adjusted EBITDA for the quarter of $145.5 million, versus $144.4 million in the prior
year.1
ST.
LOUIS, Aug. 8, 2022 /PRNewswire/ --
Energizer Holdings, Inc. (NYSE: ENR) today announced
results for the third fiscal quarter ended June 30,
2022.
"We delivered another solid quarter as pricing actions and
consistent operational execution generated strong organic revenue
growth and gross margin improvement," said Mark LaVigne, Chief Executive Officer. "Despite
a continued volatile operating environment, we are seeing the
strength and resiliency of our brands driving benefits across the
business, and the actions we're taking to rebuild margin are
gaining momentum. Our investments in innovation, productivity, and
digital transformation are paying dividends and we continue to
build a solid foundation for future growth."
Top-Line Performance
For the quarter, we had Net sales of $728.0 million compared to $721.8 million in the prior year period.
|
Third
Quarter
|
|
% Chg
|
Net sales -
FY'21
|
$
721.8
|
|
|
Organic
|
27.3
|
|
3.8 %
|
Change in
Russia
|
(7.9)
|
|
(1.1) %
|
Change in
Argentina
|
5.5
|
|
0.8 %
|
Impact of
currency
|
(18.7)
|
|
(2.6) %
|
Net sales -
FY'22
|
$
728.0
|
|
0.9 %
|
|
|
|
1) See Press
Release attachments and supplemental schedules for additional
information, including the GAAP and Non-GAAP
reconciliations.
|
- Organic Net sales increased 3.8% primarily driven by the
following items:
-
- Pricing executed in both battery and auto care drove an organic
increase of approximately 10%; and
- New distribution across both segments, in both North America and International markets,
contributed approximately 1% to organic growth.
- Offsetting these increases were volume declines in both battery
and auto care related to the previously mentioned pricing actions,
the lapping of elevated demand in the prior year and the impact of
inflationary pressures, resulting in a 7.5% decrease to organic
sales.
Gross Margin
Gross margin on a reported basis was 39.0% versus 37.9% in the
prior year. Excluding the current year costs from the flooding of
our Brazilian manufacturing facility and exiting the Russian
market, and the prior year costs related to acquisition and
integration, adjusted gross margin was 40.4%, an improvement of 120
basis points from the prior year.
|
|
Third
Quarter
|
Adjusted gross margin -
FY'21 (1)
|
|
39.2 %
|
Pricing
|
|
5.6 %
|
Product cost
impacts
|
|
(3.9) %
|
Currency impact and
other
|
|
(0.5) %
|
Adjusted gross margin -
FY'22 (1)
|
|
40.4 %
|
The gross margin increase was largely driven by the positive
impact of executed price increases in battery and auto care
partially offset by a continuation of higher operating costs,
including transportation, material and labor, consistent with
ongoing inflationary trends and negative currency
impacts.
Selling, General and Administrative Expense
(SG&A)
SG&A for the third quarter was 16.3% of net sales, or
$118.9 million, compared to 14.8%, or
$106.6 million in the prior year
excluding acquisition and integration costs and acquisition earn
out. The increase was primarily driven by environmental costs
related to a legacy facility, recycling fees, and IT spending
related to our investment in digital
transformation.(1)
Advertising and Promotion Expense (A&P)
A&P was 5.3% of net sales for the third fiscal quarter,
compared to 6.1% in the prior year, or a $5.6 million decline.
Earnings Per Share
and Adjusted EBITDA
|
Third
Quarter
|
(In millions, except
per share data)
|
2022
|
|
2021
|
Net earnings
|
$
52.4
|
|
$
20.8
|
Diluted net earnings
per common share
|
$
0.73
|
|
$
0.24
|
|
|
|
|
Adjusted net
earnings(1)
|
$
55.5
|
|
$
54.6
|
Adjusted diluted net
earnings per common share(1)
|
$
0.77
|
|
$
0.74
|
Adjusted
EBITDA(1)
|
$
145.5
|
|
$
144.4
|
The improvement in Adjusted EBITDA and Adjusted diluted net
earnings per common share for the quarter reflect the positive
impact of price increases from both segments as well as the lower
A&P investment spending. This improvement was partially offset
by higher input costs and higher SG&A. Adjusted diluted net
earnings per common share benefited from lower taxes partially
offset by higher interest expense in the current quarter as
well.
Capital Allocation
Common stock dividend payments in the quarter of approximately
$21.3 million, or $0.30 per common share.
Financial Outlook and Assumptions for Fiscal Year
2022(1)
We have delivered solid year to date results on both the top and
bottom line through pricing actions and consistent operational
execution, which we expect to result in Net Sales, Adjusted EBITDA
and Adjusted earnings per share performance within the ranges of
our initial full year outlook. However, we expect the impact
of a rapidly appreciating US dollar and our exit from the
Russia market to result in
approximately $20 million, or
$0.22 per share, of headwinds in the
second half of the year based on current rates. Inclusive of
these impacts, we are now expecting full year Adjusted EBITDA and
Adjusted earnings per share to be at the lower end of our
previously provided outlooks of $560
million to $590 million and
$3.00 to $3.30, respectively.
Webcast Information
In conjunction with this announcement, the Company will hold an
investor conference call beginning at 10:00
a.m. Eastern Time today. The call will focus on third fiscal
quarter earnings and 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/5PDQwNjwyNz
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, have adversely affected, and in the future could
erode, our profit margins and negatively impact operating
results.
- 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 and in our Form
10-Q filed May 9, 2022.
ENERGIZER HOLDINGS,
INC.
CONSOLIDATED STATEMENT OF EARNINGS
(Condensed)
(In millions, except per share data - Unaudited)
|
|
|
For the Quarter
Ended
June 30,
|
|
For the Nine Months
Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net sales
|
$
728.0
|
|
$
721.8
|
|
$
2,259.7
|
|
$
2,255.5
|
Cost of products sold
(1)
|
444.0
|
|
448.5
|
|
1,425.7
|
|
1,373.8
|
Gross profit
|
284.0
|
|
273.3
|
|
834.0
|
|
881.7
|
Selling, general and
administrative expense (1)
|
118.9
|
|
117.5
|
|
364.4
|
|
365.4
|
Advertising and sales
promotion expense
|
38.5
|
|
44.1
|
|
109.8
|
|
120.8
|
Research and
development expense (1)
|
8.5
|
|
8.2
|
|
25.3
|
|
24.8
|
Amortization of
intangible assets
|
15.4
|
|
15.2
|
|
45.8
|
|
46.0
|
Interest
expense
|
41.1
|
|
38.6
|
|
116.4
|
|
125.0
|
Loss on extinguishment
of debt (2)
|
—
|
|
27.6
|
|
—
|
|
103.3
|
Other items, net
(1)
|
(3.5)
|
|
(1.5)
|
|
2.7
|
|
(0.8)
|
Earnings before income
taxes
|
65.1
|
|
23.6
|
|
169.6
|
|
97.2
|
Income tax
provision
|
12.7
|
|
2.8
|
|
38.2
|
|
19.5
|
Net earnings
|
52.4
|
|
20.8
|
|
131.4
|
|
77.7
|
Mandatory preferred
stock dividends
|
—
|
|
(4.0)
|
|
(4.0)
|
|
(12.1)
|
Net earnings
attributable to common shareholders
|
$
52.4
|
|
$
16.8
|
|
$
127.4
|
|
$
65.6
|
|
|
|
|
|
|
|
|
Basic net earnings per
common share
|
$
0.73
|
|
$
0.25
|
|
$
1.83
|
|
$
0.96
|
Diluted net earnings
per common share (3)
|
$
0.73
|
|
$
0.24
|
|
$
1.82
|
|
$
0.95
|
|
|
|
|
|
|
|
|
Weighted average shares
of common stock - Basic
|
71.3
|
|
68.4
|
|
69.5
|
|
68.4
|
Weighted average shares
of common stock - Diluted (3)
|
71.7
|
|
68.6
|
|
69.9
|
|
68.7
|
|
|
(1)
|
See the attached
Supplemental Schedules - Non-GAAP Reconciliations, which break out
the costs from the flood of our
Brazilian manufacturing facility, costs of 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 ended June 30, 2021 related
to the Company's redemption of the
€650 million Senior Notes due in 2026 in June 2021. The nine months
ended June 30, 2021 also includes 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)
|
In January 2022, the
mandatory convertible preferred shares were converted to
approximately 4.7 million common stock.
For the nine months ended June 30, 2022 and for both the three and
nine months ended June 30, 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
|
June 30,
2022
|
|
September
30,
2021
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
199.5
|
|
$
238.9
|
Trade receivables
|
346.4
|
|
292.9
|
Inventories
|
901.8
|
|
728.3
|
Other current
assets
|
193.3
|
|
179.4
|
Total current
assets
|
$
1,641.0
|
|
$
1,439.5
|
Property, plant and
equipment, net
|
370.5
|
|
382.9
|
Operating lease
assets
|
102.7
|
|
112.3
|
Goodwill
|
1,034.9
|
|
1,053.8
|
Other intangible
assets, net
|
1,837.8
|
|
1,871.3
|
Deferred tax
asset
|
19.7
|
|
21.7
|
Other assets
|
176.0
|
|
126.0
|
Total
assets
|
$
5,182.6
|
|
$
5,007.5
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
Current
liabilities
|
|
|
|
Current maturities of
long-term debt
|
$
12.0
|
|
$
12.0
|
Current portion of
capital leases
|
0.6
|
|
2.3
|
Notes
payable
|
61.4
|
|
105.0
|
Accounts
payable
|
372.8
|
|
454.8
|
Current operating
lease liabilities
|
15.4
|
|
15.5
|
Other current
liabilities
|
311.2
|
|
356.8
|
Total current
liabilities
|
$
773.4
|
|
$
946.4
|
Long-term
debt
|
3,544.6
|
|
3,333.4
|
Operating lease
liabilities
|
92.1
|
|
102.3
|
Deferred tax
liability
|
102.6
|
|
91.3
|
Other
liabilities
|
170.2
|
|
178.4
|
Total
liabilities
|
$
4,682.9
|
|
$
4,651.8
|
Shareholders'
equity
|
|
|
|
Common
stock
|
0.8
|
|
0.7
|
Mandatory convertible
preferred stock
|
—
|
|
—
|
Additional paid-in
capital
|
847.7
|
|
832.0
|
Retained
earnings
|
58.7
|
|
(5.0)
|
Treasury
stock
|
(249.6)
|
|
(241.6)
|
Accumulated other
comprehensive loss
|
(157.9)
|
|
(230.4)
|
Total shareholders'
equity
|
$
499.7
|
|
$
355.7
|
Total liabilities and
shareholders' equity
|
$
5,182.6
|
|
$
5,007.5
|
ENERGIZER HOLDINGS,
INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Condensed)
(In millions - Unaudited)
|
|
|
For the Nine Months
Ended June 30,
|
|
2022
|
|
2021
|
Cash Flow from
Operating Activities
|
|
|
|
Net
earnings
|
$
131.4
|
|
$
77.7
|
Non-cash integration
and restructuring charges
|
3.0
|
|
4.5
|
Depreciation and
amortization
|
89.0
|
|
88.7
|
Deferred income
taxes
|
(0.7)
|
|
2.1
|
Share-based
compensation expense
|
9.9
|
|
13.3
|
Gain on capital lease
termination
|
(4.5)
|
|
—
|
Loss on extinguishment
of debt
|
—
|
|
103.3
|
Non-cash charges of
the Brazilian flood
|
9.2
|
|
—
|
Non-cash charges for
exiting the Russian market
|
13.4
|
|
—
|
Non-cash items
included in income, net
|
12.4
|
|
12.8
|
Other, net
|
0.9
|
|
(3.5)
|
Changes in current
assets and liabilities used in operations
|
(370.2)
|
|
(281.4)
|
Net cash (used by)/from
operating activities
|
(106.2)
|
|
17.5
|
|
|
|
|
Cash Flow from
Investing Activities
|
|
|
|
Capital
expenditures
|
(65.8)
|
|
(42.7)
|
Proceeds from sale of
assets
|
0.5
|
|
—
|
Acquisition of
intangible assets
|
(14.6)
|
|
—
|
Acquisitions, net of
cash acquired and working capital settlements
|
1.0
|
|
(67.2)
|
Net cash used by
investing activities
|
(78.9)
|
|
(109.9)
|
|
|
|
|
Cash Flow from
Financing Activities
|
|
|
|
Cash proceeds from
issuance of debt with original maturities greater than 90
days
|
300.0
|
|
1,982.6
|
Payments on debt with
maturities greater than 90 days
|
(10.6)
|
|
(2,770.2)
|
Net
(decrease)/increase in debt with original maturities of 90 days or
less
|
(43.8)
|
|
106.6
|
Payments to terminate
capital lease obligations
|
(5.1)
|
|
—
|
Premiums paid on
extinguishment of debt
|
—
|
|
(141.1)
|
Debt issuance
costs
|
(7.6)
|
|
(27.6)
|
Payment of contingent
consideration
|
—
|
|
(3.9)
|
Dividends paid on
common stock
|
(64.1)
|
|
(63.8)
|
Dividends paid on
mandatory convertible preferred stock
|
(8.1)
|
|
(12.1)
|
Common stock
purchased
|
—
|
|
(21.3)
|
Taxes paid for
withheld share-based payments
|
(2.3)
|
|
(6.7)
|
Net cash from/(used by)
financing activities
|
158.4
|
|
(957.5)
|
|
|
|
|
Effect of exchange rate
changes on cash
|
(12.7)
|
|
7.8
|
|
|
|
|
Net decrease in cash,
cash equivalents, and restricted cash
|
(39.4)
|
|
(1,042.1)
|
Cash, cash equivalents,
and restricted cash, beginning of period
|
238.9
|
|
1,249.8
|
Cash, cash equivalents,
and restricted cash, end of period
|
$
199.5
|
|
$
207.7
|
ENERGIZER HOLDINGS, INC.
Reconciliation of GAAP and Non-GAAP Measures
For the Quarter and Nine Months Ended June 30, 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 the May 2022 flooding of our
Brazilian manufacturing facility, the costs of exiting the Russian
market, the gain on capital lease termination 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, the gain on capital lease termination, other items, net, the
charges related to acquisition and integration costs, including
restructuring charges, an acquisition earn out, the costs of the
flooding of our manufacturing facility in Brazil 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 the flooding of our manufacturing facility
in Brazil, the costs of exiting
the Russian market, the gain on capital lease termination 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 the flooding of our
manufacturing facility in Brazil,
the costs of exiting the Russian market, the gain on capital lease
termination 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 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.
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, the costs of exiting the Russian market and
the costs of the flooding of our manufacturing facility in
Brazil.
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 the flooding of our manufacturing facility in Brazil, the costs of exiting the Russian
market, the gain on capital lease termination and share-based
payments.
Energizer Holdings, Inc.
Supplemental Schedules - Segment Information and Supplemental
Sales Data
For the Quarter and Nine Months Ended June 30, 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 nine months ended June 30,
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
nine months ended June 30, 2022 and 2021, respectively, are
presented below:
|
Quarters Ended June
30,
|
|
Nine Months Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net
Sales
|
|
|
|
|
|
|
|
Batteries &
Lights
|
$
531.6
|
|
$
512.7
|
|
$
1,788.3
|
|
$
1,799.5
|
Auto Care
|
196.4
|
|
209.1
|
|
471.4
|
|
456.0
|
Total net
sales
|
$
728.0
|
|
$
721.8
|
|
$
2,259.7
|
|
$
2,255.5
|
Segment
Profit
|
|
|
|
|
|
|
|
Batteries &
Lights
|
142.7
|
|
113.9
|
|
406.4
|
|
419.8
|
Auto Care
|
12.9
|
|
31.7
|
|
37.0
|
|
78.9
|
Total segment
profit
|
$
155.6
|
|
$
145.6
|
|
$
443.4
|
|
$
498.7
|
General corporate and other expenses (1)
|
(27.6)
|
|
(21.5)
|
|
(74.9)
|
|
(71.3)
|
Amortization of intangible assets
|
(15.4)
|
|
(15.2)
|
|
(45.8)
|
|
(46.0)
|
Acquisition and integration costs (2)
|
—
|
|
(19.5)
|
|
(16.5)
|
|
(54.6)
|
Acquisition earn out (3)
|
—
|
|
(1.2)
|
|
(1.1)
|
|
(2.3)
|
Loss
on extinguishment of debt
|
—
|
|
(27.6)
|
|
—
|
|
(103.3)
|
Interest expense
|
(41.1)
|
|
(38.6)
|
|
(116.4)
|
|
(125.0)
|
Exit
of Russian market (4)
|
—
|
|
—
|
|
(14.0)
|
|
—
|
Gain
on capital lease termination (5)
|
4.5
|
|
—
|
|
4.5
|
|
—
|
Brazil flood damage (6)
|
(9.9)
|
|
—
|
|
(9.9)
|
|
—
|
Other items, net - Adjusted (7)
|
(1.0)
|
|
1.6
|
|
0.3
|
|
1.0
|
Total earnings
before income taxes
|
$
65.1
|
|
$
23.6
|
|
$
169.6
|
|
$
97.2
|
|
(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 June 30, 2022 and 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 fiscal
2022. See the Supplemental Non-GAAP reconciliation for the
line items
here these charges are recorded in the Consolidated
(Condensed) Statement of Earnings.
|
(5)
|
This represents the
termination of a capital lease in the quarter ended June 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.
|
(6)
|
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. The majority
is related to write off of damaged inventory.
|
(7)
|
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:
|
Quarters Ended June
30,
|
|
Nine Months Ended
June 30,
|
Depreciation and
amortization
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Batteries &
Lights
|
$
12.5
|
|
$
12.5
|
|
$
36.4
|
|
$
36.4
|
Auto Care
|
2.5
|
|
2.3
|
|
6.8
|
|
6.3
|
Total segment
depreciation and amortization
|
$
15.0
|
|
$
14.8
|
|
$
43.2
|
|
$
42.7
|
Amortization of
intangible assets
|
15.4
|
|
15.2
|
|
45.8
|
|
46.0
|
Total depreciation
and amortization
|
$
30.4
|
|
$
30.0
|
|
$
89.0
|
|
$
88.7
|
Energizer Holdings,
Inc.
Supplemental Schedules - GAAP EPS to Adjusted EPS
Reconciliation
For the Quarter and Nine Months Ended June 30, 2022
(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 Quarters
Ended
June 30,
|
|
For the Nine Months
Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net earnings
attributable to common shareholders
|
$
52.4
|
|
$
16.8
|
|
$
127.4
|
|
$
65.6
|
Mandatory preferred
stock dividends
|
—
|
|
(4.0)
|
|
(4.0)
|
|
(12.1)
|
Net earnings
|
52.4
|
|
20.8
|
|
131.4
|
|
77.7
|
Pre-tax
adjustments
|
|
|
|
|
|
|
|
Acquisition and
integration (1)
|
—
|
|
19.5
|
|
16.5
|
|
54.6
|
Acquisition earn
out
|
—
|
|
1.2
|
|
1.1
|
|
2.3
|
Loss on extinguishment
of debt
|
—
|
|
27.6
|
|
—
|
|
103.3
|
Exit of Russian market
(1)
|
—
|
|
—
|
|
14.0
|
|
—
|
Gain on capital lease
termination (1)
|
(4.5)
|
|
—
|
|
(4.5)
|
|
—
|
Brazil flood damage
(1)
|
9.9
|
|
—
|
|
9.9
|
|
—
|
Total adjustments,
pre-tax
|
$
5.4
|
|
$
48.3
|
|
$
37.0
|
|
$
160.2
|
After tax
adjustments
|
|
|
|
|
|
|
|
Acquisition and
integration
|
—
|
|
14.8
|
|
13.0
|
|
42.1
|
Acquisition earn
out
|
—
|
|
0.9
|
|
0.8
|
|
1.7
|
Loss on extinguishment
of debt
|
—
|
|
18.1
|
|
—
|
|
76.1
|
Exit of Russian
market
|
—
|
|
—
|
|
14.3
|
|
—
|
Gain on capital lease
termination
|
(3.4)
|
|
—
|
|
(3.4)
|
|
—
|
Brazil flood
damage
|
6.5
|
|
—
|
|
6.5
|
|
—
|
Total adjustments,
after tax
|
$
3.1
|
|
$
33.8
|
|
$
31.2
|
|
$
119.9
|
Adjusted net earnings
(2)
|
$
55.5
|
|
$
54.6
|
|
$
162.6
|
|
$
197.6
|
Mandatory preferred
stock dividends
|
—
|
|
(4.0)
|
|
(4.0)
|
|
(12.1)
|
Adjusted net earnings
attributable to common shareholders
|
$
55.5
|
|
$
50.6
|
|
$
158.6
|
|
$
185.5
|
|
|
|
|
|
|
|
|
Diluted net earnings
per common share
|
$
0.73
|
|
$
0.24
|
|
$
1.82
|
|
$
0.95
|
Adjustments
|
|
|
|
|
|
|
|
Acquisition and
integration
|
—
|
|
0.22
|
|
0.18
|
|
0.57
|
Acquisition earn
out
|
—
|
|
0.01
|
|
0.01
|
|
0.02
|
Loss on extinguishment
of debt
|
—
|
|
0.27
|
|
—
|
|
1.04
|
Exit of Russian
market
|
—
|
|
—
|
|
0.20
|
|
—
|
Gain on capital lease
termination
|
(0.05)
|
|
—
|
|
(0.05)
|
|
—
|
Brazil flood
damage
|
0.09
|
|
—
|
|
0.09
|
|
—
|
Impact for diluted
share calculation (3)
|
—
|
|
—
|
|
0.01
|
|
0.11
|
Adjusted diluted net
earnings per diluted common share (3)
|
$
0.77
|
|
$
0.74
|
|
$
2.26
|
|
$
2.69
|
Weighted average shares
of common stock - Diluted
|
71.7
|
|
68.6
|
|
69.9
|
|
68.7
|
Adjusted Weighted
average shares of common stock - Diluted (3)
|
71.7
|
|
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 June 30, 2022 and 2021 was 21.3% and 24.1%,
respectively, and for the nine months ended June 30, 2022 and 2021
was 21.3% and 23.2%, respectively, as calculated utilizing the
statutory rate for where the costs were incurred.
|
|
|
(3)
|
During the nine months
ended June 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.
|
For the quarter ended June 30,
2021, the conversion of the mandatory convertible preferred
stock is not dilutive and the mandatory preferred stock dividends
are included in the adjusted dilution calculation. For the nine
months ended June 30, 2021, the
Adjusted diluted net earnings per common share assumes the
conversion of the mandatory convertible preferred stock to 4.7
million shares of common stock, and excludes the mandatory
preferred stock dividends from net earnings as that is more
dilutive to the calculation.
Energizer Holdings,
Inc.
Supplemental
Schedules - Segment Sales
For the Quarter and
Nine Months Ended June 30, 2022
(In millions -
Unaudited)
|
|
Net
sales
|
Q1'22
|
|
% Chg
|
|
Q2'22
|
|
% Chg
|
|
Q3'22
|
|
% Chg
|
|
Nine
Months
'22
|
|
% Chg
|
Batteries &
Lights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales - prior
year
|
$ 743.9
|
|
|
|
$ 542.9
|
|
|
|
$ 512.7
|
|
|
|
$ 1,799.5
|
|
|
Organic
|
(1.7)
|
|
(0.2) %
|
|
(16.6)
|
|
(3.1) %
|
|
38.0
|
|
7.4 %
|
|
19.7
|
|
1.1 %
|
Change in
Russia
|
—
|
|
— %
|
|
(2.3)
|
|
(0.4) %
|
|
(7.8)
|
|
(1.5) %
|
|
(10.1)
|
|
(0.6) %
|
Change in
Argentina
|
2.4
|
|
0.3 %
|
|
1.4
|
|
0.3 %
|
|
5.5
|
|
1.1 %
|
|
9.3
|
|
0.5 %
|
Impact of
currency
|
(4.4)
|
|
(0.6) %
|
|
(8.9)
|
|
(1.7) %
|
|
(16.8)
|
|
(3.3) %
|
|
(30.1)
|
|
(1.6) %
|
Net sales - current
year
|
$ 740.2
|
|
(0.5) %
|
|
$ 516.5
|
|
(4.9) %
|
|
$ 531.6
|
|
3.7 %
|
|
$
1,788.3
|
|
(0.6) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Auto
Care
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales - prior
year
|
$ 104.7
|
|
|
|
$ 142.2
|
|
|
|
$ 209.1
|
|
|
|
$ 456.0
|
|
|
Organic
|
1.4
|
|
1.3 %
|
|
27.6
|
|
19.4 %
|
|
(10.7)
|
|
(5.1) %
|
|
18.3
|
|
4.0 %
|
Change in
Russia
|
—
|
|
— %
|
|
—
|
|
— %
|
|
(0.1)
|
|
— %
|
|
(0.1)
|
|
— %
|
Impact of
currency
|
—
|
|
— %
|
|
(0.9)
|
|
(0.6) %
|
|
(1.9)
|
|
(1.0) %
|
|
(2.8)
|
|
(0.6) %
|
Net sales - current
year
|
$ 106.1
|
|
1.3 %
|
|
$ 168.9
|
|
18.8 %
|
|
$ 196.4
|
|
(6.1) %
|
|
$ 471.4
|
|
3.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales - prior
year
|
$ 848.6
|
|
|
|
$ 685.1
|
|
|
|
$ 721.8
|
|
|
|
$ 2,255.5
|
|
|
Organic
|
(0.3)
|
|
— %
|
|
11.0
|
|
1.6 %
|
|
27.3
|
|
3.8 %
|
|
38.0
|
|
1.7 %
|
Change in
Russia
|
—
|
|
— %
|
|
(2.3)
|
|
(0.3) %
|
|
(7.9)
|
|
(1.1) %
|
|
(10.2)
|
|
(0.5) %
|
Change in
Argentina
|
2.4
|
|
0.3 %
|
|
1.4
|
|
0.2 %
|
|
5.5
|
|
0.8 %
|
|
9.3
|
|
0.4 %
|
Impact of
currency
|
(4.4)
|
|
(0.6) %
|
|
(9.8)
|
|
(1.5) %
|
|
(18.7)
|
|
(2.6) %
|
|
(32.9)
|
|
(1.4) %
|
Net sales - current
year
|
$ 846.3
|
|
(0.3) %
|
|
$ 685.4
|
|
— %
|
|
$ 728.0
|
|
0.9 %
|
|
$
2,259.7
|
|
0.2 %
|
Energizer Holdings,
Inc.
Supplemental
Schedules - Segment Profit
For the Quarter and
Nine Months Ended June 30, 2022
(In millions -
Unaudited)
|
|
Segment
profit
|
Q1'22
|
|
% Chg
|
|
Q2'22
|
|
% Chg
|
|
Q3'22
|
|
% Chg
|
|
Nine
Months
'22
|
|
% Chg
|
Batteries &
Lights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit - prior
year
|
$
180.5
|
|
|
|
$
125.4
|
|
|
|
$
113.9
|
|
|
|
$
419.8
|
|
|
Organic
|
(15.9)
|
|
(8.8) %
|
|
(26.8)
|
|
(21.4) %
|
|
35.7
|
|
31.3 %
|
|
(7.0)
|
|
(1.7) %
|
Change in
Russia
|
—
|
|
— %
|
|
(0.5)
|
|
(0.4) %
|
|
(1.8)
|
|
(1.6) %
|
|
(2.3)
|
|
(0.5) %
|
Change in
Argentina
|
3.0
|
|
1.7 %
|
|
1.1
|
|
0.9 %
|
|
3.2
|
|
2.8 %
|
|
7.3
|
|
1.7 %
|
Impact of
currency
|
0.8
|
|
0.4 %
|
|
(3.9)
|
|
(3.1) %
|
|
(8.3)
|
|
(7.2) %
|
|
(11.4)
|
|
(2.7) %
|
Segment profit -
current year
|
$
168.4
|
|
(6.7) %
|
|
$
95.3
|
|
(24.0) %
|
|
$
142.7
|
|
25.3 %
|
|
$
406.4
|
|
(3.2) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Auto
Care
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit - prior
year
|
$ 18.3
|
|
|
|
$ 28.9
|
|
|
|
$ 31.7
|
|
|
|
$ 78.9
|
|
|
Organic
|
(18.4)
|
|
(100.5) %
|
|
(4.0)
|
|
(13.8) %
|
|
(17.5)
|
|
(55.2) %
|
|
(39.9)
|
|
(50.6) %
|
Change in
Russia
|
—
|
|
— %
|
|
—
|
|
— %
|
|
—
|
|
— %
|
|
—
|
|
— %
|
Impact of
currency
|
(0.1)
|
|
(0.6) %
|
|
(0.6)
|
|
(2.1) %
|
|
(1.3)
|
|
(4.1) %
|
|
(2.0)
|
|
(2.5) %
|
Segment profit -
current year
|
$
(0.2)
|
|
(101.1) %
|
|
$
24.3
|
|
(15.9) %
|
|
$
12.9
|
|
(59.3) %
|
|
$
37.0
|
|
(53.1) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Segment
Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit - prior
year
|
$
198.8
|
|
|
|
$
154.3
|
|
|
|
$
145.6
|
|
|
|
$
498.7
|
|
|
Organic
|
(34.3)
|
|
(17.3) %
|
|
(30.8)
|
|
(20.0) %
|
|
18.2
|
|
12.5 %
|
|
(46.9)
|
|
(9.4) %
|
Change in
Russia
|
—
|
|
— %
|
|
(0.5)
|
|
(0.3) %
|
|
(1.8)
|
|
(1.2) %
|
|
(2.3)
|
|
(0.5) %
|
Change in
Argentina
|
3.0
|
|
1.5 %
|
|
1.1
|
|
0.7 %
|
|
3.2
|
|
2.2 %
|
|
7.3
|
|
1.5 %
|
Impact of
currency
|
0.7
|
|
0.4 %
|
|
(4.5)
|
|
(2.9) %
|
|
(9.6)
|
|
(6.6) %
|
|
(13.4)
|
|
(2.7) %
|
Segment profit -
current year
|
$
168.2
|
|
(15.4) %
|
|
$
119.6
|
|
(22.5) %
|
|
$
155.6
|
|
6.9 %
|
|
$
443.4
|
|
(11.1) %
|
Energizer Holdings,
Inc.
Supplemental
Schedules - Non-GAAP Reconciliations
For the Quarter and
Nine Months Ended June 30, 2022
(In millions -
Unaudited)
|
|
Gross
profit
|
Q1'22
|
Q2'22
|
Q3'22
|
|
Q1'21
|
Q2'21
|
Q3'21
|
|
Q3'22
YTD
|
|
Q3'21
YTD
|
Net sales
|
$846.3
|
$685.4
|
$728.0
|
|
$848.6
|
$685.1
|
$721.8
|
|
$
2,259.7
|
|
$
2,255.5
|
Cost of products sold -
adjusted
|
528.7
|
446.3
|
434.1
|
|
503.0
|
407.3
|
438.9
|
|
1,409.1
|
|
1,349.2
|
Adjusted Gross
profit
|
$317.6
|
$239.1
|
$293.9
|
|
$345.6
|
$277.8
|
$282.9
|
|
$
850.6
|
|
$
906.3
|
Adjusted Gross
margin
|
37.5 %
|
34.9 %
|
40.4 %
|
|
40.7 %
|
40.5 %
|
39.2 %
|
|
37.6 %
|
|
40.2 %
|
Acquisition and
integration costs
|
6.0
|
—
|
—
|
|
7.7
|
7.3
|
9.6
|
|
6.0
|
|
24.6
|
Exit of Russian
market
|
—
|
0.7
|
—
|
|
—
|
—
|
—
|
|
0.7
|
|
—
|
Brazil flood
damage
|
—
|
—
|
9.9
|
|
—
|
—
|
—
|
|
9.9
|
|
—
|
Reported Cost of
products sold
|
534.7
|
447.0
|
444.0
|
|
510.7
|
414.6
|
448.5
|
|
1,425.7
|
|
1,373.8
|
Gross
profit
|
$311.6
|
$238.4
|
$284.0
|
|
$337.9
|
$270.5
|
$273.3
|
|
$
834.0
|
|
$
881.7
|
Gross
margin
|
36.8 %
|
34.8 %
|
39.0 %
|
|
39.8 %
|
39.5 %
|
37.9 %
|
|
36.9 %
|
|
39.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
SG&A
|
Q1'22
|
Q2'22
|
Q3'22
|
|
Q1'21
|
Q2'21
|
Q3'21
|
|
Q3'22
YTD
|
|
Q3'21
YTD
|
Segment
SG&A
|
$89.9
|
$92.0
|
$91.3
|
|
$89.7
|
$88.3
|
$85.1
|
|
$
273.2
|
|
$
263.1
|
Corporate
SG&A
|
21.7
|
25.6
|
27.6
|
|
24.0
|
25.8
|
21.5
|
|
74.9
|
|
71.3
|
SG&A Adjusted -
subtotal
|
$111.6
|
$117.6
|
$118.9
|
|
$113.7
|
$114.1
|
$106.6
|
|
$
348.1
|
|
$
334.4
|
SG&A Adjusted %
of Net sales
|
13.2 %
|
17.2 %
|
16.3 %
|
|
13.4 %
|
16.7 %
|
14.8 %
|
|
15.4 %
|
|
14.8 %
|
Acquisition and
integration costs
|
9.4
|
—
|
—
|
|
10.4
|
8.6
|
9.7
|
|
9.4
|
|
28.7
|
Acquisition earn
out
|
1.1
|
—
|
—
|
|
—
|
1.1
|
1.2
|
|
1.1
|
|
2.3
|
Exit of Russian
market
|
—
|
5.8
|
—
|
|
—
|
—
|
—
|
|
5.8
|
|
—
|
Reported
SG&A
|
$122.1
|
$123.4
|
$118.9
|
|
$124.1
|
$123.8
|
$117.5
|
|
$
364.4
|
|
$
365.4
|
Reported SG&A %
of Net sales
|
14.4 %
|
18.0 %
|
16.3 %
|
|
14.6 %
|
18.1 %
|
16.3 %
|
|
16.1 %
|
|
16.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Other items,
net
|
Q1'22
|
Q2'22
|
Q3'22
|
|
Q1'21
|
Q2'21
|
Q3'21
|
|
Q3'22
YTD
|
|
Q3'21
YTD
|
Interest
income
|
$
(0.2)
|
$
(0.3)
|
$
(0.2)
|
|
$
(0.1)
|
$
(0.2)
|
$
(0.2)
|
|
$
(0.7)
|
|
$
(0.5)
|
Foreign currency
exchange
loss/(gain)
|
1.3
|
(0.1)
|
2.5
|
|
1.3
|
0.5
|
(0.9)
|
|
3.7
|
|
0.9
|
Pension benefit other
than service
costs
|
(1.1)
|
(1.1)
|
(1.0)
|
|
(0.5)
|
(0.5)
|
(0.6)
|
|
(3.2)
|
|
(1.6)
|
Other
|
0.2
|
—
|
(0.3)
|
|
—
|
0.1
|
0.1
|
|
(0.1)
|
|
0.2
|
Other items, net -
Adjusted
|
$ 0.2
|
$
(1.5)
|
$ 1.0
|
|
$ 0.7
|
$
(0.1)
|
$
(1.6)
|
|
$
(0.3)
|
|
$
(1.0)
|
Exit of Russian
market
|
—
|
7.5
|
—
|
|
—
|
—
|
—
|
|
7.5
|
|
—
|
Gain on capital lease
termination
|
—
|
—
|
(4.5)
|
|
—
|
—
|
—
|
|
(4.5)
|
|
—
|
Other
|
—
|
—
|
—
|
|
0.1
|
—
|
0.1
|
|
—
|
|
0.2
|
Total Other items,
net
|
$ 0.2
|
$ 6.0
|
$
(3.5)
|
|
$ 0.8
|
$
(0.1)
|
$
(1.5)
|
|
$
2.7
|
|
$
(0.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration
|
Q1'22
|
Q2'22
|
Q3'22
|
|
Q1'21
|
Q2'21
|
Q3'21
|
|
Q3'22
YTD
|
|
Q3'21
YTD
|
Cost of products
sold
|
$ 6.0
|
$ —
|
$ —
|
|
$ 7.7
|
$ 7.3
|
$ 9.6
|
|
$
6.0
|
|
$
24.6
|
SG&A
|
9.4
|
—
|
—
|
|
10.4
|
8.6
|
9.7
|
|
9.4
|
|
28.7
|
Research and
development
|
1.1
|
—
|
—
|
|
0.1
|
0.9
|
0.1
|
|
1.1
|
|
1.1
|
Other items,
net
|
—
|
—
|
—
|
|
0.1
|
—
|
0.1
|
|
—
|
|
0.2
|
Acquisition and
integration
related items
|
$
16.5
|
$ —
|
$ —
|
|
$
18.3
|
$
16.8
|
$
19.5
|
|
$
16.5
|
|
$
54.6
|
Energizer Holdings,
Inc.
Supplemental
Schedules - Non-GAAP Reconciliations cont.
For the Quarter and
Nine Months Ended June 30, 2022
(In millions -
Unaudited)
|
|
|
Q3'22
|
|
Q2'22
|
|
Q1'22
|
|
Q4'21
|
|
LTM
06/30/22
(1)
|
|
Q3'21
|
Net earnings
|
$ 52.4
|
|
$ 19.0
|
|
$ 60.0
|
|
$ 83.2
|
|
$
214.6
|
|
$ 20.8
|
Income tax
provision
|
12.7
|
|
9.0
|
|
16.5
|
|
(26.2)
|
|
12.0
|
|
2.8
|
Earnings before
income taxes
|
65.1
|
|
28.0
|
|
76.5
|
|
57.0
|
|
226.6
|
|
23.6
|
Interest
expense
|
41.1
|
|
38.3
|
|
37.0
|
|
36.8
|
|
153.2
|
|
38.6
|
Loss on extinguishment
of debt
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
27.6
|
Depreciation &
Amortization
|
30.4
|
|
29.2
|
|
29.4
|
|
29.8
|
|
118.8
|
|
30.0
|
EBITDA
|
$
136.6
|
|
$ 95.5
|
|
$
142.9
|
|
$
123.6
|
|
$
498.6
|
|
$
119.8
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration costs
|
—
|
|
—
|
|
16.5
|
|
14.3
|
|
30.8
|
|
19.5
|
Exit of Russian
market
|
—
|
|
14.0
|
|
—
|
|
—
|
|
14.0
|
|
—
|
Gain on capital
lease termination
|
(4.5)
|
|
—
|
|
—
|
|
—
|
|
(4.5)
|
|
—
|
Brazil flood
damage
|
9.9
|
|
—
|
|
—
|
|
—
|
|
9.9
|
|
—
|
Acquisition earn
out
|
—
|
|
—
|
|
1.1
|
|
1.1
|
|
2.2
|
|
1.2
|
Share-based
payments
|
3.5
|
|
5.1
|
|
1.3
|
|
(3.1)
|
|
6.8
|
|
3.9
|
Adjusted
EBITDA
|
$
145.5
|
|
$
114.6
|
|
$
161.8
|
|
$
135.9
|
|
$
557.8
|
|
$
144.4
|
(1) LTM defined
as the latest 12 months for the period ending June 30,
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
|
$184
|
to
|
$207
|
|
$2.57
|
to
|
$2.87
|
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
|
Gain on capital lease
termination
|
(4)
|
|
(4)
|
|
(0.05)
|
|
(0.05)
|
Brazil flood
damage
|
7
|
|
7
|
|
0.09
|
|
0.09
|
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
|
$184
|
to
|
$207
|
Income tax
provision
|
29
|
to
|
56
|
Earnings before income
taxes
|
$213
|
to
|
$263
|
Interest
expense
|
160
|
to
|
155
|
Amortization
|
65
|
to
|
60
|
Depreciation
|
65
|
to
|
60
|
EBITDA
|
$503
|
to
|
$538
|
|
|
|
|
Adjustments:
|
|
|
|
Integration
costs
|
17
|
to
|
17
|
Acquisition earn
out
|
1
|
to
|
1
|
Exit of Russian
operation
|
14
|
to
|
14
|
Gain on capital
lease termination
|
(5)
|
to
|
(5)
|
Brazil flood
damage
|
10
|
to
|
10
|
Share-based
payments
|
20
|
to
|
15
|
Adjusted
EBITDA
|
$560
|
to
|
$590
|
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SOURCE Energizer Holdings, Inc.