- Achieved fiscal 2022 Net Sales, Adjusted Earnings Per Share
and Adjusted EBITDA in line with our Outlook.1
- Net Sales for the fourth quarter up 3.2% to prior year,
driven by organic growth of 7.4%, primarily due to pricing
actions.1
- Free cash flow in the fourth quarter at 12% of Net Sales and
net debt decreased by over $100
million.1
- Company expects to deliver low single digit organic revenue
growth, Adjusted EBITDA in the range of $585 to $615
million and Adjusted earnings per share in the range of
$3.00 to $3.30 for fiscal 2023.1
- Announces Project Momentum, a profit recovery program, with
targeted annualized savings of $80 to
$100 million over the next two fiscal
years.
ST.
LOUIS, Nov. 15, 2022 /PRNewswire/ -- Energizer
Holdings, Inc. (NYSE: ENR) today announced results for the
fourth fiscal quarter and full fiscal year, which ended
September 30, 2022.
"We finished the year strong, delivering full year net sales,
adjusted earnings per share and adjusted EBITDA in line with our
outlook," said Mark LaVigne, Chief
Executive Officer. "Despite a volatile operating environment and
significant headwinds, we achieved our seventh consecutive year of
net sales growth, driven by strong organic growth across both of
our operating segments. We generated $95
million in free cash flow in the fourth quarter, paid down
debt and reduced net leverage by 0.3X."
"We are making necessary adjustments to advance our strategy and
position the business for long term success in a dynamic
environment. As such, we are launching a profit recovery program,
Project Momentum, which accelerates our efforts to restore margins,
enhance free cash flow and strengthen the balance sheet. The
benefits of Project Momentum are expected to be realized over a two
year period and begin to restore both gross margin and earnings
growth in fiscal 2023. I am confident the program will position the
business to drive value creation for our key stakeholders –
customers, consumers and shareholders alike."
Top-Line Performance
Net sales were $790.4 million for
the fourth fiscal quarter compared to $766.0
million in the prior year period and $3,050.1 million for the fiscal year compared to
$3,021.5 million for the prior fiscal
year.
|
|
Fourth
Quarter
|
|
% Chg
|
|
Full Fiscal
Year
|
|
% Chg
|
Net Sales -
FY'21
|
|
$
766.0
|
|
|
|
$ 3,021.5
|
|
|
Organic
|
|
56.4
|
|
7.4 %
|
|
94.4
|
|
3.1 %
|
Change in
Russia
|
|
(9.1)
|
|
(1.2) %
|
|
(19.3)
|
|
(0.6) %
|
Change in Argentina
operations
|
|
2.6
|
|
0.3 %
|
|
11.9
|
|
0.4 %
|
Impact of
currency
|
|
(25.5)
|
|
(3.3) %
|
|
(58.4)
|
|
(2.0) %
|
Net Sales -
FY'22
|
|
$
790.4
|
|
3.2 %
|
|
$ 3,050.1
|
|
0.9 %
|
|
|
|
|
|
|
|
|
|
1
|
See Press Release
attachments and supplemental schedules for additional information,
including the GAAP to Non-GAAP reconciliations.
|
For the fiscal quarter, organic net sales increased 7.4% due to
the following items: 1
- Pricing executed in both battery and auto care drove an organic
increase of approximately 13.3%;
- Partially offsetting increased pricing were volume declines in
both battery and auto care related to those pricing actions, the
lapping of elevated demand in the prior year and the impact of
inflationary pressures on consumer demand, resulting in a 5.9%
decrease to organic sales.
For the fiscal year, organic net sales increased 3.1% due to the
following items: 1
- Pricing executed in both battery and auto care drove an organic
increase of approximately 7.6%; and
- New distribution globally across both battery and auto care
contributed approximately 0.8% to organic growth.
- Offsetting these increases was a net volume decrease of
approximately 5.3% as a result of lapping the elevated battery
demand in the prior year and declines in both battery and auto care
related to the previously mentioned pricing actions.
Gross Margin
Gross margin percentage on a reported basis for the fourth
fiscal quarter was 36.1%, versus 36.5% in the prior year quarter,
and was 36.7% for fiscal 2022, versus 38.4% in the prior year.
Excluding the current year costs from the flooding of our Brazilian
manufacturing facility and exiting the Russian market and the
acquisition and integration costs in both years, the Gross margin
was 36.2% for the fourth fiscal quarter, down 150 basis points from
the prior year quarter, and was 37.3% for the fiscal year, down 230
basis points from prior year.1
|
|
Fourth
Quarter
|
|
Full Fiscal
Year
|
Adjusted Gross Margin -
FY'21 1
|
|
37.7 %
|
|
39.6 %
|
Pricing
|
|
7.3 %
|
|
4.3 %
|
Product input
costs
|
|
(7.8) %
|
|
(5.8) %
|
Synergy
realization
|
|
— %
|
|
0.2 %
|
Net reduction of FY20
COVID-19 cost impact
|
|
— %
|
|
0.4 %
|
Currency impact and
other
|
|
(1.0) %
|
|
(1.4) %
|
Adjusted Gross Margin -
FY'22 1
|
|
36.2 %
|
|
37.3 %
|
The Gross margin decrease for the quarter and fiscal year was
driven by higher operating costs, including transportation,
material and labor costs, consistent with ongoing inflationary
trends. The quarter was further impacted by operating
inefficiencies related to reduced production volumes as we lowered
overall inventory levels on hand. Partially offsetting these margin
impacts was the positive impact of executed price increases in
battery and auto care.
Additionally, the full year was positively impacted by the
elimination of prior year COVID costs and synergies of
approximately $6 million.
Selling, General and
Administrative Expense (SG&A)
SG&A for the fourth fiscal quarter, excluding restructuring
costs, was 15.1% of net sales, or $119.2
million, as compared to 14.3% of net sales, or $109.4 million, in the prior year excluding
acquisition and integration costs and acquisition earn out. The
increase was primarily driven by increased recycling fees, IT
spending related to our investment in digital transformation and an
increase in compensation costs year over
year.1
SG&A for fiscal 2022, excluding restructuring costs,
acquisition and integration costs, acquisition earn out and the
exit of the Russian market was $467.3
million, or 15.3% of net sales, as compared to $443.8 million, or 14.7% of net sales, in the
prior year when excluding acquisition and integration costs and the
acquisition earn out. The increase was primarily driven by
increased environmental costs related to a legacy facility that had
been sold by the Company, recycling fees, travel and higher IT
spending related to our investment in digital
transformation.1
Advertising and Promotion Expense
(A&P)
A&P was 3.5% of net sales for the fourth fiscal quarter and
4.5% of net sales for fiscal 2022. A&P spending in the prior
year was 5.4% for both the fourth fiscal quarter and for fiscal
2021. For the quarter, this was a decrease of 190 basis points, or
$14.0 million and for fiscal
2022 this was a decrease of 90 basis points or $25.0 million.
Earnings Per Share
and Adjusted EBITDA
|
|
Fourth
Quarter
|
|
Full Fiscal
Year
|
(In millions, except
per share data)
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net
(loss)/earnings
|
|
$
(362.9)
|
|
$ 83.2
|
|
$
(231.5)
|
|
$
160.9
|
Diluted net
(loss)/earnings per common share
|
|
$ (5.09)
|
|
$ 1.14
|
|
$ (3.37)
|
|
$ 2.11
|
|
|
|
|
|
|
|
|
|
Adjusted net
earnings1
|
|
$ 58.5
|
|
$ 57.8
|
|
$
221.1
|
|
$
255.4
|
Adjusted diluted net
earnings per common share1
|
|
$ 0.82
|
|
$ 0.79
|
|
$ 3.08
|
|
$ 3.48
|
Adjusted
EBITDA1
|
|
$
146.0
|
|
$
135.9
|
|
$
567.9
|
|
$
620.3
|
The net loss for the quarter and year are driven by the non-cash
pre-tax impairment charge recorded of $541.9. For the fourth quarter, the improvement
in Adjusted EBITDA and Adjusted diluted net earnings per common
share 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, higher
SG&A and overall unfavorable currency impacts. Adjusted diluted
net earnings per common share further benefited from lower taxes
partially offset by higher interest expense in the current quarter
as well.
For the full year, Adjusted net earnings per share was
significantly impacted by higher input costs throughout the year,
which were only partially offset by the price increases. In
addition, unfavorable currency movements significantly impacted the
full year results. These headwinds were partially offset by the
reduction in A&P spend, lower interest costs due to the
refinancing over the past two years and lower taxes.
For the quarter, currency had an unfavorable pre-tax impact of
$9.7 million, or $0.11 per share, and for fiscal 2022, currency
had an unfavorable pre-tax impact of $25.9
million, or $0.29 per
share.
Capital Allocation
- Operating cash flow for the fourth fiscal quarter was
$107.2 million, and free cash flow
was $95.3 million, or 12% of Net
Sales, as the Company returned to more normalized working capital
levels.
- Debt pay down in the quarter was $58.3
million and net debt decreased by $106.2 million. Net debt to Adjusted EBITDA was
5.8 times as of September 30,
2022.
- Subsequent to year-end, the Company paid down an additional
$25 million of debt.
- The Company paid dividends in the quarter of approximately
$21 million, or $0.30 per common share. Dividend payments for the
year were $84.9 million, or
$1.20 per common share.
- In January 2022, the mandatory
convertible preferred stock automatically converted to
approximately 4,700,000 shares of common stock. Prior to the
conversion, dividend payments were $8.1
million for the year.
Financial Outlook and Assumptions
for Fiscal 20231
For fiscal 2022, we were able to deliver results on both the top
and bottom line through pricing actions and consistent operational
execution. As we worked through various initiatives to navigate the
remaining impacts of the pandemic, persistent inflation on our
input costs and a rapidly appreciating US dollar, we have
identified a pipeline of incremental initiatives to support
long-term growth and normalized working capital. These initiatives
have now been built into a profit recovery program, Project
Momentum, which includes an enterprise-wide restructuring
component. Under Project Momentum, we will further leverage the
foundation we built through the first phase of our fiscal 2022
transformation programs by implementing a set of initiatives
intended to recover operating margins, cash flow and organizational
efficiency. Project Momentum has targeted annualized pre-tax
savings of approximately $80 million
to $100 million, with approximately
$30 million to $40 million of those savings to be recognized in
fiscal 2023.
The restructuring component is estimated to generate annualized
pre-tax savings of approximately $65
million to $80 million of the
total savings, and anticipated one-time pre-tax costs of
$40 million to $50 million over the next two years.
Looking specifically at our key metrics for our fiscal 2023
outlook:
- We expect organic revenue to increase low single digits, as
continued pricing actions are partially offset by category volume
declines across both the battery and auto care segments. We also
expect low single digit declines for reported revenues when
considering negative currency headwinds of approximately
$90 million, based on September 2022 rates.
- Adjusted EBITDA is expected to be in the range of $585 million to $615
million, up approximately 10% on a currency-neutral basis at
the mid-point, and Adjusted earnings per share is expected to be in
the range of $3.00 to $3.30, up approximately 12% on a currency-neutral
basis at the mid-point. We anticipate negative currency headwinds
on earnings of approximately $27
million and $0.30 per share
based on September 2022 rates.
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 2022 financial results and the financial outlook
for fiscal 2023. 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/ZrwLEwdJ6pl
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 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 August 8, 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,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
Net sales
|
$
790.4
|
|
$
766.0
|
|
$ 3,050.1
|
|
$ 3,021.5
|
Cost of products sold
(1)
|
504.9
|
|
486.3
|
|
1,930.6
|
|
1,860.1
|
Gross profit
|
285.5
|
|
279.7
|
|
1,119.5
|
|
1,161.4
|
Selling, general and
administrative expense (1)
|
120.1
|
|
121.8
|
|
484.5
|
|
487.2
|
Advertising and
promotion expense
|
27.3
|
|
41.3
|
|
137.1
|
|
162.1
|
Research and
development expense (1)
|
9.4
|
|
9.7
|
|
34.7
|
|
34.5
|
Amortization of
intangible assets
|
15.3
|
|
15.2
|
|
61.1
|
|
61.2
|
Impairment of goodwill
and intangible assets (2)
|
541.9
|
|
—
|
|
541.9
|
|
—
|
Interest
expense
|
42.0
|
|
36.8
|
|
158.4
|
|
161.8
|
Loss on extinguishment
of debt (3)
|
—
|
|
—
|
|
—
|
|
103.3
|
Other items, net
(1)
|
4.6
|
|
(2.1)
|
|
7.3
|
|
(2.9)
|
(Loss)/Earnings before
income taxes
|
(475.1)
|
|
57.0
|
|
(305.5)
|
|
154.2
|
Income tax
benefit
|
(112.2)
|
|
(26.2)
|
|
(74.0)
|
|
(6.7)
|
Net (loss)/earnings
from continuing operations
|
$
(362.9)
|
|
$
83.2
|
|
$
(231.5)
|
|
$
160.9
|
Mandatory preferred
stock dividends
|
—
|
|
(4.1)
|
|
(4.0)
|
|
(16.2)
|
Net (loss)/earnings
attributable to common shareholders
|
$ (362.9)
|
|
$
79.1
|
|
$ (235.5)
|
|
$
144.7
|
|
|
|
|
|
|
|
|
Basic net
(loss)/earnings per common share
|
$
(5.09)
|
|
$
1.17
|
|
$
(3.37)
|
|
$
2.12
|
Diluted net
(loss)/earnings per common share
|
$
(5.09)
|
|
$
1.14
|
|
$
(3.37)
|
|
$
2.11
|
|
|
|
|
|
|
|
|
Weighted average shares
of common stock - Basic
|
71.3
|
|
67.6
|
|
69.9
|
|
68.2
|
Weighted average shares
of common stock - Diluted
|
71.3
|
|
72.8
|
|
69.9
|
|
68.7
|
|
|
(1)
|
See the Supplemental
Schedules - Non-GAAP Reconciliation attached which breaks out the
costs from the flood of our Brazilian manufacturing facility, costs
of exiting the Russian market, restructuring costs and acquisition
and integration related costs included within these
lines.
|
|
|
(2)
|
The non-cash Impairment
of goodwill and intangible assets for the three 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 twelve months ended September 30,
2021 relates the Company's redemption of the €650 million Senior
Notes due in 2026 in June 2021, the redemption of the $600.0
million Senior Notes due in 2027 in January 2021 and the term loan
refinancing in December 2020.
|
ENERGIZER HOLDINGS,
INC. CONSOLIDATED BALANCE
SHEETS (Condensed) (In millions -
Unaudited)
|
|
|
|
SEPTEMBER
30,
|
|
|
2022
|
|
2021
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
205.3
|
|
$
238.9
|
Trade
receivables
|
|
421.7
|
|
292.9
|
Inventories
|
|
771.6
|
|
728.3
|
Other current
assets
|
|
191.4
|
|
179.4
|
Total current
assets
|
|
$
1,590.0
|
|
$
1,439.5
|
Property, plant and
equipment, net
|
|
362.1
|
|
382.9
|
Operating lease
asset
|
|
100.1
|
|
112.3
|
Goodwill
|
|
1,003.1
|
|
1,053.8
|
Other intangible
assets, net
|
|
1,295.8
|
|
1,871.3
|
Deferred tax
asset
|
|
61.8
|
|
21.7
|
Other assets
|
|
159.2
|
|
126.0
|
Total
assets
|
|
$
4,572.1
|
|
$
5,007.5
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Current maturities of
long-term debt
|
|
$
12.0
|
|
$
12.0
|
Current portion of
finance leases
|
|
0.4
|
|
2.3
|
Notes
payable
|
|
6.4
|
|
105.0
|
Accounts
payable
|
|
329.4
|
|
454.8
|
Current operating
lease liabilities
|
|
15.8
|
|
15.5
|
Other current
liabilities
|
|
333.9
|
|
356.8
|
Total current
liabilities
|
|
$
697.9
|
|
$
946.4
|
Long-term
debt
|
|
3,499.4
|
|
3,333.4
|
Operating lease
liabilities
|
|
88.2
|
|
102.3
|
Deferred tax
liability
|
|
17.9
|
|
91.3
|
Other
liabilities
|
|
138.1
|
|
178.4
|
Total
liabilities
|
|
$
4,441.5
|
|
$
4,651.8
|
Shareholders'
equity
|
|
|
|
|
Common
stock
|
|
0.8
|
|
0.7
|
Mandatory convertible
preferred stock
|
|
—
|
|
—
|
Additional paid-in
capital
|
|
828.7
|
|
832.0
|
Retained
earnings
|
|
(304.7)
|
|
(5.0)
|
Treasury
stock
|
|
(248.9)
|
|
(241.6)
|
Accumulated other
comprehensive loss
|
|
(145.3)
|
|
(230.4)
|
Total shareholders'
equity
|
|
$
130.6
|
|
$
355.7
|
Total liabilities and
shareholders' equity
|
|
$
4,572.1
|
|
$
5,007.5
|
ENERGIZER HOLDINGS,
INC. CONSOLIDATED STATEMENT OF CASH
FLOWS (Condensed) (In millions -
Unaudited)
|
|
|
FOR THE YEARS
ENDED
SEPTEMBER 30,
|
|
2022
|
|
2021
|
Cash Flow from
Operating Activities
|
|
|
|
Net
(loss)/earnings
|
$
(231.5)
|
|
$
160.9
|
Adjustments
to reconcile net (loss)/earnings to net cash flow from
operations:
|
|
|
|
Non-cash integration
and restructuring charges
|
3.0
|
|
8.9
|
Impairment of goodwill
and intangible assets
|
541.9
|
|
—
|
Depreciation and
amortization
|
121.6
|
|
118.5
|
Deferred income
taxes
|
(135.3)
|
|
(62.9)
|
Share-based
compensation expense
|
13.2
|
|
10.2
|
Gain on sale of real
estate
|
—
|
|
(3.3)
|
Gain on finance lease
termination
|
(4.5)
|
|
—
|
Loss on extinguishment
on debt
|
—
|
|
103.3
|
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
|
6.2
|
|
17.3
|
Other, net
|
(1.7)
|
|
(3.9)
|
Changes in
assets and liabilities used in operations, net of
acquisitions
|
|
|
|
(Increase)/decrease in
accounts receivable, net
|
(185.5)
|
|
9.5
|
Increase in
inventories
|
(94.2)
|
|
(211.8)
|
Decrease/(increase) in
other current assets
|
20.6
|
|
(7.4)
|
(Decrease)/increase in
accounts payable
|
(113.8)
|
|
51.4
|
Increase/(decrease) in
other current liabilities
|
38.7
|
|
(11.0)
|
Net cash from
operating activities
|
1.0
|
|
179.7
|
Cash Flow from
Investing Activities
|
|
|
|
Capital
expenditures
|
(77.8)
|
|
(64.9)
|
Proceeds from sale of
assets
|
0.6
|
|
5.7
|
Acquisition of
intangible assets
|
(14.7)
|
|
—
|
Acquisitions, net of
cash acquired and working capital settlements
|
1.0
|
|
(67.2)
|
Net cash used by
investing activities
|
(90.9)
|
|
(126.4)
|
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
|
(13.7)
|
|
(2,773.8)
|
Net
(decrease)/increase in debt with maturities 90 days or
less
|
(99.0)
|
|
102.1
|
Debt issuance
costs
|
(7.6)
|
|
(29.0)
|
Payments to terminate
finance lease obligations
|
(5.1)
|
|
—
|
Premiums paid on
extinguishment of debt
|
—
|
|
(141.1)
|
Dividends paid on
common stock
|
(84.9)
|
|
(83.9)
|
Dividends paid on
mandatory convertible preferred stock
|
(8.1)
|
|
(16.2)
|
Common stock
repurchased
|
—
|
|
(96.3)
|
Payment of contingent
consideration
|
—
|
|
(6.8)
|
Taxes paid for
withheld share-based payments
|
(2.5)
|
|
(6.7)
|
Net cash from/(used
by) financing activities
|
79.1
|
|
(1,069.1)
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
(22.8)
|
|
4.9
|
Net decrease in cash,
cash equivalents and restricted cash
|
(33.6)
|
|
(1,010.9)
|
Cash, cash equivalents
and restricted cash, beginning of period
|
238.9
|
|
1,249.8
|
Cash, cash equivalents
and restricted cash, end of period
|
$
205.3
|
|
$
238.9
|
ENERGIZER HOLDINGS, INC.
Supplemental Schedules
Introduction to the Reconciliation of GAAP and Non-GAAP
Measures
For the Quarter and Twelve Months ended September 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 impairment
of goodwill and intangible assets, acquisition and integration
costs, restructuring 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 finance lease termination, the loss on
extinguishment of debt and the one-time impact of Tax structuring.
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 on extinguishment of debt, the gain on
finance lease termination, other items, net, the charges related to
acquisition and integration costs, restructuring costs, 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 impairment of goodwill and intangible assets, costs related to
acquisition and integration, restructuring 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 finance lease termination, the loss
on extinguishment of debt and the one-time impact of Tax
structuring.
Non-GAAP Tax Rate. This is the tax rate when excluding
the pre-tax impact of impairment of goodwill and intangible assets,
acquisition and integration costs, restructuring 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 finance 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, as well as the
one-time impact of Tax structuring.
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 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,
restructuring costs, 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, depreciation and
amortization. Adjusted EBITDA further excludes the
impact of the costs related to acquisition and integration,
restructuring costs, acquisition earn out, the costs of the
flooding of our manufacturing facility in Brazil, the costs of exiting the Russian
market, the gain on finance lease termination, impairment of
goodwill and other intangible assets, 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.
Energizer Holdings,
Inc.
Supplemental Schedules - Segment Information and
Supplemental Sales Data
For the Quarter and Twelve Months
ended September 30, 2022
(In millions, except per
share data - 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 twelve months ended September 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
twelve months ended September 30,
2022 and 2021, respectively, are presented below:
|
For the Quarter
Ended
September 30,
|
|
For the Twelve
Months
Ended September 30,
|
Net
Sales
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Batteries &
Lights
|
$
639.0
|
|
$
603.3
|
|
$
2,427.3
|
|
$
2,402.8
|
Auto Care
|
151.4
|
|
162.7
|
|
622.8
|
|
618.7
|
Total net
sales
|
$
790.4
|
|
$
766.0
|
|
$
3,050.1
|
|
$
3,021.5
|
Segment
Profit
|
|
|
|
|
|
|
|
Batteries &
Lights
|
$
147.2
|
|
$
133.8
|
|
$
553.6
|
|
$
553.6
|
Auto Care
|
9.5
|
|
19.3
|
|
46.5
|
|
98.2
|
Total segment
profit
|
$
156.7
|
|
$
153.1
|
|
$
600.1
|
|
$
651.8
|
General corporate and
other expenses (1)
|
(26.7)
|
|
(24.7)
|
|
(101.6)
|
|
(96.0)
|
Amortization of
intangible assets
|
(15.3)
|
|
(15.2)
|
|
(61.1)
|
|
(61.2)
|
Impairment of goodwill
& intangible assets
|
(541.9)
|
|
—
|
|
(541.9)
|
|
—
|
Acquisition and
integration costs (2)
|
—
|
|
(14.3)
|
|
(16.5)
|
|
(68.9)
|
Acquisition earn out
(3)
|
—
|
|
(1.1)
|
|
(1.1)
|
|
(3.4)
|
Loss on extinguishment
of debt
|
—
|
|
—
|
|
—
|
|
(103.3)
|
Interest
expense
|
(42.0)
|
|
(36.8)
|
|
(158.4)
|
|
(161.8)
|
Project Momentum
Restructuring costs (1)
|
(0.9)
|
|
—
|
|
(0.9)
|
|
—
|
Exit of Russian market
(4)
|
(0.6)
|
|
—
|
|
(14.6)
|
|
—
|
Gain on finance lease
termination (5)
|
—
|
|
—
|
|
4.5
|
|
—
|
Brazil flood damage,
net of insurance proceeds (6)
|
0.2
|
|
—
|
|
(9.7)
|
|
—
|
Other items, net -
Adjusted (7)
|
(4.6)
|
|
(4.0)
|
|
(4.3)
|
|
(3.0)
|
Total
(loss)/earnings before income taxes
|
$
(475.1)
|
|
$
57.0
|
|
$
(305.5)
|
|
$
154.2
|
|
|
(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 September 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
where these charges are recorded in the Consolidated (Condensed)
Statement of Earnings.
|
(5)
|
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.
|
(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, net of
expected insurance proceeds. 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 product information is presented below for
depreciation and amortization:
|
For the Quarter
Ended
September 30,
|
|
For the Twelve
Months
Ended September 30,
|
Depreciation and
amortization
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Batteries &
Lights
|
$
14.2
|
|
$
12.6
|
|
$
50.6
|
|
$
49.0
|
Auto Care
|
3.1
|
|
2.0
|
|
9.9
|
|
8.3
|
Total segment
depreciation and amortization
|
17.3
|
|
14.6
|
|
60.5
|
|
57.3
|
Amortization of
intangible assets
|
15.3
|
|
15.2
|
|
61.1
|
|
61.2
|
Total depreciation
and amortization
|
$
32.6
|
|
$
29.8
|
|
$
121.6
|
|
$
118.5
|
Energizer Holdings,
Inc. Supplemental Schedules - GAAP EPS to Adjusted EPS
Reconciliation For the Quarter and Twelve Months ended
September 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 Quarter
Ended
September 30,
|
|
For the Twelve
Months Ended
September 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net (loss)/earnings
attributable to common shareholders
|
|
$
(362.9)
|
|
$
79.1
|
|
$
(235.5)
|
|
$
144.7
|
Mandatory preferred
stock dividends
|
|
—
|
|
(4.1)
|
|
(4.0)
|
|
(16.2)
|
Net
(loss)/earnings
|
|
(362.9)
|
|
83.2
|
|
(231.5)
|
|
160.9
|
Pre-tax
adjustments
|
|
|
|
|
|
|
|
|
Acquisition and
integration (1)
|
|
$
—
|
|
$
14.3
|
|
$
16.5
|
|
$
68.9
|
Acquisition earn
out
|
|
—
|
|
1.1
|
|
1.1
|
|
3.4
|
Impairment of goodwill
& intangible assets
|
|
541.9
|
|
—
|
|
541.9
|
|
—
|
Loss on extinguishment
of debt
|
|
—
|
|
—
|
|
—
|
|
103.3
|
Project Momentum
Restructuring costs (1)
|
|
0.9
|
|
—
|
|
0.9
|
|
—
|
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
|
|
$
543.2
|
|
$
15.4
|
|
$
580.2
|
|
$
175.6
|
Total adjustments, after tax
|
|
$
421.4
|
|
$
(25.4)
|
|
$
452.6
|
|
$
94.5
|
Adjusted net earnings
(2)
|
|
$
58.5
|
|
$
57.8
|
|
$
221.1
|
|
$
255.4
|
Diluted net earnings
per common share
|
|
$
(5.09)
|
|
$
1.14
|
|
$
(3.37)
|
|
$
2.11
|
Adjustments
|
|
|
|
|
|
|
|
|
Acquisition and
integration
|
|
(0.01)
|
|
0.17
|
|
0.17
|
|
0.79
|
Acquisition earn
out
|
|
—
|
|
0.01
|
|
0.01
|
|
0.03
|
Impairment of goodwill
& intangible assets
|
|
5.86
|
|
—
|
|
5.86
|
|
—
|
Loss on extinguishment
of debt
|
|
—
|
|
—
|
|
—
|
|
1.11
|
Project Momentum
Restructuring costs (1)
|
|
0.01
|
|
—
|
|
0.01
|
|
—
|
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
|
|
—
|
Tax
structuring
|
|
—
|
|
(0.53)
|
|
—
|
|
(0.56)
|
Impact for diluted
share calculation (3)
|
|
0.03
|
|
—
|
|
0.14
|
|
—
|
Adjusted diluted net
earnings per diluted common share (3)
|
|
$
0.82
|
|
$
0.79
|
|
$
3.08
|
|
$
3.48
|
Weighted average shares
of common stock - Diluted
|
|
71.3
|
|
72.8
|
|
69.9
|
|
68.7
|
Adjusted Weighted
average shares of common stock - Diluted (3)
|
|
71.7
|
|
72.8
|
|
71.7
|
|
68.7
|
|
|
(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, 2022 and 2021 was 14.1% and 20.2%,
respectively, and for the twelve months ended September 30, 2022
and 2021 was 19.5% and 22.6%, 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.
|
For the quarter ended September 30,
2021, the diluted net earnings per common share is assuming
the conversion of the mandatory convertible preferred stock to 4.7
million shares of common stock and excluding the mandatory
preferred stock dividends from net earnings. For the year ended
September 30, 2021, 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.
Energizer Holdings,
Inc. Supplemental Schedules - Segment Sales For
the Quarter and Twelve Months Ended September 30,
2022 (In millions, except per share data -
Unaudited)
|
|
Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Batteries &
Lights
|
Q1'22
|
|
% Chg
|
|
Q2'22
|
|
% Chg
|
|
Q3'22
|
|
% Chg
|
|
Q4'22
|
|
% Chg
|
|
FY
'22
|
|
% Chg
|
Net sales - prior
year
|
$
743.9
|
|
|
|
$
542.9
|
|
|
|
$
512.7
|
|
|
|
$
603.3
|
|
|
|
$
2,402.8
|
|
|
Organic
|
(1.7)
|
|
(0.2) %
|
|
(16.6)
|
|
(3.1) %
|
|
38.0
|
|
7.4 %
|
|
65.1
|
|
10.8 %
|
|
84.8
|
|
3.5 %
|
Change in Russia
operations
|
—
|
|
— %
|
|
(2.3)
|
|
(0.4) %
|
|
(7.8)
|
|
(1.5) %
|
|
(8.9)
|
|
(1.5) %
|
|
(19.0)
|
|
(0.8) %
|
Change in Argentina
operations
|
2.4
|
|
0.3 %
|
|
1.4
|
|
0.3 %
|
|
5.5
|
|
1.1 %
|
|
2.5
|
|
0.4 %
|
|
11.8
|
|
0.5 %
|
Impact of
currency
|
(4.4)
|
|
(0.6) %
|
|
(8.9)
|
|
(1.7) %
|
|
(16.8)
|
|
(3.3) %
|
|
(23.0)
|
|
(3.8) %
|
|
(53.1)
|
|
(2.2) %
|
Net sales - current
year
|
$
740.2
|
|
(0.5) %
|
|
$
516.5
|
|
(4.9) %
|
|
$
531.6
|
|
3.7 %
|
|
$
639.0
|
|
5.9 %
|
|
$
2,427.3
|
|
1.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Auto
Care
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales - prior
year
|
$
104.7
|
|
|
|
$
142.2
|
|
|
|
$
209.1
|
|
|
|
$
162.7
|
|
|
|
$
618.7
|
|
|
Organic
|
1.4
|
|
1.3 %
|
|
27.6
|
|
19.4 %
|
|
(10.7)
|
|
(5.1) %
|
|
(8.7)
|
|
(5.3) %
|
|
9.6
|
|
1.6 %
|
Change in Russia
operations
|
—
|
|
— %
|
|
—
|
|
— %
|
|
(0.1)
|
|
— %
|
|
(0.2)
|
|
(0.1) %
|
|
(0.3)
|
|
— %
|
Change in Argentina
operations
|
—
|
|
— %
|
|
—
|
|
— %
|
|
—
|
|
— %
|
|
0.1
|
|
0.1 %
|
|
0.1
|
|
— %
|
Impact of
currency
|
—
|
|
— %
|
|
(0.9)
|
|
(0.6) %
|
|
(1.9)
|
|
(1.0) %
|
|
(2.5)
|
|
(1.5) %
|
|
(5.3)
|
|
(0.9) %
|
Net sales - current
year
|
$
106.1
|
|
1.3 %
|
|
$
168.9
|
|
18.8 %
|
|
$
196.4
|
|
(6.1) %
|
|
$
151.4
|
|
(6.9) %
|
|
$
622.8
|
|
0.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales - prior
year
|
$
848.6
|
|
|
|
$
685.1
|
|
|
|
$
721.8
|
|
|
|
$
766.0
|
|
|
|
$
3,021.5
|
|
|
Organic
|
(0.3)
|
|
— %
|
|
11.0
|
|
1.6 %
|
|
27.3
|
|
3.8 %
|
|
56.4
|
|
7.4 %
|
|
94.4
|
|
3.1 %
|
Change in Russia
operations
|
—
|
|
— %
|
|
(2.3)
|
|
(0.3) %
|
|
(7.9)
|
|
(1.1) %
|
|
(9.1)
|
|
(1.2) %
|
|
(19.3)
|
|
(0.6) %
|
Change in Argentina
operations
|
2.4
|
|
0.3 %
|
|
1.4
|
|
0.2 %
|
|
5.5
|
|
0.8 %
|
|
2.6
|
|
0.3 %
|
|
11.9
|
|
0.4 %
|
Impact of
currency
|
(4.4)
|
|
(0.6) %
|
|
(9.8)
|
|
(1.5) %
|
|
(18.7)
|
|
(2.6) %
|
|
(25.5)
|
|
(3.3) %
|
|
(58.4)
|
|
(2.0) %
|
Net sales - current
year
|
$
846.3
|
|
(0.3) %
|
|
$
685.4
|
|
— %
|
|
$
728.0
|
|
0.9 %
|
|
$
790.4
|
|
3.2 %
|
|
$
3,050.1
|
|
0.9 %
|
Energizer Holdings,
Inc. Supplemental Schedules - Segment
Profit For the Quarter and Twelve Months Ended September
30, 2022 (In millions, except per share data -
Unaudited)
|
|
Segment
Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Batteries &
Lights
|
Q1'22
|
|
% Chg
|
|
Q2'22
|
|
% Chg
|
|
Q3'22
|
|
% Chg
|
|
Q4'22
|
|
% Chg
|
|
FY
'22
|
|
% Chg
|
Segment Profit - prior
year
|
$
180.5
|
|
|
|
$
125.4
|
|
|
|
$
113.9
|
|
|
|
$
133.8
|
|
|
|
$
553.6
|
|
|
Organic
|
(15.9)
|
|
(8.8) %
|
|
(26.8)
|
|
(21.4) %
|
|
35.7
|
|
31.3 %
|
|
21.6
|
|
16.1 %
|
|
14.6
|
|
2.6 %
|
Change in Russia
operations
|
—
|
|
— %
|
|
(0.5)
|
|
(0.4) %
|
|
(1.8)
|
|
(1.6) %
|
|
(1.7)
|
|
(1.3) %
|
|
(4.0)
|
|
(0.7) %
|
Change in Argentina
operations
|
3.0
|
|
1.7 %
|
|
1.1
|
|
0.9 %
|
|
3.2
|
|
2.8 %
|
|
2.3
|
|
1.7 %
|
|
9.6
|
|
1.7 %
|
Impact of
currency
|
0.8
|
|
0.4 %
|
|
(3.9)
|
|
(3.1) %
|
|
(8.3)
|
|
(7.2) %
|
|
(8.8)
|
|
(6.5) %
|
|
(20.2)
|
|
(3.6) %
|
Segment Profit -
current year
|
$
168.4
|
|
(6.7) %
|
|
$
95.3
|
|
(24.0) %
|
|
$
142.7
|
|
25.3 %
|
|
$
147.2
|
|
10.0 %
|
|
$
553.6
|
|
— %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Auto
Care
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit - prior
year
|
$ 18.3
|
|
|
|
$ 28.9
|
|
|
|
$ 31.7
|
|
|
|
$ 19.3
|
|
|
|
$ 98.2
|
|
|
Organic
|
(18.4)
|
|
(100.5) %
|
|
(4.0)
|
|
(13.8) %
|
|
(17.5)
|
|
(55.2) %
|
|
(8.3)
|
|
(43.0) %
|
|
(48.2)
|
|
(49.1) %
|
Change in Russia
operations
|
—
|
|
— %
|
|
—
|
|
— %
|
|
—
|
|
— %
|
|
—
|
|
— %
|
|
—
|
|
— %
|
Change in Argentina
operations
|
—
|
|
— %
|
|
—
|
|
— %
|
|
—
|
|
— %
|
|
0.1
|
|
0.5 %
|
|
0.1
|
|
0.1 %
|
Impact of
currency
|
(0.1)
|
|
(0.6) %
|
|
(0.6)
|
|
(2.1) %
|
|
(1.3)
|
|
(4.1) %
|
|
(1.6)
|
|
(7.8) %
|
|
(3.6)
|
|
(3.5) %
|
Segment Profit -
current year
|
$
(0.2)
|
|
(101.1) %
|
|
$
24.3
|
|
(15.9) %
|
|
$
12.9
|
|
(59.3) %
|
|
$
9.5
|
|
(50.8) %
|
|
$
46.5
|
|
(52.6) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Segment
Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit - prior
year
|
$
198.8
|
|
|
|
$
154.3
|
|
|
|
$
145.6
|
|
|
|
$
153.1
|
|
|
|
$
651.8
|
|
|
Organic
|
(34.3)
|
|
(17.3) %
|
|
(30.8)
|
|
(20.0) %
|
|
18.2
|
|
12.5 %
|
|
13.3
|
|
8.7 %
|
|
(33.6)
|
|
(5.2) %
|
Change in Russia
operations
|
—
|
|
— %
|
|
(0.5)
|
|
(0.3) %
|
|
(1.8)
|
|
(1.2) %
|
|
(1.7)
|
|
(1.1) %
|
|
(4.0)
|
|
(0.6) %
|
Change in Argentina
operations
|
3.0
|
|
1.5 %
|
|
1.1
|
|
0.7 %
|
|
3.2
|
|
2.2 %
|
|
2.4
|
|
1.6 %
|
|
9.7
|
|
1.5 %
|
Impact of
currency
|
0.7
|
|
0.4 %
|
|
(4.5)
|
|
(2.9) %
|
|
(9.6)
|
|
(6.6) %
|
|
(10.4)
|
|
(6.8) %
|
|
(23.8)
|
|
(3.6) %
|
Segment Profit -
current year
|
$
168.2
|
|
(15.4) %
|
|
$
119.6
|
|
(22.5) %
|
|
$
155.6
|
|
6.9 %
|
|
$
156.7
|
|
2.4 %
|
|
$
600.1
|
|
(7.9) %
|
Energizer Holdings,
Inc.
Supplemental Schedules - Non-GAAP Reconciliations
For the Quarter and Twelve Months Ended September 30,
2022
(In millions, except per share data -
Unaudited)
|
|
Gross
Profit
|
Q1'22
|
Q2'22
|
Q3'22
|
Q4'22
|
|
Q1'21
|
Q2'21
|
Q3'21
|
Q4'21
|
|
2022
|
2021
|
Net Sales
|
$846.3
|
$685.4
|
$728.0
|
$790.4
|
|
$848.6
|
$685.1
|
$721.8
|
$766.0
|
|
$3,050.1
|
$3,021.5
|
Cost of products sold -
adjusted
|
528.7
|
446.3
|
434.1
|
504.5
|
|
503.0
|
407.3
|
438.9
|
477.2
|
|
1,913.6
|
1,826.4
|
Adjusted Gross
Profit
|
$317.6
|
$239.1
|
$293.9
|
$285.9
|
|
$345.6
|
$277.8
|
$282.9
|
$288.8
|
|
$1,136.5
|
$1,195.1
|
Adjusted Gross
Margin
|
37.5 %
|
34.9 %
|
40.4 %
|
36.2 %
|
|
40.7 %
|
40.5 %
|
39.2 %
|
37.7 %
|
|
37.3 %
|
39.6 %
|
Acquisition and
integration costs
|
6.0
|
—
|
—
|
—
|
|
7.7
|
7.3
|
9.6
|
9.1
|
|
6.0
|
33.7
|
Exit of Russian
market
|
—
|
0.7
|
—
|
0.6
|
|
—
|
—
|
—
|
—
|
|
1.3
|
—
|
Brazil flood damage,
net of insurance proceeds
|
—
|
—
|
9.9
|
(0.2)
|
|
—
|
—
|
—
|
—
|
|
9.7
|
—
|
Reported Cost of
products sold
|
534.7
|
447.0
|
444.0
|
504.9
|
|
510.7
|
414.6
|
448.5
|
486.3
|
|
1,930.6
|
1,860.1
|
Reported Gross
Profit
|
$311.6
|
$238.4
|
$284.0
|
$285.5
|
|
$337.9
|
$270.5
|
$273.3
|
$279.7
|
|
$1,119.5
|
$1,161.4
|
Reported Gross
Margin
|
36.8 %
|
34.8 %
|
39.0 %
|
36.1 %
|
|
39.8 %
|
39.5 %
|
37.9 %
|
36.5 %
|
|
36.7 %
|
38.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SG&A
|
Q1'22
|
Q2'22
|
Q3'22
|
Q4'22
|
|
Q1'21
|
Q2'21
|
Q3'21
|
Q4'21
|
|
2022
|
2021
|
Segment
SG&A
|
$89.9
|
$92.0
|
$91.3
|
$92.5
|
|
$89.7
|
$88.3
|
$85.1
|
$84.7
|
|
$365.7
|
$347.8
|
Corporate
SG&A
|
21.7
|
25.6
|
27.6
|
26.7
|
|
24.0
|
25.8
|
21.5
|
24.7
|
|
101.6
|
96.0
|
SG&A Adjusted -
subtotal
|
$111.6
|
$117.6
|
$118.9
|
$119.2
|
|
$113.7
|
$114.1
|
$106.6
|
$109.4
|
|
$467.3
|
$443.8
|
SG&A Adjusted %
of Net Sales
|
13.2 %
|
17.2 %
|
16.3 %
|
15.1 %
|
|
13.4 %
|
16.7 %
|
14.8 %
|
14.3 %
|
|
15.3 %
|
14.7 %
|
Project Momentum
Restructuring costs
|
—
|
—
|
—
|
0.9
|
|
—
|
—
|
—
|
—
|
|
0.9
|
—
|
Acquisition and
integration costs
|
9.4
|
—
|
—
|
—
|
|
10.4
|
8.6
|
9.7
|
11.3
|
|
9.4
|
40.0
|
Acquisition earn
out
|
1.1
|
—
|
—
|
—
|
|
—
|
1.1
|
1.2
|
1.1
|
|
1.1
|
3.4
|
Exit of Russian
market
|
—
|
5.8
|
—
|
—
|
|
—
|
—
|
—
|
—
|
|
5.8
|
—
|
Reported
SG&A
|
$122.1
|
$123.4
|
$118.9
|
$120.1
|
|
$124.1
|
$123.8
|
$117.5
|
$121.8
|
|
$484.5
|
$487.2
|
Reported SG&A %
of Net Sales
|
14.4 %
|
18.0 %
|
16.3 %
|
15.2 %
|
|
14.6 %
|
18.1 %
|
16.3 %
|
15.9 %
|
|
15.9 %
|
16.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other items,
net
|
Q1'22
|
Q2'22
|
Q3'22
|
Q4'22
|
|
Q1'21
|
Q2'21
|
Q3'21
|
Q4'21
|
|
2022
|
2021
|
Interest
income
|
$(0.2)
|
$(0.3)
|
$(0.2)
|
$(0.3)
|
|
$(0.1)
|
$(0.2)
|
$(0.2)
|
$(0.2)
|
|
$(1.0)
|
$(0.7)
|
Foreign currency
exchange loss/(gain)
|
1.3
|
(0.1)
|
2.5
|
4.1
|
|
1.3
|
0.5
|
(0.9)
|
4.6
|
|
7.8
|
5.5
|
Pension benefit other
than service costs
|
(1.1)
|
(1.1)
|
(1.0)
|
(0.9)
|
|
(0.5)
|
(0.5)
|
(0.6)
|
(0.3)
|
|
(4.1)
|
(1.9)
|
Other
|
0.2
|
—
|
(0.3)
|
1.7
|
|
—
|
0.1
|
0.1
|
(0.1)
|
|
1.6
|
0.1
|
Other items, net -
Adjusted
|
0.2
|
(1.5)
|
1.0
|
4.6
|
|
0.7
|
(0.1)
|
(1.6)
|
4.0
|
|
4.3
|
3.0
|
Gain on sale of
assets
|
—
|
—
|
—
|
—
|
|
—
|
—
|
—
|
(3.3)
|
|
—
|
(3.3)
|
Other
|
—
|
—
|
—
|
—
|
|
0.1
|
—
|
0.1
|
(2.8)
|
|
—
|
(2.6)
|
Exit of Russian
market
|
—
|
7.5
|
—
|
—
|
|
—
|
—
|
—
|
—
|
|
7.5
|
—
|
Gain on termination of
finance lease
|
—
|
—
|
(4.5)
|
—
|
|
—
|
—
|
—
|
—
|
|
(4.5)
|
—
|
Total Other items,
net
|
$0.2
|
$6.0
|
$(3.5)
|
$4.6
|
|
$0.8
|
$(0.1)
|
$(1.5)
|
$(2.1)
|
|
$7.3
|
$(2.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration
|
Q1'22
|
Q2'22
|
Q3'22
|
Q4'22
|
|
Q1'21
|
Q2'21
|
Q3'21
|
Q4'21
|
|
2022
|
2021
|
Cost of products
sold
|
$6.0
|
$—
|
$—
|
$—
|
|
$7.7
|
$7.3
|
$9.6
|
$9.1
|
|
$6.0
|
$33.7
|
SG&A
|
9.4
|
—
|
—
|
—
|
|
10.4
|
8.6
|
9.7
|
11.3
|
|
9.4
|
40.0
|
Research and
development
|
1.1
|
—
|
—
|
—
|
|
0.1
|
0.9
|
0.1
|
—
|
|
1.1
|
1.1
|
Other items,
net
|
—
|
—
|
—
|
—
|
|
0.1
|
—
|
0.1
|
(6.1)
|
|
—
|
(5.9)
|
Acquisition and
integration related items
|
$16.5
|
$—
|
$—
|
$—
|
|
$18.3
|
$16.8
|
$19.5
|
$14.3
|
|
$16.5
|
$68.9
|
Energizer Holdings,
Inc. Supplemental Schedules -
Non-GAAP Reconciliations cont. For the Quarter
and Twelve Months Ended September 30, 2022 (In millions,
except per share data - Unaudited)
|
|
|
Q1'22
|
|
Q2'22
|
|
Q3'22
|
|
Q4'22
|
|
FY
2022
|
|
Q4'21
|
|
FY2021
|
Net
earnings/(loss)
|
$ 60.0
|
|
$ 19.0
|
|
$ 52.4
|
|
$
(362.9)
|
|
$
(231.5)
|
|
$ 83.2
|
|
$ 160.9
|
Income tax
provision/(benefit)
|
16.5
|
|
9.0
|
|
12.7
|
|
(112.2)
|
|
(74.0)
|
|
(26.2)
|
|
(6.7)
|
Earnings/(loss)
before income taxes
|
76.5
|
|
28.0
|
|
65.1
|
|
(475.1)
|
|
(305.5)
|
|
57.0
|
|
154.2
|
Interest
expense
|
37.0
|
|
38.3
|
|
41.1
|
|
42.0
|
|
158.4
|
|
36.8
|
|
161.8
|
Loss on extinguishment
of debt
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
103.3
|
Depreciation &
Amortization
|
29.4
|
|
29.2
|
|
30.4
|
|
32.6
|
|
121.6
|
|
29.8
|
|
118.5
|
EBITDA
|
142.9
|
|
95.5
|
|
136.6
|
|
(400.5)
|
|
(25.5)
|
|
123.6
|
|
537.8
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration costs
|
16.5
|
|
—
|
|
—
|
|
—
|
|
16.5
|
|
14.3
|
|
68.9
|
Project Momentum
Restructuring costs
|
—
|
|
—
|
|
—
|
|
0.9
|
|
0.9
|
|
—
|
|
—
|
Exit of Russian
market
|
—
|
|
14.0
|
|
—
|
|
0.6
|
|
14.6
|
|
—
|
|
—
|
Gain on finance lease
termination
|
—
|
|
—
|
|
(4.5)
|
|
—
|
|
(4.5)
|
|
—
|
|
—
|
Brazil flood damage,
net of insurance proceeds
|
—
|
|
—
|
|
9.9
|
|
(0.2)
|
|
9.7
|
|
—
|
|
—
|
Acquisition earn
out
|
1.1
|
|
—
|
|
—
|
|
—
|
|
1.1
|
|
1.1
|
|
3.4
|
Impairment of goodwill
& intangible assets
|
—
|
|
—
|
|
—
|
|
541.9
|
|
541.9
|
|
—
|
|
—
|
Share-based
payments
|
1.3
|
|
5.1
|
|
3.5
|
|
3.3
|
|
13.2
|
|
(3.1)
|
|
10.2
|
Adjusted
EBITDA
|
$
161.8
|
|
$
114.6
|
|
$
145.5
|
|
$
146.0
|
|
$ 567.9
|
|
$ 135.9
|
|
$ 620.3
|
Free Cash
Flow
|
|
Net cash from operating
activities for the twelve months ended September 30,
2022
|
$
1.0
|
Net cash from operating
activities for the nine months ended June 30, 2022
|
(106.2)
|
Net cash from
operating activities for the three months ended September 30,
2022
|
$
107.2
|
|
|
Capital expenditures
for the twelve months ended September 30, 2022
|
$
77.8
|
Capital expenditures
for the nine months ended June 30, 2022
|
65.8
|
Capital expenditures
for the three months ended September 30, 2022
|
$
12.0
|
|
|
Proceeds from sale of
assets for the twelve months ended September 30, 2022
|
$
0.6
|
Proceeds from sale of
assets for the nine months ended June 30, 2022
|
0.5
|
Proceeds from sale
of assets for the three months ended September 30,
2022
|
$
0.1
|
|
|
Free Cash Flow for
the three months ended September 30, 2022
|
$
95.3
|
Net
Debt
|
9/30/2022
|
|
6/30/2022
|
Current maturities of
long-term debt
|
$
12.0
|
|
$
12.0
|
Current portion of
finance leases
|
0.4
|
|
0.6
|
Notes
payable
|
6.4
|
|
61.4
|
Long-term
debt
|
3,499.4
|
|
3,544.6
|
Total debt per the
balance sheet
|
$
3,518.2
|
|
$
3,618.6
|
Cash and cash
equivalents
|
205.3
|
|
199.5
|
Net
Debt
|
$
3,312.9
|
|
$
3,419.1
|
Energizer Holdings,
Inc. Supplemental Schedules -
Non-GAAP Reconciliations cont. Fiscal 2023
Outlook (In millions, except per share data -
Unaudited)
|
|
Fiscal 2023 Outlook
Reconciliation - Adjusted earnings and Adjusted diluted net
earnings per common share (EPS)
|
|
|
|
|
|
|
(in millions, except
per share data)
|
Net
earnings
|
|
EPS
|
Fiscal 2023 - GAAP
Outlook
|
$201
|
to
|
$226
|
|
$2.79
|
to
|
$3.14
|
Impacts:
|
|
|
|
|
|
|
|
Project Momentum
Restructuring costs
|
15
|
|
12
|
|
0.21
|
|
0.16
|
|
|
|
|
|
|
Fiscal 2023 - Adjusted
Outlook
|
$216
|
to
|
$238
|
|
$3.00
|
to
|
$3.30
|
Fiscal 2023 Outlook
Reconciliation - Adjusted EBITDA
|
(in millions, except
per share data)
|
|
|
|
Net earnings
|
$201
|
to
|
$226
|
Income tax
provision
|
32
|
to
|
62
|
Earnings before income
taxes
|
$233
|
to
|
$288
|
Interest
expense
|
172
|
to
|
168
|
Amortization
|
65
|
to
|
60
|
Depreciation
|
70
|
to
|
64
|
EBITDA
|
$540
|
to
|
$580
|
|
|
|
|
Adjustments:
|
|
|
|
Project Momentum
Restructuring costs
|
20
|
to
|
15
|
Share-based
payments
|
25
|
to
|
20
|
Adjusted
EBITDA
|
$585
|
to
|
$615
|
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SOURCE Energizer Holdings, Inc.