- Net sales in the second quarter of $684.1 million, with organic growth of
2.6%.1
- Gross margin improvement of 220 basis points over prior
year, 300 basis points on an adjusted basis.1
- Earnings per share of $0.55
and Adjusted earnings per share of $0.64, up 36% compared to prior
year.1
- Operating cash flow of $210.2
million with Free cash flow exceeding 13% of Net
Sales year-to-date.1
- Debt pay down of over $150
million in the first two quarters reducing leverage by 1/2
turn year-over-year.
- Reaffirms fiscal year outlook for Net sales, Adjusted
earnings per share and Adjusted EBITDA.1
ST.
LOUIS, May 8, 2023 /PRNewswire/ --
Energizer Holdings, Inc. (NYSE: ENR) today announced
results for the second fiscal quarter ended March 31,
2023.
"We were pleased to deliver a strong second quarter, with
organic growth and gross margin improvement across both of our
Battery and Auto Care businesses," said Mark LaVigne, Chief Executive Officer. "We
continue to make significant progress on Project Momentum, and we
are beginning to see the benefits to the organization and within
our financial results. Importantly, we improved adjusted
gross margin by 300 basis points, grew adjusted earnings per share
by 36%, and paid down over $100
million of debt in the quarter. While the macro
environment remains uncertain, our strategies and investments in
the business position us to deliver growth and value creation, and
we remain on track to deliver on our outlook for the full
year."
Top-Line Performance
For the quarter, we had Net sales of $684.1 million compared to $685.4 million in the prior year period.
|
Second
Quarter
|
|
% Chg
|
Net sales -
FY'22
|
$
685.4
|
|
|
Organic
|
17.5
|
|
2.6 %
|
Change in Argentina
Operations
|
0.7
|
|
0.1 %
|
Change in Russia
Operations
|
(5.1)
|
|
(0.7) %
|
Impact of
currency
|
(14.4)
|
|
(2.2) %
|
Net sales -
FY'23
|
$
684.1
|
|
(0.2) %
|
- Organic Net sales increased 2.6% primarily due to the following
items:
-
- The continued benefit of global pricing actions in both the
battery and auto care businesses contributed approximately 13.0% to
organic sales.
- Partially offsetting the increase were volume declines
impacting organic revenue by approximately 9.5% due to the impact
of higher retail pricing across both battery and auto care as well
as general economic conditions impacting the consumer; and
- As part of our focus on gross margin restoration, the Company
exited some lower margin profile battery customers and products,
resulting in approximately 1.0% decline to organic sales.
1) See Press Release
attachments and supplemental schedules for additional information,
including the GAAP and Non-GAAP reconciliations.
|
Gross Margin
Gross margin percentage on a reported basis was 37.0% versus
34.8% in the prior year. Excluding the current year restructuring
costs and prior year costs related to exiting the Russian market,
adjusted gross margin was 37.9%, up 300 basis points from the prior
year adjusted gross margin of 34.9%.(1)
|
Second
Quarter
|
Gross margin - FY'22
Reported
|
34.8 %
|
Prior year impact of
exiting the Russian market
|
0.1 %
|
Gross margin - FY'22
Adjusted(1)
|
34.9 %
|
Pricing
|
7.6 %
|
Project Momentum
continuous improvement initiatives
|
1.4 %
|
Mix impact
|
0.1 %
|
Product cost
impacts
|
(5.5) %
|
Currency impact and
other
|
(0.6) %
|
Gross margin - FY'23
Adjusted(1)
|
37.9 %
|
Current year impact of
restructuring costs
|
(0.9) %
|
Gross margin - FY'23
Reported
|
37.0 %
|
The Gross margin increase was largely driven by the continued
benefit of the pricing initiatives, Project Momentum savings of
$10.7 million and the benefit of
exiting lower margin battery business. These benefits were
partially offset by higher operating costs, including raw
materials, consistent with ongoing inflationary trends, as well as
adverse currency impacts.
Selling, General and Administrative Expense
(SG&A)
SG&A, excluding restructuring costs, for the second quarter
was 17.0% of Net sales, or $116.5
million, compared to 17.2%, or $117.6
million in the prior year, excluding the costs to exit the
Russian market. The year-over-year decrease was primarily driven by
Project Momentum savings and favorable currency impacts. These
declines were partially offset by higher stock compensation expense
and factoring fees in the current year.(1)
Advertising and Promotion Expense (A&P)
A&P was 2.7% of net sales for the second fiscal quarter,
compared to 2.9% in the prior year or a $1.2
million decrease.
Earnings Per Share
and Adjusted EBITDA
|
Second
Quarter
|
(In millions, except
per share data)
|
2023
|
|
2022
|
Net earnings
|
$
40.0
|
|
$
19.0
|
Diluted net earnings
per common share
|
$
0.55
|
|
$
0.27
|
|
|
|
|
Adjusted net
earnings(1)
|
$
46.5
|
|
$
33.3
|
Adjusted diluted net
earnings per common share(1)
|
$
0.64
|
|
$
0.47
|
Adjusted
EBITDA(1)
|
$
139.5
|
|
$
114.6
|
|
|
|
|
Currency neutral
Adjusted diluted net earnings per common
share(1)
|
$
0.75
|
|
|
Currency neutral
Adjusted EBITDA(1)
|
$
149.9
|
|
|
The improvement in Net earnings, Earnings per share and Adjusted
EBITDA for the quarter reflects the increase in organic net sales,
gross margin improvement driven by increased pricing and Project
Momentum initiatives, and decreased A&P and SG&A
spending. These increases were partially offset by increased
Interest expense and adverse currency movements.
Capital Allocation
- Dividend payments in the quarter were approximately
$22 million, or $0.30 per common share.
- Operating cash flow for the first half of the year was
$210.2 million, and free cash flow
was $192.2 million, or 13.3% of Net
sales.
- Debt pay down in the first half of the year was $158.2 million and net debt decreased by
$77.7 million. Net debt to Adjusted
EBITDA was 5.6 times as of March 31,
2023.
Financial Outlook and Assumptions for Fiscal Year
2023(1)
We are maintaining our previously communicated full year
outlook, with organic revenue expected to increase low single
digits, Adjusted EBITDA in the range of $585
million to $615 million, and
Adjusted earnings per share in the range of $3.00 to $3.30. We still expect low single digit
declines for reported revenues due to the currency headwinds we
experienced in the first half of the year of approximately
$44 million. Currency also negatively
impacted pre-tax earnings by approximately $20 million, or $0.22 per share, in the first half of the year.
Based on current rates, we anticipate currency impacts on revenues
and earnings to be neutral over the remainder of the year relative
to fiscal 2022.
Project Momentum remains on track with approximately
$20 million of savings delivered in
the first half of the year and total project savings of
$30 million to $40 million anticipated for the full year. Total
one-time project cash costs for the current year are expected to be
in the range of $25 million to
$35 million and capital expenditures
for the program this year are expected to be $15 million to $20
million, which is largely incorporated into our annual
capital budget expectations of 2% of net sales. We remain on track
to deliver our previously reported total savings and one-time costs
over the life of the program.
Webcast Information
In conjunction with this announcement, the Company will hold an
investor conference call beginning at 10:00
a.m. Eastern Time today. The call will focus on second
fiscal quarter earnings and recent trends in the business. All
interested parties may access a live webcast of this conference
call at www.energizerholdings.com, under "Investors" and "Events
and Presentations" tabs or by using the following link:
https://app.webinar.net/53OznlEp8gq
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," "will," "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. All forward-looking statements should be
evaluated with the understanding of their inherent uncertainty.
Numerous factors could cause our actual results and events to
differ materially from those expressed or implied by
forward-looking statements, including, without limitation:
- Global economic and financial market conditions, including the
conditions resulting from the COVID-19 pandemic, and actions taken
by our customers, suppliers, other business partners and
governments in markets in which we compete might materially and
negatively impact us.
- Competition in our product categories might hinder our ability
to execute our business strategy, achieve profitability, or
maintain relationships with existing customers.
- Changes in the retail environment and consumer preferences
could adversely affect our business, financial condition and
results of operations.
- We must successfully manage the demand, supply, and operational
challenges brought about by the COVID-19 pandemic and any other
disease outbreak, including epidemics, pandemics, or similar
widespread public health concerns.
- Loss or impairment of the reputation of our Company or our
leading brands or failure of our marketing plans could have an
adverse effect on our business.
- Loss of any of our principal customers could significantly
decrease our sales and profitability.
- Our ability to meet our growth targets depends on successful
product, marketing and operations innovation and successful
responses to competitive innovation and changing consumer
habits.
- We are subject to risks related to our international
operations, including currency fluctuations, which could adversely
affect our results of operations.
- If we fail to protect our intellectual property rights,
competitors may manufacture and market similar products, which
could adversely affect our market share and results of
operations.
- Changes in production costs, including raw material prices and
transportation costs, from inflation or otherwise, have adversely
affected, and in the future could erode, our profit margins and
negatively impact operating results.
- Our reliance on certain significant suppliers subjects us to
numerous risks, including possible interruptions in supply, which
could adversely affect our business.
- Our business is vulnerable to the availability of raw
materials, our ability to forecast customer demand and our ability
to manage production capacity.
- The manufacturing facilities, supply channels or other business
operations of the Company and our suppliers may be subject to
disruption from events beyond our control.
- The Company's future results may be affected by its operational
execution, including scenarios where the Company generates fewer
productivity improvements than estimated.
- If our goodwill and indefinite-lived intangible assets become
impaired, we will be required to record impairment charges, which
may be significant.
- A failure of a key information technology system could
adversely impact our ability to conduct business.
- We rely significantly on information technology and any
inadequacy, interruption, theft or loss of data, malicious attack,
integration failure, failure to maintain the security,
confidentiality or privacy of sensitive data residing on our
systems or other security failure of that technology could harm our
ability to effectively operate our business and damage the
reputation of our brands.
- We have significant debt obligations that could adversely
affect our business and our ability to meet our obligations.
- If we pursue strategic acquisitions, divestitures or joint
ventures, we might experience operating difficulties, dilution, and
other consequences that may harm our business, financial condition,
and operating results, and we may not be able to successfully
consummate favorable transactions or successfully integrate
acquired businesses.
- Our business involves the potential for product liability
claims, labeling claims, commercial claims and other legal claims
against us, which could affect our results of operations and
financial condition and result in product recalls or
withdrawals.
- Our business is subject to increasing government regulations in
both the U.S. and abroad that could impose material costs.
- Increased focus by governmental and non-governmental
organizations, customers, consumers and shareholders on
environmental, social and governance (ESG) issues, including those
related to sustainability and climate change, may have an adverse
effect on our business, financial condition and results of
operations and damage our reputation.
- We are subject to environmental laws and regulations that may
expose us to significant liabilities and have a material adverse
effect on our results of operations and financial condition.
In addition, other risks and uncertainties not presently known
to us or that we consider immaterial could affect the accuracy of
any such forward-looking statements. The list of factors above is
illustrative, but by no means exhaustive. All forward-looking
statements should be evaluated with the understanding of their
inherent uncertainty. Additional risks and uncertainties include
those detailed from time to time in our publicly filed documents,
including those described under the heading "Risk Factors" in our
Form 10-K filed with the Securities and Exchange Commission on
November 15, 2022.
ENERGIZER HOLDINGS, INC.
CONSOLIDATED STATEMENT OF
EARNINGS
(Condensed)
(In millions, except per share data -
Unaudited)
|
|
|
For the Quarter
Ended
March 31,
|
|
For the Six Months
Ended
March 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net sales
|
$
684.1
|
|
$
685.4
|
|
$
1,449.2
|
|
$
1,531.7
|
Cost of products sold
(1)
|
430.8
|
|
447.0
|
|
897.6
|
|
981.7
|
Gross profit
|
253.3
|
|
238.4
|
|
551.6
|
|
550.0
|
Selling, general and
administrative expense (1)
|
118.3
|
|
123.4
|
|
238.7
|
|
245.5
|
Advertising and sales
promotion expense
|
18.4
|
|
19.6
|
|
71.8
|
|
71.3
|
Research and
development expense (1)
|
8.0
|
|
7.9
|
|
15.6
|
|
16.8
|
Amortization of
intangible assets
|
14.5
|
|
15.2
|
|
30.5
|
|
30.4
|
Interest
expense
|
42.0
|
|
38.3
|
|
84.9
|
|
75.3
|
Loss/(gain) on
extinguishment of debt (2)
|
0.9
|
|
—
|
|
(2.0)
|
|
—
|
Other items, net
(1)
|
0.8
|
|
6.0
|
|
(0.6)
|
|
6.2
|
Earnings before income
taxes
|
50.4
|
|
28.0
|
|
112.7
|
|
104.5
|
Income tax
provision
|
10.4
|
|
9.0
|
|
23.7
|
|
25.5
|
Net earnings
|
40.0
|
|
19.0
|
|
89.0
|
|
79.0
|
Mandatory preferred
stock dividends (3)
|
—
|
|
—
|
|
—
|
|
(4.0)
|
Net earnings
attributable to common shareholders
|
$
40.0
|
|
$
19.0
|
|
$
89.0
|
|
$
75.0
|
|
|
|
|
|
|
|
|
Basic net earnings per
common share
|
$
0.56
|
|
$
0.27
|
|
$
1.25
|
|
$
1.09
|
Diluted net earnings
per common share (3)
|
$
0.55
|
|
$
0.27
|
|
$
1.23
|
|
$
1.09
|
|
|
|
|
|
|
|
|
Weighted average shares
of common stock - Basic
|
71.5
|
|
70.4
|
|
71.4
|
|
68.6
|
Weighted average shares
of common stock - Diluted (3)
|
72.4
|
|
71.6
|
|
72.3
|
|
69.0
|
|
|
(1)
|
See the attached
Supplemental Schedules - Non-GAAP Reconciliations, which break out
the Project Momentum restructuring costs, costs from exiting the
Russian market, and Acquisition and integration related costs
included within these lines.
|
(2)
|
The Loss on the
extinguishment of debt for the quarter ended March 31, 2023 relates
to the repayment of term loan in the quarter. The Gain on
extinguishment of debt in the six months ended March 31, 2023
relates to the repurchase of outstanding Senior Notes at a discount
and repayment of term loan.
|
(3)
|
During the quarter
ended March 31, 2022, the mandatory convertible preferred shares
were converted to approximately 4.7 million common stock. For the
six months ended March 31, 2022, the conversion of the mandatory
convertible preferred shares was anti-dilutive and the mandatory
preferred stock dividends are included in the dilution calculation.
The Company no longer has any MCPS outstanding in fiscal
2023.
|
|
|
ENERGIZER HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(Condensed)
(In millions - Unaudited)
|
|
Assets
|
March 31,
2023
|
|
September
30,
2022
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
193.7
|
|
$
205.3
|
Trade receivables
|
357.2
|
|
421.7
|
Inventories
|
746.7
|
|
771.6
|
Other current
assets
|
190.5
|
|
191.4
|
Total current
assets
|
$
1,488.1
|
|
$
1,590.0
|
Property, plant and
equipment, net
|
350.3
|
|
362.1
|
Operating lease
assets
|
99.6
|
|
100.1
|
Goodwill
|
1,019.5
|
|
1,003.1
|
Other intangible
assets, net
|
1,267.3
|
|
1,295.8
|
Deferred tax
asset
|
66.7
|
|
61.8
|
Other assets
|
144.5
|
|
159.2
|
Total
assets
|
$
4,436.0
|
|
$
4,572.1
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
Current
liabilities
|
|
|
|
Current maturities of
long-term debt
|
$
12.0
|
|
$
12.0
|
Current portion of
capital leases
|
0.3
|
|
0.4
|
Notes
payable
|
2.0
|
|
6.4
|
Accounts
payable
|
329.4
|
|
329.4
|
Current operating
lease liabilities
|
16.2
|
|
15.8
|
Other current
liabilities
|
277.0
|
|
333.9
|
Total current
liabilities
|
$
636.9
|
|
$
697.9
|
Long-term
debt
|
3,414.6
|
|
3,499.4
|
Operating lease
liabilities
|
87.2
|
|
88.2
|
Deferred tax
liability
|
16.1
|
|
17.9
|
Other
liabilities
|
132.8
|
|
138.1
|
Total
liabilities
|
$
4,287.6
|
|
$
4,441.5
|
Shareholders'
equity
|
|
|
|
Common
stock
|
0.8
|
|
0.8
|
Additional paid-in
capital
|
786.4
|
|
828.7
|
Retained
losses
|
(216.0)
|
|
(304.7)
|
Treasury
stock
|
(239.2)
|
|
(248.9)
|
Accumulated other
comprehensive loss
|
(183.6)
|
|
(145.3)
|
Total shareholders'
equity
|
$
148.4
|
|
$
130.6
|
Total liabilities and
shareholders' equity
|
$
4,436.0
|
|
$
4,572.1
|
ENERGIZER HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Condensed)
(In millions - Unaudited)
|
|
|
For the Six Months
Ended March 31,
|
|
2023
|
|
2022
|
Cash Flow from
Operating Activities
|
|
|
|
Net
earnings
|
$
89.0
|
|
$
79.0
|
Non-cash integration
and restructuring charges
|
0.9
|
|
3.0
|
Depreciation and
amortization
|
62.5
|
|
58.6
|
Deferred income
taxes
|
(4.1)
|
|
0.3
|
Share-based
compensation expense
|
12.9
|
|
6.4
|
Gain on extinguishment
of debt
|
(2.0)
|
|
—
|
Non-cash charges for
exiting the Russian market
|
—
|
|
13.4
|
Non-cash items
included in income, net
|
11.9
|
|
7.8
|
Other, net
|
1.8
|
|
(3.7)
|
Changes in current
assets and liabilities used in operations
|
37.3
|
|
(273.5)
|
Net cash from/(used by)
operating activities
|
210.2
|
|
(108.7)
|
|
|
|
|
Cash Flow from
Investing Activities
|
|
|
|
Capital
expenditures
|
(18.7)
|
|
(45.9)
|
Proceeds from sale of
assets
|
0.7
|
|
0.1
|
Acquisitions, net of
cash acquired and working capital settlements
|
—
|
|
0.4
|
Net cash used by
investing activities
|
(18.0)
|
|
(45.4)
|
|
|
|
|
Cash Flow from
Financing Activities
|
|
|
|
Cash proceeds from
issuance of debt with original maturities greater than 90
days
|
—
|
|
300.0
|
Payments on debt with
maturities greater than 90 days
|
(152.9)
|
|
(7.2)
|
Net decrease in debt
with original maturities of 90 days or less
|
(5.3)
|
|
(102.2)
|
Debt issuance
costs
|
—
|
|
(7.3)
|
Dividends paid on
common stock
|
(43.3)
|
|
(42.8)
|
Dividends paid on
mandatory convertible preferred stock
|
—
|
|
(8.0)
|
Taxes paid for
withheld share-based payments
|
(1.9)
|
|
(2.3)
|
Net cash (used by)/from
financing activities
|
(203.4)
|
|
130.2
|
|
|
|
|
Effect of exchange rate
changes on cash
|
(0.4)
|
|
(1.8)
|
|
|
|
|
Net decrease in cash,
cash equivalents, and restricted cash
|
(11.6)
|
|
(25.7)
|
Cash, cash equivalents,
and restricted cash, beginning of period
|
205.3
|
|
238.9
|
Cash, cash equivalents,
and restricted cash, end of period
|
$
193.7
|
|
$
213.2
|
ENERGIZER HOLDINGS,
INC.
Reconciliation of GAAP and Non-GAAP
Measures
For the Quarter and Six Months Ended
March 31, 2023
The Company reports its financial results in accordance with
accounting principles generally accepted in the U.S.
("GAAP"). However, management believes that certain non-GAAP
financial measures provide users with additional meaningful
comparisons to the corresponding historical or future period. These
non-GAAP financial measures exclude items that are not reflective
of the Company's on-going operating performance, such as
restructuring charges, acquisition and integration costs, an
acquisition earn out, the loss/(gain) on extinguishment of debt,
and the costs of exiting the Russian market. 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/(gain) on
extinguishment of debt, other items, net, the charges related to
acquisition and integration costs, restructuring costs, an
acquisition earn out, and the costs of exiting the Russian market
have all been excluded from segment profit.
Adjusted Net Earnings and Adjusted Diluted Net Earnings Per
Common Share (EPS). These measures exclude the impact of
the costs related to acquisition and integration, restructuring
costs, an acquisition earn out, the loss/(gain) on extinguishment
of debt, and the costs of exiting the Russian market.
Non-GAAP Tax Rate. This is the tax rate when excluding
the pre-tax impact of acquisition and integration costs,
restructuring costs, an acquisition earn out, the loss/(gain) on
extinguishment of debt, and the costs of exiting the Russian
market, as well as the related tax impact for these items,
calculated utilizing the statutory rate for where the impact was
incurred.
Organic. This is the non-GAAP financial measurement
of the change in revenue or segment profit that excludes or
otherwise adjusts for the change in Russia and Argentina operations and impact of currency
from the changes in foreign currency exchange rates as defined
below:
Change in Russia Operations. The Company exited the
Russian market in the second quarter of fiscal 2022 due to the
increased global and economic and political uncertainty resulting
from the ongoing conflict between Russia and Ukraine. This adjusts for the change in
Russian sales and segment profit from the prior year post exit.
Change in Argentina Operations. The Company is
presenting separately all changes in sales and segment profit from
our Argentina affiliate due to the
designation of the economy as highly inflationary as of
July 1, 2018.
Impact of Currency. The Company evaluates
the operating performance of our Company on a currency neutral
basis. The Impact of Currency is the change in foreign currency
exchange rates year-over-year on reported results, which is
calculated by comparing the value of current year foreign
operations at the current period USD exchange rate versus the value
of current year foreign operations at the prior period USD exchange
rate. The impact of currency also includes gains/(losses) of
currency hedging programs, and it excludes hyper-inflationary
markets.
Adjusted Comparisons. Detail for adjusted gross
profit, adjusted gross margin, adjusted SG&A and adjusted
SG&A as percent of sales and adjusted Other items, net are also
supplemental non-GAAP measure disclosures. These measures exclude
the impact of costs related to acquisition and integration,
restructuring charges, an acquisition earn out, and the costs of
exiting the Russian market.
EBITDA and Adjusted EBITDA. EBITDA is defined as net
earnings before income tax provision, interest, the loss/(gain) on
extinguishment of debt, and depreciation and amortization.
Adjusted EBITDA further excludes the impact of the costs
related to restructuring, exiting the Russian market, gains on
finance lease termination, the costs of the flooding of our
manufacturing facility in Brazil,
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 - Currency Neutral
Results
For the Quarter and Six Months Ended March 31,
2023
(In millions, except per share data -
Unaudited)
|
|
|
For the Quarter
Ended
|
|
Prior
Quarter
Ended
|
|
|
|
|
March 31,
2023
|
|
|
%
Change
|
%
Change
|
|
As
Reported
|
Impact of
Currency(1)
|
Currency
Neutral
|
|
March 31,
2022
|
|
As Reported
Basis
|
Currency
Neutral
Basis
|
As Reported under
GAAP
|
|
|
|
|
|
|
|
Diluted net
earnings
per common share
|
$
0.55
|
$
(0.11)
|
$
0.66
|
|
$
0.27
|
|
103.7 %
|
144.4 %
|
Net Earnings
|
$
40.0
|
$
(8.3)
|
$
48.3
|
|
$
19.0
|
|
110.5 %
|
154.2 %
|
|
|
|
|
|
|
|
|
|
As Adjusted
(non-GAAP)(2)
|
|
|
|
|
|
|
|
Adjusted diluted net
earnings
per common share
|
$
0.64
|
$
(0.11)
|
$
0.75
|
|
$
0.47
|
|
36.2 %
|
59.6 %
|
Adjusted
EBITDA
|
$
139.5
|
$
(10.4)
|
$
149.9
|
|
$
114.6
|
|
21.7 %
|
30.8 %
|
|
For the Six Months
Ended
|
|
Prior Six
Months
Ended
|
|
|
|
|
March 31,
2023
|
|
|
%
Change
|
%
Change
|
|
As
Reported
|
Impact of
Currency(1)
|
Currency
Neutral
|
|
March 31,
2022
|
|
As Reported
Basis
|
Currency
Neutral
Basis
|
As Reported under
GAAP
|
|
|
|
|
|
|
|
Diluted net
earnings
per common share
|
$
1.23
|
$
(0.22)
|
$
1.45
|
|
$
1.09
|
|
12.8 %
|
33.0 %
|
Net Earnings
|
$
89.0
|
$
(16.2)
|
$
105.2
|
|
$
79.0
|
|
12.7 %
|
33.2 %
|
|
|
|
|
|
|
|
|
|
As Adjusted
(non-GAAP)(2)
|
|
|
|
|
|
|
|
Adjusted diluted net
earnings
per common share
|
$
1.36
|
$
(0.22)
|
$
1.58
|
|
$
1.49
|
|
(8.7) %
|
6.0 %
|
Adjusted
EBITDA
|
$
285.1
|
$
(20.4)
|
$
305.5
|
|
$
276.4
|
|
3.1 %
|
10.5 %
|
|
|
(1)
|
The Impact of Currency
is the change in foreign currency exchange rates year-over-year on
reported results, which is calculated by comparing the value of
current year foreign operations at the current period USD exchange
rate versus the value of current year foreign operations at the
prior period USD exchange rate. The impact of currency also
includes gains/(losses) of currency hedging programs, and it
excludes hyper-inflationary markets.
|
(2)
|
See supplemental
schedules - Non-GAAP Reconciliations for full reconciliations of
the Company's non-GAAP adjusted amounts.
|
Energizer Holdings,
Inc.
Supplemental Schedules - Segment Information
For the Quarter and Six Months Ended March 31, 2023
(In millions -
Unaudited)
Operations for Energizer are managed via two product segments:
Batteries & Lights and Auto Care. Energizer's operating model
includes a combination of standalone and shared business functions
between the product segments, varying by country and region of the
world. Shared functions include the sales and marketing functions,
as well as human resources, IT and finance shared service costs.
Energizer applies a fully allocated cost basis, in which shared
business functions are allocated between segments. Such allocations
are estimates, and may not represent the costs of such services if
performed on a standalone basis. Segment sales and profitability,
as well as the reconciliation to earnings before income taxes for
the quarters and six months ended March 31, 2023 and 2022,
respectively, are presented below:
|
Quarters Ended March
31,
|
|
Six Months Ended
March 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net
Sales
|
|
|
|
|
|
|
|
Batteries &
Lights
|
$
505.9
|
|
$
516.5
|
|
$
1,177.5
|
|
$
1,256.7
|
Auto Care
|
178.2
|
|
168.9
|
|
271.7
|
|
275.0
|
Total net
sales
|
$
684.1
|
|
$
685.4
|
|
$
1,449.2
|
|
$
1,531.7
|
Segment
Profit
|
|
|
|
|
|
|
|
Batteries &
Lights
|
114.5
|
|
95.3
|
|
252.8
|
|
263.7
|
Auto Care
|
29.4
|
|
24.3
|
|
40.0
|
|
24.1
|
Total segment
profit
|
$
143.9
|
|
$
119.6
|
|
$
292.8
|
|
$
287.8
|
General corporate and other expenses (1)
|
(27.8)
|
|
(25.6)
|
|
(53.2)
|
|
(47.3)
|
Amortization of intangible assets
|
(14.5)
|
|
(15.2)
|
|
(30.5)
|
|
(30.4)
|
Project Momentum restructuring costs (2)
|
(7.5)
|
|
—
|
|
(14.1)
|
|
—
|
Acquisition and integration costs (2)
|
—
|
|
—
|
|
—
|
|
(16.5)
|
Acquisition earn out (3)
|
—
|
|
—
|
|
—
|
|
(1.1)
|
Interest expense
|
(42.0)
|
|
(38.3)
|
|
(84.9)
|
|
(75.3)
|
(Loss)/gain on extinguishment of debt
|
(0.9)
|
|
—
|
|
2.0
|
|
—
|
Exit of Russian market
(4)
|
—
|
|
(14.0)
|
|
—
|
|
(14.0)
|
Other items, net - Adjusted (5)
|
(0.8)
|
|
1.5
|
|
0.6
|
|
1.3
|
Total earnings
before income taxes
|
$
50.4
|
|
$
28.0
|
|
$
112.7
|
|
$
104.5
|
|
|
(1)
|
Recorded in SG&A on
the Consolidated (Condensed) Statement of Earnings.
|
(2)
|
See the Supplemental
Schedules - Non-GAAP Reconciliations for the line items where these
charges are recorded in the Consolidated (Condensed) Statement of
Earnings.
|
(3)
|
This represents the
earn out achieved through March 31, 2022 under the incentive
agreements entered into with the fiscal 2021 acquisition of a
formulations company, and is recorded in SG&A on the
Consolidated (Condensed) Statement of Earnings.
|
(4)
|
These are the costs
associated with the exit of the Russian market during the second
quarter of fiscal 2022. See the Supplemental Non-GAAP
reconciliation for the line items where these charges are recorded
in the Consolidated (Condensed) Statement of Earnings.
|
(5)
|
See the Supplemental
Non-GAAP reconciliation for the Other items, net reconciliation
between the reported and adjusted balances.
|
Supplemental segment information is presented below for
depreciation and amortization:
|
Quarters Ended March
31,
|
|
Six Months Ended
March 31,
|
Depreciation and
amortization
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Batteries &
Lights
|
$
13.1
|
|
$
11.7
|
|
$
26.5
|
|
$
23.9
|
Auto Care
|
2.8
|
|
2.3
|
|
5.5
|
|
4.3
|
Total segment
depreciation and amortization
|
$
15.9
|
|
$
14.0
|
|
$
32.0
|
|
$
28.2
|
Amortization of
intangible assets
|
14.5
|
|
15.2
|
|
30.5
|
|
30.4
|
Total depreciation
and amortization
|
$
30.4
|
|
$
29.2
|
|
$
62.5
|
|
$
58.6
|
Energizer Holdings, Inc.
Supplemental Schedules - GAAP EPS to Adjusted EPS
Reconciliation
For the Quarter and Six Months Ended March 31,
2023
(In millions, except per share data -
Unaudited)
|
|
|
For the Quarters
Ended
March 31,
|
|
For the Six Months
Ended
March 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net earnings
attributable to common shareholders
|
$
40.0
|
|
$
19.0
|
|
$
89.0
|
|
$
75.0
|
Mandatory preferred
stock dividends
|
—
|
|
—
|
|
—
|
|
(4.0)
|
Net earnings
|
40.0
|
|
19.0
|
|
89.0
|
|
79.0
|
Pre-tax
adjustments
|
|
|
|
|
|
|
|
Project Momentum
restructuring costs (1)
|
7.5
|
|
—
|
|
14.1
|
|
—
|
Acquisition and
integration (1)
|
—
|
|
—
|
|
—
|
|
16.5
|
Acquisition earn
out
|
—
|
|
—
|
|
—
|
|
1.1
|
Loss/(gain) on
extinguishment of debt
|
0.9
|
|
—
|
|
(2.0)
|
|
—
|
Exit of Russian market
(1)
|
—
|
|
14.0
|
|
—
|
|
14.0
|
Total adjustments,
pre-tax
|
$
8.4
|
|
$
14.0
|
|
$
12.1
|
|
$
31.6
|
Total adjustments,
after tax
|
$
6.5
|
|
$
14.3
|
|
$
9.3
|
|
$
28.1
|
Adjusted net earnings
(2)
|
$
46.5
|
|
$
33.3
|
|
$
98.3
|
|
$
107.1
|
Mandatory preferred
stock dividends
|
—
|
|
—
|
|
—
|
|
(4.0)
|
Adjusted net earnings
attributable to common shareholders
|
$
46.5
|
|
$
33.3
|
|
$
98.3
|
|
$
103.1
|
|
|
|
|
|
|
|
|
Diluted net earnings
per common share
|
$
0.55
|
|
$
0.27
|
|
$
1.23
|
|
$
1.09
|
Adjustments
|
|
|
|
|
|
|
|
Project Momentum
restructuring costs
|
0.08
|
|
—
|
|
0.15
|
|
—
|
Acquisition and
integration
|
—
|
|
—
|
|
—
|
|
0.18
|
Acquisition earn
out
|
—
|
|
—
|
|
—
|
|
0.01
|
Loss/(gain) on
extinguishment of debt
|
0.01
|
|
—
|
|
(0.02)
|
|
—
|
Exit of Russian
market
|
—
|
|
0.20
|
|
—
|
|
0.20
|
Impact for diluted
share calculation (3)
|
—
|
|
—
|
|
—
|
|
0.01
|
Adjusted diluted net
earnings per diluted common share (3)
|
$
0.64
|
|
$
0.47
|
|
$
1.36
|
|
$
1.49
|
Weighted average shares
of common stock - Diluted
|
72.4
|
|
71.6
|
|
72.3
|
|
69.0
|
Adjusted Weighted
average shares of common stock - Diluted (3)
|
72.4
|
|
71.6
|
|
72.3
|
|
71.8
|
|
|
(1)
|
See Supplemental
Schedules - Non-GAAP Reconciliations for the line items where these
costs are recorded on the unaudited Consolidated (Condensed)
Statement of Earnings.
|
(2)
|
The effective tax rate
for the Adjusted - Non-GAAP Earnings and Diluted EPS for the
quarters ended March 31, 2023 and 2022 was 20.9% and 20.7%,
respectively, and for the six months ended March 31, 2023 and 2022
was 21.2% and 21.3%, respectively, as calculated utilizing the
statutory rate for where the costs were incurred.
|
(3)
|
During the quarter
ended March 31, 2022, the mandatory convertible preferred shares
were converted to approximately 4.7 million common stock. For the
six months ended March 31, 2022, the full conversion was dilutive
and the mandatory preferred stock dividends are excluded from net
earnings in the Adjusted dilution calculation.
|
Energizer Holdings,
Inc.
Supplemental
Schedules - Segment Sales
For the Quarter and
Six Months Ended March 31, 2023
(In millions -
Unaudited)
|
|
Net
sales
|
Q1'23
|
|
% Chg
|
|
Q2'23
|
|
% Chg
|
|
Six Months
'23
|
|
% Chg
|
Batteries &
Lights
|
|
|
|
|
|
|
|
|
|
|
|
Net sales - prior
year
|
$
740.2
|
|
|
|
$
516.5
|
|
|
|
$
1,256.7
|
|
|
Organic
|
(34.8)
|
|
(4.7) %
|
|
7.3
|
|
1.4 %
|
|
(27.5)
|
|
(2.2) %
|
Change in Argentina
Operations
|
1.3
|
|
0.2 %
|
|
0.5
|
|
0.1 %
|
|
1.8
|
|
0.1 %
|
Change in Russia
Operations
|
(7.3)
|
|
(1.0) %
|
|
(5.0)
|
|
(1.0) %
|
|
(12.3)
|
|
(1.0) %
|
Impact of
currency
|
(27.8)
|
|
(3.8) %
|
|
(13.4)
|
|
(2.6) %
|
|
(41.2)
|
|
(3.2) %
|
Net sales - current
year
|
$
671.6
|
|
(9.3) %
|
|
$
505.9
|
|
(2.1) %
|
|
$
1,177.5
|
|
(6.3) %
|
|
|
|
|
|
|
|
|
|
|
|
|
Auto
Care
|
|
|
|
|
|
|
|
|
|
|
|
Net sales - prior
year
|
$
106.1
|
|
|
|
$
168.9
|
|
|
|
$
275.0
|
|
|
Organic
|
(10.8)
|
|
(10.2) %
|
|
10.2
|
|
6.0 %
|
|
(0.6)
|
|
(0.2) %
|
Change in Argentina
Operations
|
—
|
|
— %
|
|
0.2
|
|
0.1 %
|
|
0.2
|
|
0.1 %
|
Change in Russia
Operations
|
(0.2)
|
|
(0.2) %
|
|
(0.1)
|
|
(0.1) %
|
|
(0.3)
|
|
(0.1) %
|
Impact of
currency
|
(1.6)
|
|
(1.5) %
|
|
(1.0)
|
|
(0.5) %
|
|
(2.6)
|
|
(1.0) %
|
Net sales - current
year
|
$
93.5
|
|
(11.9) %
|
|
$
178.2
|
|
5.5 %
|
|
$
271.7
|
|
(1.2) %
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
Net sales - prior
year
|
$
846.3
|
|
|
|
$
685.4
|
|
|
|
$
1,531.7
|
|
|
Organic
|
(45.6)
|
|
(5.4) %
|
|
17.5
|
|
2.6 %
|
|
(28.1)
|
|
(1.8) %
|
Change in Argentina
Operations
|
1.3
|
|
0.2 %
|
|
0.7
|
|
0.1 %
|
|
2.0
|
|
0.1 %
|
Change in Russia
Operations
|
(7.5)
|
|
(0.9) %
|
|
(5.1)
|
|
(0.7) %
|
|
(12.6)
|
|
(0.8) %
|
Impact of
currency
|
(29.4)
|
|
(3.5) %
|
|
(14.4)
|
|
(2.2) %
|
|
(43.8)
|
|
(2.9) %
|
Net sales - current
year
|
$
765.1
|
|
(9.6) %
|
|
$
684.1
|
|
(0.2) %
|
|
$
1,449.2
|
|
(5.4) %
|
Energizer Holdings,
Inc.
Supplemental
Schedules - Segment Profit
For the Quarter and
Six Months Ended March 31, 2023
(In millions -
Unaudited)
|
|
Segment
profit
|
Q1'23
|
|
% Chg
|
|
Q2'23
|
|
% Chg
|
|
Six Months
'23
|
|
% Chg
|
Batteries &
Lights
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit - prior
year
|
$
168.4
|
|
|
|
$
95.3
|
|
|
|
$
263.7
|
|
|
Organic
|
(15.6)
|
|
(9.3) %
|
|
27.5
|
|
28.9 %
|
|
11.9
|
|
4.5 %
|
Change in Argentina
Operations
|
—
|
|
— %
|
|
0.7
|
|
0.7 %
|
|
0.7
|
|
0.3 %
|
Change in Russia
Operations
|
(0.6)
|
|
(0.4) %
|
|
(0.6)
|
|
(0.6) %
|
|
(1.2)
|
|
(0.5) %
|
Impact of
currency
|
(13.9)
|
|
(8.2) %
|
|
(8.4)
|
|
(8.9) %
|
|
(22.3)
|
|
(8.4) %
|
Segment profit -
current year
|
$
138.3
|
|
(17.9) %
|
|
$
114.5
|
|
20.1 %
|
|
$
252.8
|
|
(4.1) %
|
|
|
|
|
|
|
|
|
|
|
|
|
Auto
Care
|
|
|
|
|
|
|
|
|
|
|
|
Segment (loss)/profit -
prior year
|
$
(0.2)
|
|
|
|
$
24.3
|
|
|
|
$
24.1
|
|
|
Organic
|
12.3
|
|
NM *
|
|
5.6
|
|
23.0 %
|
|
17.9
|
|
74.3 %
|
Change in Argentina
Operations
|
(0.1)
|
|
NM *
|
|
0.1
|
|
0.4 %
|
|
—
|
|
— %
|
Impact of
currency
|
(1.4)
|
|
NM *
|
|
(0.6)
|
|
(2.4) %
|
|
(2.0)
|
|
(8.3) %
|
Segment profit -
current year
|
$
10.6
|
|
NM *
|
|
$
29.4
|
|
21.0 %
|
|
$
40.0
|
|
66.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Segment
Profit
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit - prior
year
|
$
168.2
|
|
|
|
$
119.6
|
|
|
|
$
287.8
|
|
|
Organic
|
(3.3)
|
|
(2.0) %
|
|
33.1
|
|
27.7 %
|
|
29.8
|
|
10.4 %
|
Change in Argentina
Operations
|
(0.1)
|
|
(0.1) %
|
|
0.8
|
|
0.7 %
|
|
0.7
|
|
0.2 %
|
Change in Russia
Operations
|
(0.6)
|
|
(0.4) %
|
|
(0.6)
|
|
(0.5) %
|
|
(1.2)
|
|
(0.4) %
|
Impact of
currency
|
(15.3)
|
|
(9.0) %
|
|
(9.0)
|
|
(7.6) %
|
|
(24.3)
|
|
(8.5) %
|
Segment profit -
current year
|
$
148.9
|
|
(11.5) %
|
|
$
143.9
|
|
20.3 %
|
|
$
292.8
|
|
1.7 %
|
|
NM - These percentage
calculations are not meaningful.
|
Energizer Holdings,
Inc.
Supplemental
Schedules - Non-GAAP Reconciliations
For the Quarter and
Six Months Ended March 31, 2023
(In millions -
Unaudited)
|
|
Gross
profit
|
Q1'23
|
Q2'23
|
|
Q1'22
|
Q2'22
|
|
Q2'23
YTD
|
|
Q2'22
YTD
|
Net sales
|
$ 765.1
|
$ 684.1
|
|
$ 846.3
|
$ 685.4
|
|
$ 1,449.2
|
|
$ 1,531.7
|
Reported Cost of
products sold
|
466.8
|
430.8
|
|
534.7
|
447.0
|
|
897.6
|
|
981.7
|
Gross
profit
|
$ 298.3
|
$ 253.3
|
|
$ 311.6
|
$ 238.4
|
|
$ 551.6
|
|
$ 550.0
|
Gross
margin
|
39.0 %
|
37.0 %
|
|
36.8 %
|
34.8 %
|
|
38.1 %
|
|
35.9 %
|
Project Momentum
restructuring costs
|
0.3
|
5.7
|
|
—
|
—
|
|
6.0
|
|
—
|
Acquisition and
integration costs
|
—
|
—
|
|
6.0
|
—
|
|
—
|
|
6.0
|
Exit of Russian
market
|
—
|
|
|
—
|
0.7
|
|
—
|
|
0.7
|
Cost of products sold -
adjusted
|
466.5
|
425.1
|
|
528.7
|
446.3
|
|
891.6
|
|
975.0
|
Adjusted Gross
profit
|
$ 298.6
|
$ 259.0
|
|
$ 317.6
|
$ 239.1
|
|
$ 557.6
|
|
$ 556.7
|
Adjusted Gross
margin
|
39.0 %
|
37.9 %
|
|
37.5 %
|
34.9 %
|
|
38.5 %
|
|
36.3 %
|
|
|
|
|
|
|
|
|
|
|
SG&A
|
Q1'23
|
Q2'23
|
|
Q1'22
|
Q2'22
|
|
Q2'23
YTD
|
|
Q2'22
YTD
|
Reported
SG&A
|
$ 120.4
|
$ 118.3
|
|
$ 122.1
|
$ 123.4
|
|
$ 238.7
|
|
$ 245.5
|
Reported SG&A %
of Net sales
|
15.7 %
|
17.3 %
|
|
14.4 %
|
18.0 %
|
|
16.5 %
|
|
16.0 %
|
Adjustments
|
|
|
|
|
|
|
|
|
|
Project Momentum
restructuring costs
|
6.3
|
1.8
|
|
—
|
—
|
|
8.1
|
|
—
|
Acquisition and
integration costs
|
—
|
—
|
|
9.4
|
—
|
|
—
|
|
9.4
|
Exit of Russian
Market
|
—
|
—
|
|
—
|
5.8
|
|
—
|
|
5.8
|
Acquisition earn
out
|
—
|
|
|
1.1
|
—
|
|
—
|
|
1.1
|
SG&A Adjusted -
subtotal
|
$ 114.1
|
$ 116.5
|
|
$ 111.6
|
$ 117.6
|
|
$ 230.6
|
|
$ 229.2
|
SG&A Adjusted %
of Net sales
|
14.9 %
|
17.0 %
|
|
13.2 %
|
17.2 %
|
|
15.9 %
|
|
15.0 %
|
|
|
|
|
|
|
|
|
|
|
Other items,
net
|
Q1'23
|
Q2'23
|
|
Q1'22
|
Q2'22
|
|
Q2'23
YTD
|
|
Q2'22
YTD
|
Interest
income
|
$
(0.2)
|
$
(1.1)
|
|
$
(0.2)
|
$
(0.3)
|
|
$
(1.3)
|
|
$
(0.5)
|
Foreign currency
exchange (gain)/loss
|
(1.0)
|
4.5
|
|
1.3
|
(0.1)
|
|
3.5
|
|
1.2
|
Pension cost/(benefit)
other than service costs
|
0.7
|
0.6
|
|
(1.1)
|
(1.1)
|
|
1.3
|
|
(2.2)
|
Other
|
(0.9)
|
(3.2)
|
|
0.2
|
—
|
|
(4.1)
|
|
0.2
|
Other items, net -
Adjusted
|
$
(1.4)
|
$
0.8
|
|
$
0.2
|
$
(1.5)
|
|
$
(0.6)
|
|
$
(1.3)
|
Exit of Russian
market
|
—
|
—
|
|
—
|
7.5
|
|
—
|
|
7.5
|
Total Other items,
net
|
(1.4)
|
$
0.8
|
|
0.2
|
$
6.0
|
|
$
(0.6)
|
|
$
6.2
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration
|
Q1'23
|
Q2'23
|
|
Q1'22
|
Q2'22
|
|
Q2'23
YTD
|
|
Q2'22
YTD
|
Cost of products
sold
|
$
—
|
$
—
|
|
$
6.0
|
$
—
|
|
$
—
|
|
$
6.0
|
SG&A
|
—
|
—
|
|
9.4
|
—
|
|
—
|
|
9.4
|
Research and
development
|
—
|
—
|
|
1.1
|
—
|
|
—
|
|
1.1
|
Acquisition and
integration related items
|
$
—
|
$
—
|
|
$
16.5
|
$
15.0
|
|
$
—
|
|
$
31.5
|
Energizer Holdings,
Inc.
Supplemental
Schedules - Non-GAAP Reconciliations cont.
For the Quarter and
Six Months Ended March 31, 2023
(In millions -
Unaudited)
|
|
|
Q2'23
|
|
Q1'23
|
|
Q4'22
|
|
Q3'22
|
|
LTM
3/31/23 (1)
|
|
Q2'22
|
Net
earnings/(loss)
|
$ 40.0
|
|
$ 49.0
|
|
$ (362.9)
|
|
$ 52.4
|
|
$
(221.5)
|
|
$ 19.0
|
Income tax
provision/(benefit)
|
10.4
|
|
13.3
|
|
(112.2)
|
|
12.7
|
|
(75.8)
|
|
9.0
|
Earnings/(loss)
before income taxes
|
50.4
|
|
62.3
|
|
(475.1)
|
|
65.1
|
|
(297.3)
|
|
28.0
|
Interest
expense
|
42.0
|
|
42.9
|
|
42.0
|
|
41.1
|
|
168.0
|
|
38.3
|
Loss/(gain) on
extinguishment of debt
|
0.9
|
|
(2.9)
|
|
—
|
|
—
|
|
(2.0)
|
|
—
|
Depreciation &
Amortization
|
30.4
|
|
32.1
|
|
32.6
|
|
30.4
|
|
125.5
|
|
29.2
|
EBITDA
|
$
123.7
|
|
$
134.4
|
|
$
(400.5)
|
|
$
136.6
|
|
$
(5.8)
|
|
$ 95.5
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Project Momentum
restructuring costs
|
7.5
|
|
6.6
|
|
0.9
|
|
—
|
|
15.0
|
|
—
|
Exit of Russian
market
|
—
|
|
—
|
|
0.6
|
|
—
|
|
0.6
|
|
14.0
|
Gain on finance lease
termination
|
—
|
|
—
|
|
—
|
|
(4.5)
|
|
(4.5)
|
|
—
|
Brazil flood damage,
net of insurance proceeds
|
—
|
|
—
|
|
(0.2)
|
|
9.9
|
|
9.7
|
|
—
|
Impairment of goodwill
& intangible assets
|
—
|
|
—
|
|
541.9
|
|
—
|
|
541.9
|
|
—
|
Share-based
payments
|
8.3
|
|
4.6
|
|
3.3
|
|
3.5
|
|
19.7
|
|
5.1
|
Adjusted
EBITDA
|
$
139.5
|
|
$
145.6
|
|
$
146.0
|
|
$
145.5
|
|
$
576.6
|
|
$
114.6
|
|
|
(1)
|
LTM defined as the
latest 12 months for the period ending March 31, 2023.
|
Free Cash
Flow
|
3/31/2023
|
Net cash from operating
activities
|
$
210.2
|
Capital
expenditures
|
(18.7)
|
Proceeds from sale of
assets
|
0.7
|
Free Cash Flow for
the six months ended March 31, 2023
|
$
192.2
|
Net
Debt
|
3/31/2023
|
|
9/30/2022
|
Current maturities of
long-term debt
|
$
12.0
|
|
$
12.0
|
Current portion of
finance leases
|
0.3
|
|
0.4
|
Notes
payable
|
2.0
|
|
6.4
|
Long-term
debt
|
3,414.6
|
|
3,499.4
|
Total debt per the
balance sheet
|
$
3,428.9
|
|
$
3,518.2
|
Cash and cash
equivalents
|
193.7
|
|
205.3
|
Net
Debt
|
$
3,235.2
|
|
$
3,312.9
|
Energizer Holdings,
Inc.
Supplemental
Schedules - Non-GAAP Reconciliations cont.
FY 2023
Outlook
(In millions -
Unaudited)
|
|
Fiscal Year 2023
Outlook Reconciliation - Adjusted net earnings and diluted net
earnings per common share -(EPS)
|
(in millions, except
per share data)
|
Adjusted Net
earnings
|
|
Adjusted
EPS
|
Fiscal Year 2023 - GAAP
Outlook
|
$192
|
to
|
$222
|
|
$2.65
|
to
|
$3.06
|
Impacts:
|
|
|
|
|
|
|
|
Project Momentum
restructuring costs
|
27
|
to
|
19
|
|
0.37
|
to
|
0.26
|
Loss/(gain) on
extinguishment of debt
|
(2)
|
|
(2)
|
|
(0.02)
|
to
|
(0.02)
|
Fiscal Year 2023 -
Adjusted Outlook
|
$217
|
to
|
$239
|
|
$3.00
|
to
|
$3.30
|
Fiscal Year 2023
Outlook Reconciliation - Adjusted EBITDA
|
(in millions, except
per share data)
|
|
|
|
Net earnings
|
$192
|
to
|
$222
|
Income tax
provision
|
26
|
to
|
55
|
Earnings before income
taxes
|
$218
|
to
|
$277
|
Interest
expense
|
172
|
to
|
168
|
Loss/(gain) on
extinguishment of debt
|
(2)
|
to
|
(2)
|
Amortization
|
62
|
to
|
58
|
Depreciation
|
70
|
to
|
64
|
EBITDA
|
$520
|
to
|
$565
|
|
|
|
|
Adjustments:
|
|
|
|
Project Momentum
restructuring costs
|
35
|
to
|
25
|
Share-based
payments
|
30
|
to
|
25
|
Adjusted
EBITDA
|
$585
|
to
|
$615
|
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SOURCE Energizer Holdings, Inc.