RIPLE CLEAN O Safe Harbor Disclosure F I R S T Q U A R T E R F Y 2 4 R E S U L T S I. Performance Update F I R S T Q U A R T E R F Y 2 4 R E S U L T S Business Momentum Continued in First Quarter FY 24 ◼ Continued strong performance enabled by benefits of leading & diversified portfolio 50 rac Prestige Consumer HEALTHCARE ULTIMATE All adjusted GAAP numbers presented are footnoted and reconciled to their closest GAAP measurement in the attached reconciliation schedule or in our August 3, 2023 earnings releas ...

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited condensed consolidated financial statements for Q2 2023, showing slight net income decrease and debt reduction [Condensed Consolidated Statements of Income and Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) Revenues slightly increased to $279.3M, but net income declined to $53.3M due to higher cost of sales | Financial Metric | Three Months Ended June 30, 2023 (in millions) | Three Months Ended June 30, 2022 (in millions) | | :--- | :--- | :--- | | **Total Revenues** | $279.3 | $277.1 | | **Gross Profit** | $154.7 | $160.1 | | **Operating Income** | $85.2 | $87.0 | | **Net Income** | $53.3 | $55.3 | | **Diluted EPS** | $1.06 | $1.09 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly decreased to $3.35B, long-term debt reduced to $1.32B, and equity rose to $1.48B | Balance Sheet Item | June 30, 2023 (in millions) | March 31, 2023 (in millions) | | :--- | :--- | :--- | | **Total Current Assets** | $391.8 | $391.7 | | **Total Assets** | $3,345.6 | $3,353.7 | | **Long-term debt, net** | $1,316.7 | $1,345.8 | | **Total Liabilities** | $1,865.3 | $1,906.6 | | **Total Stockholders' Equity** | $1,480.3 | $1,447.1 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow decreased to $48.1M, with $54.2M used in financing for debt repayment and share repurchases | Cash Flow Activity | Three Months Ended June 30, 2023 (in millions) | Three Months Ended June 30, 2022 (in millions) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $48.1 | $58.2 | | **Net cash provided by (used in) investing activities** | $2.3 | $(1.0) | | **Net cash used in financing activities** | $(54.2) | $(47.4) | | **Net change in cash and cash equivalents** | $(3.9) | $8.7 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Details accounting policies, segment performance, debt, and customer concentration, noting economic uncertainties and major customer revenue - The company faces economic uncertainty from supply chain constraints, rising interest rates, and inflation, which could affect product demand, prices, and supply. To date, these conditions have not had a material negative impact on operations or liquidity[23](index=23&type=chunk)[24](index=24&type=chunk) - Significant revenue concentration exists with top customers. For the three months ended June 30, 2023, Walmart accounted for approximately **20.8%** of gross revenues, and Amazon accounted for **11.0%**[63](index=63&type=chunk) Segment Performance (Q1 FY2024) | Segment Performance (Q1 FY2024) | North American OTC | International OTC | Consolidated | | :--- | :--- | :--- | :--- | | **Total Revenues** | $246.1M | $33.2M | $279.3M | | **Contribution Margin** | $104.7M | $13.8M | $118.4M | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 FY2024 results, noting revenue growth, gross margin contraction, and liquidity for debt and share repurchases [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Total revenues increased 0.8% to $279.3M, but gross profit fell 3.4% to $154.7M due to higher supply chain costs Revenue by Segment (Q1 FY2024 vs Q1 FY2023) | Revenue by Segment (Q1 FY2024 vs Q1 FY2023) | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | **North American OTC Healthcare** | $246.1M | $242.5M | +1.5% | | **International OTC Healthcare** | $33.2M | $34.5M | -4.0% | | **Total Consolidated** | $279.3M | $277.1M | +0.8% | - Gross profit margin decreased to **55.4%** from **57.8%** in the prior year, primarily due to increased supply chain costs and unfavorable product mix[85](index=85&type=chunk) - Interest expense increased to **$17.7 million** from **$15.3 million** YoY, as the average cost of borrowing rose to **5.3%** from **4.1%**, despite a decrease in average indebtedness[94](index=94&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) Operating cash flow decreased to $48.1M, used for $30M debt repayment and $25M share repurchases, with $1.3B total debt Cash Flow Summary (Q1 FY2024 vs Q1 FY2023) | Cash Flow Summary (Q1 FY2024 vs Q1 FY2023) | 2023 | 2022 | | :--- | :--- | :--- | | **Cash from Operating Activities** | $48.1M | $58.2M | | **Cash from Investing Activities** | $2.3M | $(1.0)M | | **Cash used in Financing Activities** | $(54.2)M | $(47.4)M | | **Net Change in Cash** | $(3.9)M | $8.7M | - As of June 30, 2023, total outstanding indebtedness was **$1.3 billion**, consisting of senior notes and term loans. The company had no outstanding balance on its **$174.9 million** ABL Revolver[101](index=101&type=chunk)[105](index=105&type=chunk) - The company was in compliance with all financial covenants, including leverage ratio, interest coverage ratio, and fixed charge ratio requirements[105](index=105&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate risk on $330M variable-rate debt and foreign currency risk on 10.6% of revenues - The company has **$330.0 million** of variable-rate debt. A hypothetical **1.0%** increase in interest rates would adversely impact pre-tax earnings by approximately **$0.9 million** for the quarter[116](index=116&type=chunk)[117](index=117&type=chunk) - Approximately **10.6%** of gross revenues were denominated in foreign currencies. A hypothetical **10.0%** adverse change in foreign currency exchange rates would impact pre-tax income by approximately **$1.7 million** for the quarter[118](index=118&type=chunk)[119](index=119&type=chunk) [Item 4. Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of June 30, 2023, with no material changes to internal controls - Based on an evaluation as of June 30, 2023, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[120](index=120&type=chunk) - No changes occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[121](index=121&type=chunk) [PART II. OTHER INFORMATION](index=31&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1A. Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors from the Annual Report on Form 10-K for FY2023 - The risk factors described in the Annual Report on Form 10-K for the year ended March 31, 2023, have not materially changed during the period covered by this quarterly report[122](index=122&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 515,432 shares, completing a $25M program and satisfying tax withholding obligations Share Repurchase Summary | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | **May 2023** | 363,138 | $59.88 | | **June 2023** | 152,294 | $57.54 | | **Total** | 515,432 | $59.19 | - The company completed its **$25.0 million** share repurchase program announced in May 2023 by repurchasing **426,479** shares[126](index=126&type=chunk) [Item 5. Other Information](index=33&type=section&id=Item%205.%20Other%20Information) Details 2023 Annual Meeting voting results, including director elections, auditor ratification, and executive compensation approval - At the Annual Meeting on August 1, 2023, all seven director nominees were elected to the Board[127](index=127&type=chunk) - Stockholders ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for fiscal year 2024[128](index=128&type=chunk) - A non-binding resolution to approve named executive officer compensation was passed, and stockholders advised for future advisory votes on compensation to be held every one year[129](index=129&type=chunk)[130](index=130&type=chunk) [Item 6. Exhibits](index=35&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed with Form 10-Q, including Term Loan Credit Agreement amendment and officer certifications - Key exhibits filed include Amendment No. 7 to the Term Loan Credit Agreement and officer certifications pursuant to SEC rules[132](index=132&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ______ TO ______ Commission File Number: 001-32433 (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 2023 PRESTIGE CONSUMER HEALTHCARE INC. (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdiction of Inco ...

Financial Data and Key Metrics Changes - Q3 2023 revenues were $276 million, representing a 2% organic growth compared to the prior year, driven by strong performance in the cough and cold category and international segment [54][59] - Diluted EPS for Q3 was $1.4, with a year-to-date diluted EPS of $3.14, slightly down from $3.15 in the prior year due to gross margin compression [60][69] - Gross margin for the first nine months was 56%, a decline of 170 basis points from the previous year's adjusted gross margin of 57.7% [89][135] Business Line Data and Key Metrics Changes - The cough and cold category saw over 20% growth year-to-date, while the women's health and eye & ear care categories experienced declines [70][88] - International segment revenues increased by over 25% in Q3, excluding foreign exchange effects, with strong performance across various regions and product categories [73] Market Data and Key Metrics Changes - North American revenues were down approximately 1% year-over-year, with significant increases in cough and cold and gastrointestinal categories offset by declines in women's health and eye & ear care [88] - E-commerce now accounts for about 15% of total sales, continuing to grow in the high single digits [103] Company Strategy and Development Direction - The company aims to maintain a consistent pipeline of new products and innovation, with expectations for continued growth in fiscal 2024 [107] - Strategic investments in inventory are being made to better align with retail customer service requirements and to mitigate supply chain disruptions [29][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's positioning and consumption trends, anticipating continued growth in fiscal 2024 after two record years [16][68] - The company is adapting to a dynamic supply chain environment, focusing on building inventory buffers to support future growth opportunities [22][29] Other Important Information - The company anticipates free cash flow of $220 million or more for the year, reflecting strategic increases in inventory investments [61][75] - The leverage ratio is expected to gradually decrease over time, providing more capital allocation flexibility [55][96] Q&A Session Summary Question: What drove the sales reduction to the lower end of the range? - The sales guidance was adjusted from 4% growth to 3% growth primarily due to foreign exchange headwinds, particularly with the Australian and Canadian dollars [38] Question: When do you expect improvements in the women's health and eye & ear care categories? - Management did not provide specific timelines but acknowledged ongoing challenges in these categories [40] Question: Is there any pushback from retailers on pricing? - There has been no significant pushback from retailers on pricing, as they are also facing inflationary pressures [113] Question: What percentage of growth is attributed to pricing actions? - Pricing actions are expected to account for about two-thirds of the growth for the year, estimated in the $15 million to $20 million range [117] Question: How is the company addressing supply chain disruptions? - The company is focusing on building inventory buffers and adding new suppliers to mitigate supply chain challenges [28][125]

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis for the reported periods [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Prestige Consumer Healthcare Inc., including statements of income and comprehensive income, balance sheets, statements of changes in stockholders' equity, and statements of cash flows, along with detailed notes explaining the company's business, accounting policies, acquisitions, and financial instrument details for the periods ended December 31, 2022 and 2021 [Condensed Consolidated Statements of Income and Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) This section provides the company's condensed consolidated statements of income and comprehensive income for the three and nine months ended December 31, 2022 and 2021 Three Months Ended December 31, 2022 vs 2021 (in thousands) | Metric | 2022 | 2021 | Change ($) | Change (%) | | :-------------------------------- | :----- | :----- | :--------- | :--------- | | Net sales | $275,495 | $274,454 | $1,041 | 0.4% | | Total revenues | $275,524 | $274,470 | $1,054 | 0.4% | | Gross profit | $150,402 | $155,060 | $(4,658) | (3.0)% | | Operating income | $87,184 | $82,594 | $4,590 | 5.6% | | Net income | $51,951 | $50,215 | $1,736 | 3.5% | | Basic EPS | $1.05 | $1.00 | $0.05 | 5.0% | | Diluted EPS | $1.04 | $0.99 | $0.05 | 5.1% | | Comprehensive income | $58,921 | $51,428 | $7,493 | 14.6% | Nine Months Ended December 31, 2022 vs 2021 (in thousands) | Metric | 2022 | 2021 | Change ($) | Change (%) | | :-------------------------------- | :----- | :----- | :--------- | :--------- | | Net sales | $841,783 | $819,843 | $21,940 | 2.7% | | Total revenues | $841,856 | $819,876 | $21,980 | 2.7% | | Gross profit | $471,530 | $471,784 | $(254) | (0.1)% | | Operating income | $258,582 | $252,494 | $6,088 | 2.4% | | Net income | $158,246 | $153,295 | $4,951 | 3.2% | | Basic EPS | $3.17 | $3.05 | $0.12 | 3.9% | | Diluted EPS | $3.14 | $3.02 | $0.12 | 4.0% | | Comprehensive income | $147,789 | $149,889 | $(2,100) | (1.4)% | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's condensed consolidated balance sheets as of December 31, 2022, and March 31, 2022 As of December 31, 2022 vs March 31, 2022 (in thousands) | Metric | Dec 31, 2022 | Mar 31, 2022 | Change ($) | Change (%) | | :-------------------------------- | :----------- | :----------- | :--------- | :--------- | | Total current assets | $408,847 | $293,267 | $115,580 | 39.4% | | Total Assets | $3,749,774 | $3,670,681 | $79,093 | 2.2% | | Total current liabilities | $160,176 | $143,422 | $16,754 | 11.7% | | Total Liabilities | $2,062,911 | $2,093,070 | $(30,159) | (1.4)% | | Total Stockholders' Equity | $1,686,863 | $1,577,611 | $109,252 | 6.9% | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) This section details the changes in the company's stockholders' equity for the nine months ended December 31, 2022 and 2021 Stockholders' Equity Changes (Nine Months Ended December 31, 2022 vs March 31, 2022) (in thousands) | Metric | March 31, 2022 | December 31, 2022 | Change ($) | | :-------------------------------- | :------------- | :---------------- | :--------- | | Common Stock (Par Value) | $544 | $548 | $4 | | Additional Paid-in Capital | $515,583 | $532,508 | $16,925 | | Treasury Stock (Amount) | $(133,648) | $(189,114) | $(55,466) | | Accumulated Other Comprehensive Loss | $(19,032) | $(29,489) | $(10,457) | | Retained Earnings | $1,214,164 | $1,372,410 | $158,246 | | Total Stockholders' Equity | $1,577,611 | $1,686,863 | $109,252 | - Treasury share repurchases amounted to **$55.5 million** for the nine months ended December 31, 2022, significantly increasing from the prior year[19](index=19&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section outlines the company's cash flows from operating, investing, and financing activities for the nine months ended December 31, 2022 and 2021 Nine Months Ended December 31, 2022 vs 2021 (in thousands) | Activity | 2022 | 2021 | Change ($) | | :-------------------------------- | :----- | :----- | :--------- | | Net cash provided by operating activities | $170,729 | $196,796 | $(26,067) | | Net cash used in investing activities | $(5,226) | $(253,218) | $247,992 | | Net cash (used in) provided by financing activities | $(105,351) | $46,546 | $(151,897) | | Cash and cash equivalents - end of period | $86,358 | $21,018 | $65,340 | - Cash and cash equivalents increased by **$59.2 million** for the nine months ended December 31, 2022, reaching **$86.4 million**, primarily due to a significant decrease in cash used for investing activities compared to the prior year's Akorn acquisition[22](index=22&type=chunk) [Notes to Condensed Consolidated Financial Statements (unaudited)](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) This section provides detailed notes to the condensed consolidated financial statements, explaining accounting policies, acquisitions, and financial instrument details [Note 1. Business and Basis of Presentation](index=11&type=section&id=1.%20Business%20and%20Basis%20of%20Presentation) This note describes the company's business, its operating environment, and the basis of financial statement presentation - Prestige Consumer Healthcare Inc. develops, manufactures, markets, sells, and distributes over-the-counter (OTC) healthcare products in North America, Australia, and other international markets[24](index=24&type=chunk) - The company operates in an uncertain economic environment characterized by global supply chain constraints, rising interest rates, high inflation, and geopolitical events, which could impact product demand and costs[25](index=25&type=chunk)[26](index=26&type=chunk) - No new accounting pronouncements were adopted in fiscal 2023, and recently issued ASUs (2022-02, 2022-01, 2021-08, 2020-04) are not expected to have a material effect on the consolidated financial statements upon adoption[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) [Note 2. Acquisition (Akorn)](index=12&type=section&id=2.%20Acquisition) This note details the acquisition of Akorn Operating Company LLC's consumer health business assets - On July 1, 2021, the company acquired the consumer health business assets from Akorn Operating Company LLC for **$228.9 million** in cash, adding brands like TheraTears[33](index=33&type=chunk) Akorn Acquisition Asset Allocation (July 1, 2021, in thousands) | Asset Category | Amount | | :--------------- | :----- | | Inventories | $6,455 | | Goodwill | $1,098 | | Intangible assets | $225,410 | | Total assets acquired | $232,963 | | Total purchase price | $228,914 | - The acquisition resulted in **$195.9 million** allocated to non-amortizable intangible assets (trademarks) and **$29.5 million** to amortizable intangible assets (customer relationships and trademarks), amortized over an estimated weighted average useful life of **12.5 years**[36](index=36&type=chunk) [Note 3. Inventories](index=13&type=section&id=3.%20Inventories) This note provides a breakdown of inventory components and changes over the period Inventories (in thousands) | Component | December 31, 2022 | March 31, 2022 | | :------------------------ | :---------------- | :------------- | | Packaging and raw materials | $20,306 | $16,984 | | Work in process | $453 | $338 | | Finished goods | $137,763 | $103,020 | | Total Inventories | $158,522 | $120,342 | - Inventories increased by **$38.2 million** from March 31, 2022, to December 31, 2022, primarily driven by a rise in finished goods. The company also reported a reduction in inventory values for obsolete and slow-moving items of **$4.5 million** at December 31, 2022[38](index=38&type=chunk) [Note 4. Goodwill](index=14&type=section&id=4.%20Goodwill) This note details the company's goodwill by segment and discusses impairment considerations Goodwill by Segment (in thousands) | Segment | March 31, 2022 | December 31, 2022 | Change ($) | | :------------------------ | :------------- | :---------------- | :--------- | | North American OTC Healthcare | $548,291 | $547,741 | $(550) | | International OTC Healthcare | $30,685 | $28,861 | $(1,824) | | Consolidated | $578,976 | $576,602 | $(2,374) | - Goodwill decreased slightly by **$2.4 million** to **$576.6 million** as of December 31, 2022, primarily due to foreign currency exchange rate effects on the International OTC Healthcare segment and a minor adjustment related to acquisition[40](index=40&type=chunk) - No events indicating potential impairment of goodwill were identified as of December 31, 2022, despite economic uncertainties and rising interest rates that could impact future impairment analyses[41](index=41&type=chunk)[42](index=42&type=chunk) [Note 5. Intangible Assets, net](index=15&type=section&id=5.%20Intangible%20Assets,%20net) This note presents the company's intangible assets, net, and related amortization and impairment considerations Intangible Assets, Net (in thousands) | Category | March 31, 2022 | December 31, 2022 | Change ($) | | :------------------------ | :------------- | :---------------- | :--------- | | Indefinite-Lived Trademarks | $2,476,559 | $2,468,913 | $(7,646) | | Finite-Lived Trademarks and Customer Relationships (Net) | $220,076 | $201,415 | $(18,661) | | Total Intangible Assets, Net | $2,696,635 | $2,670,328 | $(26,307) | - Total intangible assets, net, decreased by **$26.3 million**, primarily due to foreign currency exchange rate effects and amortization of finite-lived assets. Amortization expense for finite-lived intangible assets was **$16.9 million** for the nine months ended December 31, 2022[44](index=44&type=chunk)[45](index=45&type=chunk) - No events indicating potential impairment of intangible assets were identified as of December 31, 2022, though rising interest rates and economic conditions could impact future fair value assessments[47](index=47&type=chunk)[48](index=48&type=chunk) [Note 6. Leases](index=16&type=section&id=6.%20Leases) This note outlines the company's lease costs, weighted average lease terms, and discount rates Total Net Lease Cost (in thousands) | Period | 2022 | 2021 | Change ($) | Change (%) | | :------------------------ | :----- | :----- | :--------- | :--------- | | Three Months Ended Dec 31 | $17,089 | $12,150 | $4,939 | 40.6% | | Nine Months Ended Dec 31 | $50,864 | $40,628 | $10,236 | 25.2% | - Total net lease cost increased significantly, primarily driven by a substantial rise in variable lease costs, which grew from **$9.77 million** to **$14.73 million** for the three months ended December 31, 2022, and from **$33.42 million** to **$43.74 million** for the nine months ended December 31, 2022[50](index=50&type=chunk) Weighted Average Lease Terms and Discount Rates (December 31, 2022) | Lease Type | Remaining Lease Term (years) | Discount Rate | | :--------------- | :--------------------------- | :------------ | | Operating leases | 3.43 | 3.29% | | Finance leases | 1.92 | 2.95% | [Note 7. Other Accrued Liabilities](index=17&type=section&id=7.%20Other%20Accrued%20Liabilities) This note provides a breakdown of other accrued liabilities and their changes Other Accrued Liabilities (in thousands) | Category | December 31, 2022 | March 31, 2022 | Change ($) | | :------------------------ | :---------------- | :------------- | :--------- | | Accrued marketing costs | $35,936 | $36,149 | $(213) | | Accrued compensation costs | $10,436 | $19,587 | $(9,151) | | Income taxes payable | $6,973 | $2,670 | $4,303 | | Accrued production costs | $5,435 | $3,686 | $1,749 | | Total Other Accrued Liabilities | $70,983 | $74,113 | $(3,130) | - Total other accrued liabilities decreased by **$3.1 million**, primarily due to a significant reduction in accrued compensation costs, partially offset by an increase in income taxes payable and accrued production costs[51](index=51&type=chunk) [Note 8. Long-Term Debt](index=17&type=section&id=8.%20Long-Term%20Debt) This note details the company's long-term debt instruments, repayments, and borrowing capacity Long-Term Debt (in thousands) | Debt Instrument | December 31, 2022 | March 31, 2022 | Change ($) | | :-------------------------------- | :---------------- | :------------- | :--------- | | 2021 Senior Notes (3.750%, due 2031) | $600,000 | $600,000 | $0 | | 2019 Senior Notes (5.125%, due 2028) | $400,000 | $400,000 | $0 | | 2012 Term B-5 Loans (variable, due 2028) | $440,000 | $495,000 | $(55,000) | | Total Long-term debt, net | $1,424,095 | $1,476,658 | $(52,563) | - Long-term debt, net, decreased by **$52.6 million**, primarily due to **$55.0 million** in voluntary principal repayments against the 2012 Term B-5 Loans. The company has no required principal payments until maturity in 2028 and 2031[52](index=52&type=chunk)[53](index=53&type=chunk) - As of December 31, 2022, the company had no outstanding balance on its 2012 ABL Revolver and a borrowing capacity of **$155.3 million**[52](index=52&type=chunk) [Note 9. Fair Value Measurements](index=17&type=section&id=9.%20Fair%20Value%20Measurements) This note presents the fair value measurements for the company's debt instruments Fair Value of Debt Instruments (in thousands) | Debt Instrument | Carrying Value (Dec 31, 2022) | Fair Value (Dec 31, 2022) | Carrying Value (Mar 31, 2022) | Fair Value (Mar 31, 2022) | | :------------------------ | :---------------------------- | :-------------------------- | :---------------------------- | :-------------------------- | | 2021 Senior Notes | $600,000 | $496,500 | $600,000 | $534,000 | | 2019 Senior Notes | $400,000 | $379,000 | $400,000 | $397,000 | | 2012 Term B-5 Loans | $440,000 | $437,800 | $495,000 | $493,144 | - The fair values of the 2021 Senior Notes and 2019 Senior Notes were significantly lower than their carrying values at December 31, 2022, indicating a market discount, while the 2012 Term B-5 Loans' fair value was close to its carrying value[57](index=57&type=chunk) - All listed debt instruments are measured in Level 2 of the fair value hierarchy, based on quoted prices for similar instruments in active markets or identical/similar instruments in inactive markets[56](index=56&type=chunk) [Note 10. Derivative Instruments](index=18&type=section&id=10.%20Derivative%20Instruments) This note describes the company's derivative instruments, specifically interest rate swaps, and their financial impact Interest Rate Swaps (in thousands) | Metric | Three Months Ended Dec 31, 2022 | Three Months Ended Dec 31, 2021 | Nine Months Ended Dec 31, 2022 | Nine Months Ended Dec 31, 2021 | | :-------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Gain Recognized in Other Comprehensive Loss | $0 | $561 | $0 | $1,631 | | Loss Reclassified from Accumulated Other Comprehensive Loss into Income | $0 | $(735) | $0 | $(2,185) | - The company's interest rate swap, hedging **$200.0 million** of variable interest debt, settled on January 31, 2022, resulting in no gains or losses recognized or reclassified for the periods ended December 31, 2022[58](index=58&type=chunk)[59](index=59&type=chunk) [Note 11. Stockholders' Equity](index=18&type=section&id=11.%20Stockholders'%20Equity) This note details the company's common stock, preferred stock, and share repurchase activities - The company is authorized to issue **250.0 million** shares of common stock and **5.0 million** shares of preferred stock. No dividends have been declared or paid on common stock through December 31, 2022[60](index=60&type=chunk)[61](index=61&type=chunk) Share Repurchases (Nine Months Ended December 31, 2022 vs 2021) | Type of Repurchase | 2022 | 2021 | | :-------------------------------- | :----- | :----- | | Shares repurchased for employee restricted stock awards (Number) | 99,522 | 63,614 | | Shares repurchased for employee restricted stock awards (Amount) | $5.5 million | $2.9 million | | Shares repurchased under share repurchase program (Number) | 914,236 | — | | Shares repurchased under share repurchase program (Amount) | $50.0 million | — | - The company repurchased **$50.0 million** of common stock under its share repurchase program during the nine months ended December 31, 2022, in addition to shares repurchased for employee restricted stock awards[63](index=63&type=chunk) [Note 12. Accumulated Other Comprehensive Loss](index=20&type=section&id=12.%20Accumulated%20Other%20Comprehensive%20Loss) This note provides a breakdown of accumulated other comprehensive loss components and their changes Accumulated Other Comprehensive Loss (in thousands) | Component | December 31, 2022 | March 31, 2022 | Change ($) | | :-------------------------------- | :---------------- | :------------- | :--------- | | Cumulative translation adjustment | $(29,871) | $(20,204) | $(9,667) | | Unrecognized net gain on pension plans | $382 | $1,172 | $(790) | | Total Accumulated Other Comprehensive Loss | $(29,489) | $(19,032) | $(10,457) | - Accumulated other comprehensive loss increased by **$10.5 million**, primarily due to negative currency translation adjustments and a decrease in unrecognized net gain on pension plans[64](index=64&type=chunk) [Note 13. Earnings Per Share](index=20&type=section&id=13.%20Earnings%20Per%20Share) This note details the calculation of basic and diluted earnings per share and related share counts Earnings Per Share (Three Months Ended December 31) | Metric | 2022 | 2021 | Change ($) | Change (%) | | :------------------------ | :----- | :----- | :--------- | :--------- | | Basic EPS | $1.05 | $1.00 | $0.05 | 5.0% | | Diluted EPS | $1.04 | $0.99 | $0.05 | 5.1% | | Weighted average shares outstanding (Basic) | 49,693 | 50,303 | (610) | (1.2)% | | Weighted average shares outstanding (Diluted) | 50,186 | 50,935 | (749) | (1.5)% | Earnings Per Share (Nine Months Ended December 31) | Metric | 2022 | 2021 | Change ($) | Change (%) | | :------------------------ | :----- | :----- | :--------- | :--------- | | Basic EPS | $3.17 | $3.05 | $0.12 | 3.9% | | Diluted EPS | $3.14 | $3.02 | $0.12 | 4.0% | | Weighted average shares outstanding (Basic) | 49,919 | 50,225 | (306) | (0.6)% | | Weighted average shares outstanding (Diluted) | 50,392 | 50,799 | (407) | (0.8)% | - Both basic and diluted EPS increased for both the three and nine months ended December 31, 2022, driven by higher net income and a reduction in weighted average shares outstanding[67](index=67&type=chunk) [Note 14. Stock-Based Compensation](index=21&type=section&id=14.%20Stock-Based%20Compensation) This note outlines the company's stock-based compensation costs and unrecognized compensation expenses Stock-Based Compensation Costs (in thousands) | Metric | Three Months Ended Dec 31, 2022 | Three Months Ended Dec 31, 2021 | Nine Months Ended Dec 31, 2022 | Nine Months Ended Dec 31, 2021 | | :-------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Pre-tax stock-based compensation costs | $2,433 | $2,234 | $9,756 | $7,331 | | Income tax benefit recognized | $49 | $132 | $924 | $644 | | Cash received from stock option exercise | $5,684 | $3,011 | $7,173 | $5,718 | - Pre-tax stock-based compensation costs increased by **$2.4 million** for the nine months ended December 31, 2022, reaching **$9.8 million**. Cash received from stock option exercises also increased to **$7.2 million**[70](index=70&type=chunk) - As of December 31, 2022, there were **$3.9 million** of unrecognized compensation costs for stock options (weighted average period of **1.9 years**) and **$11.4 million** for RSUs and PSUs (weighted average period of **1.7 years**)[71](index=71&type=chunk) [Note 15. Income Taxes](index=23&type=section&id=15.%20Income%20Taxes) This note presents the company's income tax provision and effective tax rates Income Tax Provision and Effective Tax Rate | Period | Provision (2022) | Provision (2021) | Effective Rate (2022) | Effective Rate (2021) | | :-------------------------------- | :--------------- | :--------------- | :-------------------- | :-------------------- | | Three Months Ended Dec 31 | $16.2 million | $15.3 million | 23.7% | 23.3% | | Nine Months Ended Dec 31 | $47.4 million | $48.2 million | 23.0% | 23.9% | - The effective tax rate for the nine months ended December 31, 2022, decreased to **23.0%** from **23.9%** in the prior year, primarily due to discrete items related to state tax rate legislative changes and stock-based compensation[77](index=77&type=chunk) [Note 16. Employee Retirement Plans](index=23&type=section&id=16.%20Employee%20Retirement%20Plans) This note details the company's employee retirement plans and net periodic benefit expense Net Periodic Benefit Expense (Income) (in thousands) | Period | 2022 | 2021 | | :-------------------------------- | :----- | :----- | | Three Months Ended Dec 31 | $30 | $(12) | | Nine Months Ended Dec 31 | $138 | $(36) | - The company completed the termination of its U.S. qualified defined benefit pension plan during the first quarter of fiscal 2023, resulting in a settlement loss of **$0.4 million** and no further contributions required[80](index=80&type=chunk) [Note 17. Commitments and Contingencies](index=24&type=section&id=17.%20Commitments%20and%20Contingencies) This note describes the company's legal matters and claims incidental to its business - The company is involved in various legal matters and claims incidental to its business, which are regularly assessed for potential loss. Management believes that reasonably possible losses from these routine matters will not materially adversely affect the business[81](index=81&type=chunk) [Note 18. Concentrations of Risk](index=24&type=section&id=18.%20Concentrations%20of%20Risk) This note identifies concentrations of risk related to customers, brands, and manufacturing - The company's revenues are concentrated in OTC Healthcare, with Walmart accounting for approximately **19.9%** and **19.8%** of gross revenues for the three and nine months ended December 31, 2022, respectively[82](index=82&type=chunk) - Approximately **36.9%** and **38.7%** of gross revenues for the three and nine months ended December 31, 2022, respectively, were derived from the top five selling brands[82](index=82&type=chunk) - The company relies on a single primary distribution center and one manufacturing facility, and 133 third-party manufacturers (27 with long-term contracts covering **70.5%** of gross sales for the nine months ended December 31, 2022), posing risks of disruption, increased costs, or supply chain issues[83](index=83&type=chunk)[84](index=84&type=chunk)[85](index=85&type=chunk) [Note 19. Business Segments](index=26&type=section&id=19.%20Business%20Segments) This note outlines the company's reportable business segments and their performance metrics - The company operates in two reportable segments: North American OTC Healthcare and International OTC Healthcare, with performance evaluated based on contribution margin (gross profit less advertising and marketing expenses)[87](index=87&type=chunk) Total Segment Revenues (Three Months Ended December 31, 2022, in thousands) | Segment | Revenue | | :------------------------ | :------ | | North American OTC Healthcare | $236,884 | | International OTC Healthcare | $38,640 | | Consolidated | $275,524 | Total Segment Revenues (Nine Months Ended December 31, 2022, in thousands) | Segment | Revenue | | :------------------------ | :------ | | North American OTC Healthcare | $731,456 | | International OTC Healthcare | $110,400 | | Consolidated | $841,856 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations, highlighting key performance drivers, segment-level analysis, and the impact of the economic environment. It also discusses liquidity, capital resources, and critical accounting policies [General](index=29&type=section&id=General) Prestige Consumer Healthcare Inc. develops, manufactures, markets, sells, and distributes well-recognized, brand-name over-the-counter (OTC) healthcare products - Prestige Consumer Healthcare Inc. is a developer, manufacturer, marketer, seller, and distributor of well-recognized, brand-name over-the-counter (OTC) healthcare products in North America and international markets[98](index=98&type=chunk) - The company's growth strategy involves both organic development of existing brands through new product lines, extensions, and advertising, and strategic acquisitions of 'non-core' OTC brands to reinvigorate their performance[99](index=99&type=chunk) [Acquisition](index=29&type=section&id=Acquisition) This section details the acquisition of Akorn Operating Company LLC's consumer health business assets - On July 1, 2021, the company acquired the consumer health business assets from Akorn Operating Company LLC for **$228.9 million** in cash, adding brands such as TheraTears to its portfolio[100](index=100&type=chunk) - The acquisition was accounted for as a business combination, with **$195.9 million** allocated to non-amortizable intangible assets (trademarks) and **$29.5 million** to amortizable intangible assets (customer relationships and trademarks)[102](index=102&type=chunk) [Economic Environment](index=30&type=section&id=Economic%20Environment) This section discusses the volatile economic environment and its impact on the company's operations - The company operates in a volatile economic environment marked by global supply chain constraints, rising interest rates, high inflation, and geopolitical events, which are expected to continue impacting prices, supply, and product demand[104](index=104&type=chunk) - Despite experiencing solid consumer consumption and share gains in fiscal 2022, the company notes changes in purchasing patterns, including reduced retailer visits and a shift to online purchasing[104](index=104&type=chunk) - Labor and raw material shortages, along with increased input and shipping costs, have impacted the supply chain, though no material disruption to overall operations, sales, or liquidity has occurred to date[105](index=105&type=chunk) [Results of Operations (Three Months Ended December 31, 2022 compared to the Three Months Ended December 31, 2021)](index=31&type=section&id=Results%20of%20Operations%20(Three%20Months%20Ended%20December%2031,%202022%20compared%20to%20the%20Three%20Months%20Ended%20December%2031,%202021)) This section analyzes the company's financial performance for the three months ended December 31, 2022, compared to the prior year [Total Segment Revenues (3 Months)](index=31&type=section&id=Total%20Segment%20Revenues) This section provides a breakdown of total segment revenues for the three months ended December 31 Total Segment Revenues (Three Months Ended December 31, in thousands) | Segment | 2022 | 2021 | Change ($) | Change (%) | | :------------------------ | :----- | :----- | :--------- | :--------- | | North American OTC Healthcare | $236,884 | $240,857 | $(3,973) | (1.6)% | | International OTC Healthcare | $38,640 | $33,613 | $5,027 | 15.0% | | Total Consolidated | $275,524 | $274,470 | $1,054 | 0.4% | [North American OTC Healthcare Segment (3 Months)](index=31&type=section&id=North%20American%20OTC%20Healthcare%20Segment) This section details the revenue performance of the North American OTC Healthcare segment for the three months ended December 31 - Revenues for the North American OTC Healthcare segment decreased by **$4.0 million (1.6%)** for the three months ended December 31, 2022, primarily due to declines in Women's Health and Eye & Ear categories, partially offset by growth in Cough & Cold and Gastrointestinal[109](index=109&type=chunk) [International OTC Healthcare Segment (3 Months)](index=31&type=section&id=International%20OTC%20Healthcare%20Segment) This section details the revenue performance of the International OTC Healthcare segment for the three months ended December 31 - Revenues for the International OTC Healthcare segment increased by **$5.0 million (15.0%)** for the three months ended December 31, 2022, driven by increased consumer demand across key brands, easing COVID-19 restrictions, and a rise in consumer illnesses[110](index=110&type=chunk) [Gross Profit (3 Months)](index=32&type=section&id=Gross%20Profit) This section analyzes the company's gross profit performance for the three months ended December 31 Gross Profit (Three Months Ended December 31, in thousands) | Segment | 2022 | 2021 | Change ($) | Change (%) | | :------------------------ | :----- | :----- | :--------- | :--------- | | North American OTC Healthcare | $126,330 | $134,067 | $(7,737) | (5.8)% | | International OTC Healthcare | $24,072 | $20,993 | $3,079 | 14.7% | | Total Consolidated | $150,402 | $155,060 | $(4,658) | (3.0)% | | Gross Profit % of Total Revenues | 54.6% | 56.5% | (1.9) pp | (3.4)% | - Consolidated gross profit decreased by **$4.7 million (3.0%)**, with gross profit as a percentage of total revenues declining to **54.6%** from **56.5%**, primarily due to increased supply chain costs and product mix[112](index=112&type=chunk) [Contribution Margin (3 Months)](index=32&type=section&id=Contribution%20Margin) This section analyzes the company's contribution margin performance for the three months ended December 31 Contribution Margin (Three Months Ended December 31, in thousands) | Segment | 2022 | 2021 | Change ($) | Change (%) | | :------------------------ | :----- | :----- | :--------- | :--------- | | North American OTC Healthcare | $101,499 | $99,160 | $2,339 | 2.4% | | International OTC Healthcare | $18,480 | $15,661 | $2,819 | 18.0% | | Total Consolidated | $119,979 | $114,821 | $5,158 | 4.5% | | Contribution Margin % of Total Revenues | 43.5% | 41.8% | 1.7 pp | 4.1% | - Consolidated contribution margin increased by **$5.2 million (4.5%)**, with the percentage of total revenues rising to **43.5%** from **41.8%**, mainly due to lower advertising and marketing spend[116](index=116&type=chunk)[117](index=117&type=chunk)[118](index=118&type=chunk) [General and Administrative (3 Months)](index=33&type=section&id=General%20and%20Administrative) This section details changes in general and administrative expenses for the three months ended December 31 - General and administrative expenses increased slightly to **$26.5 million** from **$26.0 million**, primarily due to higher compensation costs, partially offset by reduced professional fees and acquisition costs from the prior period[119](index=119&type=chunk) [Depreciation and Amortization (3 Months)](index=33&type=section&id=Depreciation%20and%20Amortization) This section details depreciation and amortization expenses for the three months ended December 31 - Depreciation and amortization expenses remained relatively flat at **$6.3 million** for the three months ended December 31, 2022, compared to **$6.2 million** in the prior year[120](index=120&type=chunk) [Interest Expense, Net (3 Months)](index=33&type=section&id=Interest%20Expense,%20Net) This section analyzes net interest expense for the three months ended December 31 - Net interest expense increased to **$17.9 million** from **$16.9 million**, despite a decrease in average indebtedness, due to a rise in the average cost of borrowing from **4.2%** to **5.0%**[121](index=121&type=chunk) [Income Taxes (3 Months)](index=33&type=section&id=Income%20Taxes) This section details the provision for income taxes and effective tax rate for the three months ended December 31 - The provision for income taxes increased to **$16.2 million** from **$15.3 million**, with the effective tax rate rising to **23.7%** from **23.3%**, primarily due to discrete items related to stock-based compensation[122](index=122&type=chunk) [Results of Operations (Nine Months Ended December 31, 2022 compared to the Nine Months Ended December 31, 2021)](index=34&type=section&id=Results%20of%20Operations%20(Nine%20Months%20Ended%20December%2031,%202022%20compared%20to%20the%20Nine%20Months%20Ended%20December%2031,%202021)) This section analyzes the company's financial performance for the nine months ended December 31, 2022, compared to the prior year [Total Segment Revenues (9 Months)](index=34&type=section&id=Total%20Segment%20Revenues) This section provides a breakdown of total segment revenues for the nine months ended December 31 Total Segment Revenues (Nine Months Ended December 31, in thousands) | Segment | 2022 | 2021 | Change ($) | Change (%) | | :------------------------ | :----- | :----- | :--------- | :--------- | | North American OTC Healthcare | $731,456 | $734,978 | $(3,522) | (0.5)% | | International OTC Healthcare | $110,400 | $84,898 | $25,502 | 30.0% | | Total Consolidated | $841,856 | $819,876 | $21,980 | 2.7% | [North American OTC Healthcare Segment (9 Months)](index=34&type=section&id=North%20American%20OTC%20Healthcare%20Segment) This section details the revenue performance of the North American OTC Healthcare segment for the nine months ended December 31 - Revenues for the North American OTC Healthcare segment decreased by **$3.5 million (0.5%)** for the nine months ended December 31, 2022, primarily due to a decline in the Women's Health category, partially offset by an increase in Cough & Cold sales[126](index=126&type=chunk) [International OTC Healthcare Segment (9 Months)](index=34&type=section&id=International%20OTC%20Healthcare%20Segment) This section details the revenue performance of the International OTC Healthcare segment for the nine months ended December 31 - Revenues for the International OTC Healthcare segment increased significantly by **$25.5 million (30.0%)** for the nine months ended December 31, 2022, mainly driven by increased sales of the Hydralyte brand in Australia due to easing COVID-19 restrictions and higher consumer illnesses[127](index=127&type=chunk) [Gross Profit (9 Months)](index=35&type=section&id=Gross%20Profit) This section analyzes the company's gross profit performance for the nine months ended December 31 Gross Profit (Nine Months Ended December 31, in thousands) | Segment | 2022 | 2021 | Change ($) | Change (%) | | :------------------------ | :----- | :----- | :--------- | :--------- | | North American OTC Healthcare | $404,448 | $420,161 | $(15,713) | (3.7)% | | International OTC Healthcare | $67,082 | $51,623 | $15,459 | 29.9% | | Total Consolidated | $471,530 | $471,784 | $(254) | (0.1)% | | Gross Profit % of Total Revenues | 56.0% | 57.5% | (1.5) pp | (2.6)% | - Consolidated gross profit remained relatively flat, decreasing by **$0.3 million (0.1%)**, with gross profit as a percentage of total revenues declining to **56.0%** from **57.5%**, primarily due to increased supply chain costs and product mix[129](index=129&type=chunk) [Contribution Margin (9 Months)](index=35&type=section&id=Contribution%20Margin) This section analyzes the company's contribution margin performance for the nine months ended December 31 Contribution Margin (Nine Months Ended December 31, in thousands) | Segment | 2022 | 2021 | Change ($) | Change (%) | | :------------------------ | :----- | :----- | :--------- | :--------- | | North American OTC Healthcare | $304,889 | $313,531 | $(8,642) | (2.8)% | | International OTC Healthcare | $52,448 | $37,845 | $14,603 | 38.6% | | Total Consolidated | $357,337 | $351,376 | $5,961 | 1.7% | | Contribution Margin % of Total Revenues | 42.4% | 42.9% | (0.5) pp | (1.2)% | - Consolidated contribution margin increased by **$6.0 million (1.7%)**, with the percentage of total revenues slightly decreasing to **42.4%** from **42.9%**. The North American segment saw a decrease due to lower gross profit margin, while the International segment increased due to lower advertising and marketing spend as a percentage of net sales[133](index=133&type=chunk)[134](index=134&type=chunk)[135](index=135&type=chunk) [General and Administrative (9 Months)](index=36&type=section&id=General%20and%20Administrative) This section details changes in general and administrative expenses for the nine months ended December 31 - General and administrative expenses decreased to **$79.7 million** from **$80.7 million**, primarily due to acquisition costs in the prior period related to the Akorn acquisition, partially offset by increased compensation costs in the current period[136](index=136&type=chunk) [Depreciation and Amortization (9 Months)](index=36&type=section&id=Depreciation%20and%20Amortization) This section details depreciation and amortization expenses for the nine months ended December 31 - Depreciation and amortization expenses increased to **$19.1 million** from **$18.2 million**, attributable to higher amortization expense from brands acquired in 2022[137](index=137&type=chunk) [Interest Expense, Net (9 Months)](index=36&type=section&id=Interest%20Expense,%20Net) This section analyzes net interest expense for the nine months ended December 31 - Net interest expense increased to **$50.2 million** from **$48.3 million**, despite a decrease in average indebtedness, due to a rise in the average cost of borrowing from **4.1%** to **4.5%**[138](index=138&type=chunk) [Loss on Extinguishment of Debt (9 Months)](index=36&type=section&id=Loss%20on%20Extinguishment%20of%20Debt) This section details the loss on extinguishment of debt for the nine months ended December 31 - A loss on extinguishment of debt of **$2.1 million** was recorded during the nine months ended December 31, 2021, related to the amendment of the 2012 Term Loan[139](index=139&type=chunk) [Income Taxes (9 Months)](index=36&type=section&id=Income%20Taxes) This section details the provision for income taxes and effective tax rate for the nine months ended December 31 - The provision for income taxes decreased to **$47.4 million** from **$48.2 million**, with the effective tax rate decreasing to **23.0%** from **23.9%**, primarily due to discrete items related to state tax rate legislative changes and stock-based compensation[140](index=140&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's liquidity position, capital resources, and cash flow activities [Liquidity](index=36&type=section&id=Liquidity) This section outlines the company's sources of cash and expectations for financing operations - The company's primary source of cash is from operations, supplemented by debt facilities for acquisitions. It expects to finance operations for the foreseeable future through operating cash flow and existing credit facilities[141](index=141&type=chunk) Cash Flow Summary (Nine Months Ended December 31, in thousands) | Activity | 2022 | 2021 | Change ($) | | :-------------------------------- | :----- | :----- | :--------- | | Operating Activities | $170,729 | $196,796 | $(26,067) | | Investing Activities | $(5,226) | $(253,218) | $247,992 | | Financing Activities | $(105,351) | $46,546 | $(151,897) | | Net change in cash and cash equivalents | $59,173 | $(11,284) | $70,457 | [Operating Activities](index=36&type=section&id=Operating%20Activities) This section details net cash provided by operating activities for the nine months ended December 31 - Net cash provided by operating activities decreased by **$26.1 million** to **$170.7 million** for the nine months ended December 31, 2022, primarily due to increased working capital, partially offset by higher net income before non-cash items[143](index=143&type=chunk) [Investing Activities](index=36&type=section&id=Investing%20Activities) This section details net cash used in investing activities for the nine months ended December 31 - Net cash used in investing activities significantly decreased to **$5.2 million** from **$253.2 million**, primarily due to the absence of a large acquisition like Akorn in the current period[145](index=145&type=chunk) [Financing Activities](index=37&type=section&id=Financing%20Activities) This section details net cash used in financing activities for the nine months ended December 31 - Net cash used in financing activities was **$105.4 million**, a significant change from **$46.5 million** provided in the prior year, mainly due to lower net borrowings (**$107.0 million**) and **$50.0 million** in common stock repurchases[146](index=146&type=chunk) [Capital Resources](index=37&type=section&id=Capital%20Resources) This section outlines the company's total outstanding indebtedness and borrowing capacity - As of December 31, 2022, total outstanding indebtedness was **$1.4 billion**, consisting of **$600.0 million** in 2021 Senior Notes, **$400.0 million** in 2019 Senior Notes, and **$440.0 million** in 2012 Term B-5 Loans[147](index=147&type=chunk)[151](index=151&type=chunk) - The company made voluntary principal repayments of **$55.0 million** on the 2012 Term Loan, eliminating required payments until maturity. It also had **$155.3 million** in borrowing capacity on its 2012 ABL Revolver[147](index=147&type=chunk)[148](index=148&type=chunk) [Covenants](index=37&type=section&id=Covenants) This section describes the financial covenants associated with the company's debt facilities - The company's debt facilities include financial covenants requiring maintenance of specific leverage (less than **6.50 to 1.0**), interest coverage (greater than **2.25 to 1.0**), and fixed charge ratios (greater than **1.0 to 1.0**)[152](index=152&type=chunk)[153](index=153&type=chunk) - As of December 31, 2022, the company was in compliance with all applicable financial and restrictive covenants and anticipates continued compliance over the next twelve months[153](index=153&type=chunk) [Critical Accounting Policies and Estimates](index=38&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section discusses the critical accounting policies and estimates used in preparing the financial statements - The preparation of financial statements requires management to make estimates and assumptions, particularly for intangible asset valuation, stock-based compensation, debt fair value, sales returns, trade promotions, inventory obsolescence, and income taxes[154](index=154&type=chunk) - No material changes to critical accounting policies occurred during the nine months ended December 31, 2022[154](index=154&type=chunk) [Recent Accounting Pronouncements](index=38&type=section&id=Recent%20Accounting%20Pronouncements) This section refers to recently issued and adopted accounting pronouncements - A description of recently issued and adopted accounting pronouncements is included in Note 1 to the Condensed Consolidated Financial Statements[155](index=155&type=chunk) [CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS](index=39&type=section&id=CAUTIONARY%20STATEMENT%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section provides a cautionary statement regarding forward-looking statements within the report, emphasizing that such statements are based on current expectations and assumptions subject to various risks and uncertainties that could cause actual results to differ materially. It also lists numerous factors that could impact future results - Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, and the company does not intend to update them unless required by law[157](index=157&type=chunk)[158](index=158&type=chunk) - Key risk factors include price increases for raw materials, supply chain disruptions, the impact of the COVID-19 pandemic, intense competition, dependence on limited customers and third-party manufacturers, and financial factors like interest rate and currency fluctuations[160](index=160&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the company's exposure to market risks, specifically interest rate risk and foreign currency exchange rate risk, and provides a quantitative sensitivity analysis for each [Interest Rate Risk](index=41&type=section&id=Interest%20Rate%20Risk) This section discusses the company's exposure to interest rate changes on its variable rate debt - The company is exposed to interest rate changes due to its variable rate debt, with approximately **$440.0 million** of debt carrying a variable rate at December 31, 2022[163](index=163&type=chunk) - A hypothetical **1.0%** increase in interest rates on variable rate debt would adversely impact pre-tax earnings and cash flows by approximately **$1.1 million** for the three months and **$3.5 million** for the nine months ended December 31, 2022[164](index=164&type=chunk) [Foreign Currency Exchange Rate Risk](index=41&type=section&id=Foreign%20Currency%20Exchange%20Rate%20Risk) This section discusses the company's exposure to foreign currency exchange rate fluctuations - Approximately **14.9%** and **13.8%** of gross revenues for the three and nine months ended December 31, 2022, respectively, were denominated in currencies other than the U.S. Dollar, primarily Canadian and Australian Dollars[165](index=165&type=chunk) - A hypothetical **10.0%** adverse change in foreign currency exchange rates would result in a less than **5.0%** impact on pre-tax income, approximately **$2.3 million** for the three months and **$7.1 million** for the nine months ended December 31, 2022[166](index=166&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls and procedures and reports no material changes in internal control over financial reporting during the quarter [Disclosure Controls and Procedures](index=41&type=section&id=Disclosure%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls and procedures - As of December 31, 2022, the company's Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were effective[167](index=167&type=chunk) [Changes in Internal Control over Financial Reporting](index=41&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) This section reports on any material changes in internal control over financial reporting - There were no material changes in internal control over financial reporting during the quarter ended December 31, 2022[168](index=168&type=chunk) [PART II. OTHER INFORMATION](index=41&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section includes additional information such as risk factors, equity security purchases, and exhibits [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the comprehensive risk factors discussed in the company's Annual Report on Form 10-K, noting that no material changes have occurred in the current period, but reiterating that operating results may fluctuate and could fall below expectations - The risk factors outlined in the Annual Report on Form 10-K for the fiscal year ended March 31, 2022, have not materially changed in the period covered by this Quarterly Report[169](index=169&type=chunk) - Quarterly operating results and revenues may fluctuate due to various factors, and results for any one quarter are not necessarily indicative of future performance, potentially impacting the market price of securities[170](index=170&type=chunk)[172](index=172&type=chunk) [Item 2. Issuer Purchases of Equity Securities](index=43&type=section&id=Item%202.%20Issuer%20Purchases%20of%20Equity%20Securities) This section details the company's common stock repurchases during the quarter, specifically those made to satisfy tax-withholding requirements for employee restricted stock awards Issuer Purchases of Equity Securities (October 1 to December 31, 2022) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :------------------------ | :----------------------------- | :--------------------------- | | October 1 to October 31, 2022 | 303 | $50.63 | | November 1 to November 30, 2022 | — | $— | | December 1 to December 31, 2022 | — | $— | | Total | 303 | — | - The purchases were made pursuant to the 2020 Plan, allowing for indirect share repurchases through a net-settlement feature to satisfy minimum statutory tax-withholding requirements upon the vesting of shares[174](index=174&type=chunk) [Item 6. Exhibits](index=44&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, certifications from executive officers, and XBRL-related documents - Exhibits include the Amended and Restated Certificate of Incorporation, Amended and Restated Bylaws, certifications of principal executive and financial officers (Rule 13a-14(a) and Section 1350), and various Inline XBRL documents[177](index=177&type=chunk) [Signatures](index=45&type=section&id=Signatures) This section contains the required signatures, certifying the filing of the report on behalf of Prestige Consumer Healthcare Inc - The report was signed on February 2, 2023, by Christine Sacco, Chief Financial Officer (Principal Financial Officer and Duly Authorized Officer) of Prestige Consumer Healthcare Inc[181](index=181&type=chunk)

50 race ENSITIVE EYES Second Quarter FY 2023 Results November 3吋, 2022 RIPLE CLEAN 0 ULTIMATE Prestige Consumer HEALTHCARE Safe Harbor Disclosure This presentation contains certain "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements regarding the Company's expected financial performance, including revenues, diluted EPS, leverage, free cash flow, and organic revenue growth; the Company's ability to execute on its brand-building strategy; ...

Prestige Consumer Healthcare Inc. (NYSE:PBH) Q2 2023 Earnings Conference Call November 3, 2022 8:30 AM ET Company Participants Phil Terpolilli - Vice President, Investor Relations and Treasurer Ron Lombardi - President and Chief Executive Officer Christine Sacco - Chief Financial Officer Conference Call Participants Rupesh Parikh - Oppenheimer & Co. Jon Andersen - William Blair Operator Good day and thank you for standing by. Welcome to the Prestige Consumer Healthcare Second Quarter Earnings Conference Cal ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to _____ Commission File Number: 001-32433 PRESTIGE CONSUMER HEALTHCARE INC. (Exact Name of Registrant as Specified in Its Charter) (State or Other J ...

50 rac RIPLE CLEAN First Quarter FY 2023 Results August 4th, 2022 Prestige Consumer HEALTHCARE O ENSITIVE ULTIMATE Safe Harbor Disclosure This presentation contains certain "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements regarding the Company's expected financial performance, including revenues, diluted EPS, EBITDA, free cash flow, and organic revenue growth; the impact of branded POS on the market share of Hydralyte; the Company's ...

Prestige Consumer Healthcare Inc. (NYSE:PBH) Q1 2023 Earnings Conference Call August 4, 2022 8:30 AM ET Company Participants Phil Terpolilli - Vice President, Investor Relations and Treasurer Ron Lombardi - Chairman, President and CEO Christine Sacco - Chief Financial Officer Conference Call Participants Chris Neamonitis - Jefferies Jon Andersen - William Blair Mitch Pinheiro - Sturdivant Erica Eiler - Oppenheimer Linda Bolton Weiser - D.A. Davidson Operator Good morning. And welcome to the Prestige Consume ...