Prestige sumer Healthcare (US:PBH)2025-11-06 11:11Revenue Performance - Total revenues for the three months ended September 30, 2025, were $274.1 million, a decrease of $9.7 million, or 3.4%, compared to the same period in 2024[86]. - Total revenues for the six months ended September 30, 2025 were $523.6 million, a decrease of $27.3 million, or 5.0%, compared to the same period in 2024[102]. - North American OTC Healthcare segment revenues decreased by $9.1 million, or 3.8%, primarily due to declines in Eye & Ear Care and Women's Health categories[87]. - North American OTC Healthcare segment revenues decreased by $28.8 million, or 6.1%, primarily due to a decline in sales in the Eye & Ear Care category[104]. - International OTC Healthcare segment revenues decreased by $0.6 million, or 1.4%, mainly attributed to a decrease in Eye & Ear Care sales[88]. - International OTC Healthcare segment revenues increased by $1.5 million, or 1.9%, mainly driven by sales growth in the Dermatologicals and Analgesics categories[105]. Profitability Metrics - Gross profit for the three months ended September 30, 2025, decreased by $5.8 million, or 3.7%, with gross profit as a percentage of total revenues decreasing to 55.3% from 55.5%[90]. - Gross profit for the six months ended September 30, 2025 decreased by $11.5 million, or 3.8%, while gross profit as a percentage of total revenues increased to 55.7% from 55.1%[107]. - Contribution margin for the North American OTC Healthcare segment decreased by $0.8 million, or 0.8%, while the percentage increased to 41.8% from 40.5%[95]. - Contribution margin for the North American OTC Healthcare segment decreased by $2.3 million, or 1.2%, but increased as a percentage of revenues to 42.4% from 40.3%[112]. - Contribution margin for the International OTC Healthcare segment decreased by $2.3 million, or 12.4%, with the percentage decreasing to 38.1% from 42.8%[96]. Expenses and Financial Position - General and administrative expenses increased by $1.9 million to $28.0 million for the three months ended September 30, 2025, primarily due to higher professional fees and acquisition costs[97]. - General and administrative expenses increased to $56.5 million for the six months ended September 30, 2025, up from $55.0 million in 2024[114]. - Net cash provided by operating activities was $136.5 million for the six months ended September 30, 2025, an increase of $11.9 million compared to the same period in 2024[120]. - Cash and cash equivalents as of September 30, 2025 were $119.1 million, an increase of $21.2 million from March 31, 2025[119]. - Interest expense, net decreased to $20.2 million for the six months ended September 30, 2025, down from $25.4 million in 2024, with average indebtedness decreasing to $1.0 billion[116]. - The provision for income taxes for the six months ended September 30, 2025 was $41.2 million, with an effective tax rate of 31.5%, up from 20.5% in 2024[117]. - Net cash used in financing activities decreased by $5.5 million to $111.2 million for the six months ended September 30, 2025, primarily due to a $75.0 million decrease in debt repayments[122]. - As of September 30, 2025, the company had an aggregate of $1.0 billion of outstanding indebtedness, with no balance on the asset-based revolving credit facility and a borrowing capacity of $190.0 million[123]. - The company must maintain a fixed charge ratio greater than 1.0 to 1.0, and it was in compliance with applicable financial and restrictive covenants as of September 30, 2025[125]. - The company anticipates remaining in compliance with financial and restrictive covenants during the next twelve months[125]. Economic and Market Conditions - The company continues to face economic uncertainty, including supply chain constraints and inflation, which may impact product demand and costs[80]. - The company expects ongoing volatility in economic conditions, which could further affect its operations and financial performance[81]. - The company is exposed to risks including disruptions in supply, price increases for raw materials, and competition in the industry[131]. Foreign Currency Exposure - Approximately 16.0% of gross revenues for the three months ended September 30, 2025, were denominated in currencies other than the U.S. Dollar, indicating exposure to foreign currency exchange rates[135]. - A hypothetical 10.0% adverse change in foreign currency exchange rates would have resulted in a pre-tax income impact of approximately $1.3 million for the three months ended September 30, 2025[136]. Debt and Financing - The company has $400.0 million of 5.125% 2019 senior unsecured notes maturing on January 15, 2028, and $600.0 million of 3.750% 2021 senior unsecured notes maturing on April 1, 2031[127]. - The company experienced a decrease in shares surrendered as payment of tax withholding by $1.6 million[122]. - There were no material changes to critical accounting policies during the six months ended September 30, 2025[126].