Prestige sumer Healthcare (US:PBH)2025-11-06 11:03Financial Performance - Reported revenues for Q2 fiscal 2026 were $274.1 million, a decrease of 3.4% from $283.8 million in Q2 fiscal 2025[4] - Net income for Q2 fiscal 2026 totaled $42.2 million, down from $54.4 million in the prior year, with diluted EPS of $0.86 compared to $1.09 in Q2 fiscal 2025[5] - For the first six months of fiscal 2026, revenues were $523.6 million, a decrease of 5.0% from $550.9 million in the same period last year[7] - Non-GAAP adjusted net income for the first six months of fiscal 2026 was $99.9 million, slightly up from $99.4 million in the prior year[9] - North American OTC Healthcare segment revenues for Q2 fiscal 2026 were $230.8 million, down from $239.8 million in the prior year[13] - International OTC Healthcare segment revenues for Q2 fiscal 2026 were $43.4 million, slightly down from $44.0 million in the prior year[15] - Total segment revenues for North American OTC Healthcare were $443,334, while International OTC Healthcare revenues were $80,310, leading to consolidated revenues of $523,644[35] Cash Flow and Share Repurchase - The company repurchased approximately 1.1 million shares in Q2 for about $75.0 million, totaling approximately 1.6 million shares repurchased for $109.8 million in the first half[12] - The net cash provided by operating activities for the first six months of fiscal 2026 was $136.5 million, compared to $124.6 million in the prior year[11] - Cash and cash equivalents at the end of the period increased to $119,106 from $97,884, marking a rise of 21.2%[32] - Non-GAAP Free Cash Flow for Q3 2025 was $55,384,000, down from $67,773,000 in Q3 2024, a decline of 18.5%[44] - Projected FY'26 Non-GAAP Free Cash Flow is estimated at $245,000,000[45] Guidance and Outlook - The company reaffirmed its fiscal 2026 revenue outlook of $1,100 to $1,115 million, with adjusted diluted EPS guidance updated to $4.54 to $4.58[20] - The company expects to improve eye care supply in the second half of fiscal 2026 due to long-term capacity efforts and the closing of the Pillar5 transaction[18] - Projected FY'26 GAAP Diluted EPS is expected to be between $4.33 and $4.37[46] - Projected FY'26 Non-GAAP Adjusted Diluted EPS is anticipated to be between $4.54 and $4.58[46] Profitability Metrics - Gross profit for the six months ended September 30, 2025, was $291,910, down from $303,404 in the same period of 2024, reflecting a decrease of 3.8%[37] - Operating income for the six months ended September 30, 2025, was $151,426, compared to $156,385 for the same period in 2024, indicating a decline of 3.5%[37] - The company reported a contribution margin of $218,272 for the six months ended September 30, 2025, compared to $222,630 in the same period of 2024, a decrease of 2.0%[37] Balance Sheet Highlights - Total assets increased to $3,442,280, up from $3,402,218, representing a growth of 1.2%[30] - Total current liabilities increased to $134,604 from $106,623, reflecting a rise of 26.2%[30] - Long-term debt remained stable at $993,146, slightly up from $992,357, indicating a marginal increase of 0.1%[30] Other Financial Metrics - GAAP Net Income for Q3 2025 was $42,211,000, a decrease from $54,377,000 in Q3 2024, representing a decline of 22.5%[43] - Non-GAAP EBITDA for Q3 2025 was $86,832,000, compared to $91,873,000 in Q3 2024, reflecting a decrease of 5.4%[43] - Non-GAAP EBITDA Margin for Q3 2025 was 31.7%, slightly down from 32.4% in Q3 2024[43] - GAAP Net Cash Provided by Operating Activities for Q3 2025 was $57,486,000, compared to $69,800,000 in Q3 2024[44] - Interest expense for Q3 2025 was $10,036,000, down from $12,281,000 in Q3 2024, a decrease of 18.3%[43] - Total adjustments to reconcile GAAP Net Income to Non-GAAP Adjusted Net Income for Q3 2025 amounted to $10,261,000[43]