» » Prestige Brands Posts Profit In Q4, Yet Misses Estimates – Update

Prestige Brands Posts Profit In Q4, Yet Misses Estimates – Update

(RTTNews) – Prestige Brands Holdings, Inc. (PBH) Thursday reported a profit for the fourth quarter compared to a loss last year, driven by lower impairment charges and higher revenues. On an adjusted basis, earnings fell shy of consensus.

Fourth-quarter net income was $3.3 million or $0.07 per share compared to a loss of $211.1 million or $4.22 per share in the prior year comparable quarter.

The results for the quarter included an impairment charge related to of goodwill and intangible assets of $2.75 million compared to $249.29 million in the prior year period. During the quarter under review the company recorded a loss of $2.66 million on extinguishment of debt, which was absent in the prior year quarter.

Adjusting for the special items, net income for the quarter declined to $7.43 million or $0.15 per share from $9.0 million or $0.18 per share in the year-ago period. On average, five analysts polled by Thomson Reuters expected the company to earn $0.21 per share for the quarter. Analysts’ estimates typically exclude special items.

The company said that the decline in adjusted net income was primarily due to increased advertising and promotion and general and administrative expenses.

Revenues for the quarter rose to $71.38 million from $68.64 million in the year ago quarter. Net sales for the period was $67.79 million, down from $68.36 million in the prior year period. Other revenues surged to $3.59 million from $289 thousand in the corresponding quarter of last year, due to the favorable outcome of a legal dispute. Four analysts estimated revenues of $73.37 million for the quarter.

By segments, Over-The-Counter Healthcare generated revenues of $42.63 million, up from $39.79 million in the comparable quarter of last year. Revenues from Household Cleaning Products grew to $26.97 million from $26.72 million in the year-ago period. Personal Care Products contributed revenues of $1.78 million, down 14% from $2.14 million in the corresponding quarter of last year, primarily due to decreases in sales of Cutex.

Advertising and promotion expenses increased to $6.59 million from $5.65 million in the prior year quarter. General and administrative expenses were $8.11 million, up from $6.24 million in the year-ago period. Total operating expenses narrowed to $20.22 million from $263.67 million in the previous quarter last year.

Gross profit for the quarter improved to $35.47 million from $34.24 million in the same quarter last year. Operating income for the period was $15.24 million compared to an operating loss of $229.43 million in the previous year period.

For the full year, the company posted a net income of $32.12 million or $0.64 per share compared to a loss of $186.78 million or $3.74 per share last year. Total revenues for the period dropped to $302.02 million from $303.15 million a year ago. Analysts projected earnings of $0.78 per share on revenues of $305.69 million for the full year.

Matthew Mannelly, president and chief executive officer said, “Our focus will continue to be against these core brands as we build upon the fourth quarter momentum in fiscal year 2011. In addition, we successfully completed our debt refinancing which we expect to provide us with ample liquidity through 2018, and additional borrowing capacity should an appropriate acquisition opportunity arise.”

PBH closed Wednesday’s regular trading at $9.89 per share on the NYSE.

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