Exhibit 99.1 

Prestige Consumer Healthcare Inc. Reports Fiscal 2020 Third Quarter and Year-to-Date Results

Revenue $241.6 Million in Q3 Fiscal 2020; Organic Revenue up 0.5% versus Prior Year Q3
GAAP Diluted EPS of $0.75 in Q3 Fiscal 2020; Adjusted EPS of $0.81, Up 11% Versus Prior Year Q3
Year-to-date Cash Flow From Operations of $161.0 Million; Non-GAAP Free Cash Flow of $154.3 Million
Raising FY’20 EPS Outlook to $2.85 to $2.87 From $2.76 to $2.83 Previously

TARRYTOWN, N.Y.--(GLOBE NEWSWIRE)-February 6, 2020-- Prestige Consumer Healthcare Inc. (NYSE:PBH) today reported financial results for its third quarter and year-to-date fiscal 2020 ended December 31, 2019.

“Our third quarter and year to-date results reflect the benefits of our effective and proven three-pillar strategy. Positive organic top-line trends benefitted from continued strong consumption across our portfolio. We continue to generate strong cash flows and a consistent EBITDA margin profile, which allowed us to further reduce debt in Q3 and opportunistically repurchase shares year-to-date. Execution of our brand-building playbook combined with our disciplined and opportunistic capital deployment strategy are enabling us to raise our EPS outlook for full-year fiscal 2020,” said Ron Lombardi, Chief Executive Officer of Prestige Consumer Healthcare.

Third Fiscal Quarter Ended December 31, 2019

Reported revenues in the third quarter of fiscal 2020 were $241.6 million compared to $241.4 million in the third quarter of fiscal 2019. Revenues were up 0.5% on an organic basis, which excludes the effect of foreign currency. The revenue performance for the quarter was driven by a strong international segment performance as well as consumption gains in the Company’s core brand portfolio domestically, partially offset by continued retailer inventory reductions.

Reported gross profit margin in the third quarter fiscal 2020 was 56.9% compared to 57.7% in the prior year comparable period. Excluding transition costs associated with a new logistics provider and location, adjusted gross profit margin was 58.0% in third quarter fiscal 2020, a slight increase versus the prior year third quarter.

Reported net income for the third quarter of fiscal 2020 totaled $38.1 million, and $41.2 million in net income on a non-GAAP adjusted basis, versus the prior year comparable period net income of $38.2 million. Diluted earnings per share were $0.75 for the third quarter fiscal 2020, and $0.81 after one-time adjustments, compared to $0.73 per share in the prior year comparable period.




Adjustments to net income in the third quarter of fiscal 2020 included costs associated with a new logistics provider and location as well as a loss on extinguishment of debt, and the related income tax effects of each adjustment.

First Nine Months of Fiscal 2020 Ended December 31, 2019

Reported revenues for the first nine months of fiscal 2020 were $711.8 million compared to $734.8 million in the first nine months of fiscal 2019. Revenues were up slightly on an organic basis, which excludes the effect of foreign currency and the divestiture of the non-core Household Cleaning segment in the prior year. The revenue performance for the first nine months of fiscal 2020 was driven by strong international segment growth as well as consumption gains in the Company’s core brand portfolio domestically, partially offset by retailer inventory reductions.

Reported gross profit margin in the first nine months of fiscal 2020 was 57.4%, or 57.9% after excluding the one-time effects of the company’s transition to a new logistics provider and location, and compared to 56.8% for the first nine months of fiscal 2019.

Reported net income for the first nine months of fiscal 2020 totaled $105.2 million versus the prior year comparable period net income of $103.5 million. Diluted earnings per share were $2.05 for the first nine months of fiscal 2020, compared to $1.97 per share in the prior year comparable period. Non-GAAP adjusted net income for the first nine months of fiscal 2020 was $109.5 million, versus the prior year comparable period’s adjusted net income of $108.2 million. Non-GAAP adjusted earnings per share were $2.14 per share for the first nine months of fiscal 2020, compared to $2.06 per share in the first nine months of fiscal 2019.

Adjustments to net income in the first nine months of fiscal 2020 included costs associated with a new logistics provider and location as well as a loss on extinguishment of debt, and the related income tax effects of the adjustments. Adjustments to net income in the first nine months of fiscal 2019 included legal and various other costs and a gain associated with the Household Cleaning segment divestiture and the related income tax, as well as accelerated amortization of debt origination costs.




Free Cash Flow and Balance Sheet
The Company's net cash provided by operating activities for the third quarter fiscal 2020 increased to $58.0 million from $43.3 million during the same period a year earlier. Non-GAAP free cash flow for the third quarter fiscal 2020 was $56.3, million compared to $57.2 million in the prior year comparable period. For the first nine months of fiscal 2020 net cash provided by operating activities was $161.0 million compared to $138.4 million during the same period a year earlier. Non-GAAP free cash flow for the first nine months of fiscal 2020 was $154.3 million compared to $154.9 million in the prior year comparable period.




In fiscal 2020 year-to-date, the Company primarily used its cash flow to focus on debt reduction. The Company also fully executed an authorized $50 million share repurchase program during the first two fiscal quarters of 2020.

During the third quarter 2020 the Company completed a $400 million issuance of new senior notes which replaced the same amount of senior notes previously due in fiscal 2022. The new notes extend the maturity to fiscal 2028 at an approximate $1 million annual savings.

The Company's net debt position as of December 31, 2019 was approximately $1.7 billion, compared to approximately $1.8 billion at December 31, 2018. At the end of the third quarter fiscal 2020 the Company's covenant-defined leverage ratio was 4.9x.

Segment Review

North American OTC Healthcare: Segment revenues totaled $214.9 million for the third quarter of fiscal 2020, compared to the prior year comparable quarter's revenues of $216.8 million. The third quarter fiscal 2020 revenue performance was attributable to increased consumption for the Company’s core OTC brands which was more than offset by retailer inventory reductions.

For the first nine months of the current fiscal year, reported revenues for the North American OTC Healthcare segment were $639.6 million compared to $647.5 million in the prior year comparable period. The first nine months of fiscal year 2020 were favorably impacted by increased consumption for the Company’s brand portfolio, but more than offset by inventory reductions at certain key retailers.

International OTC Healthcare: Segment fiscal third quarter 2020 revenues totaled $26.7 million, an approximate 8% increase versus $24.6 million reported in the prior year comparable period. Revenues versus the prior year third quarter benefitted from consumption and shipment growth in Australia and Asia-Pacific, partially offset by unfavorable foreign currency of approximately $1 million.

For the first nine months of the current fiscal year, reported revenues for the International OTC Healthcare segment were $72.2 million versus the prior year’s comparable period’s revenues of $67.4 million, attributable to consumption and shipment growth in the Asia-Pacific region, including the Company’s brand portfolio in Australia and Southeast Asia. Growth was partially offset by unfavorable foreign currency exchange rates of approximately $3 million.

Household Cleaning: The Company sold its Household Cleaning segment on July 2, 2018 and used net proceeds from the divestiture to pay down debt. For the first quarter of fiscal 2019, the Household Cleaning segment generated $19.8 million in revenues, with no reported revenue in subsequent quarters.

Commentary and Outlook for Fiscal 2020

Ron Lombardi, CEO, stated, “We are pleased with our third quarter results on a number of fronts. First, we experienced a continuation of solid consumption trends driven by our brand-building investment strategy. Second, we are more than halfway through the transition to a new third-party logistics provider



and location which is proceeding as planned. Finally, we continue to generate strong cash flows from our leading financial profile, which we used for debt reduction in Q3.”

Mr. Lombardi continued, “Our strong operating results and disciplined use of cash flow during the first nine months of the fiscal year has enabled us to raise our EPS outlook for full-year fiscal 2020. As we look ahead to fiscal 2021, we anticipate continuing to benefit from our diversified portfolio of leading brands which has us well positioned in a continued challenging retailer environment. We expect our robust financial profile, enhanced by our disciplined capital deployment strategy, to continue to create value for our stakeholders. These attributes and our year-to-date performance keep us well positioned to capitalize on our long-term growth prospects,” Mr. Lombardi concluded.

Fiscal 2020 Full-Year Outlook
Revenue$947 to $957 million
Organic Growth Percentage*Approximately Flat
Adjusted E.P.S.*$2.85 to $2.87
Adjusted Free Cash Flow*$200 million or more hh

* See the “About Non-GAAP Financial Measures” section of this report for further presentation information.

Fiscal Q3 2020 Conference Call, Accompanying Slide Presentation and Replay
The Company will host a conference call to review its second quarter results today, February 6, 2020 at 8:30 a.m. ET. The toll-free dial-in numbers are 844-233-9440 within North America and 574-990-1016 outside of North America. The conference ID number is 5006769. The Company provides a live Internet webcast, a slide presentation to accompany the call, as well as an archived replay, all of which can be accessed from the Investor Relations page of the Company's website at www.prestigeconsumerhealthcare.com. The slide presentation can be accessed from the Investor Relations page of the website by clicking on Webcasts and Presentations.

Telephonic replays will be available for one week following the completion of the call and can be accessed at 855-859-2056 within North America and at 404-537-3406 from outside North America. The conference ID is 5006769.

Non-GAAP and Other Financial Information
In addition to financial results reported in accordance with generally accepted accounting principles (GAAP), we have provided certain non-GAAP financial information in this release to aid investors in understanding the Company's performance. Each non-GAAP financial measure is defined and reconciled to its most closely related GAAP financial measure in the “About Non-GAAP Financial Measures” section at the end of this earnings release.

Note Regarding Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of the federal securities laws that are intended to qualify for the Safe Harbor from liability established by the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" generally can be identified by the use of forward-looking terminology such as "assumptions," "target," "guidance," "prospects," "outlook,"



"plans," "projection," "may," "will," "would," "expect," "intend," "estimate," "anticipate," "believe”, "potential," or "continue" (or the negative or other derivatives of each of these terms) or similar terminology. The "forward-looking statements" include, without limitation, statements regarding the expected consumption trends and market share for the Company’s products, costs and timing of the transition to a new logistics provider, the Company's expectations regarding future operating results including revenues, organic growth, earnings per share and free cash flow, the Company’s disciplined capital allocation, the Company’s ability to create value for its stakeholders and reduce debt and the Company’s ability to position itself for long-term growth. These statements are based on management's estimates and assumptions with respect to future events and financial performance and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results could differ materially from those expected as a result of a variety of factors, including the impact of the Company’s advertising and promotional and new product development initiatives, customer inventory management initiatives, general economic and business conditions, fluctuating foreign exchange rates, consumer trends, competitive pressures, the impact of the transition to a new third party logistics provider, and the ability of the Company’s third party manufacturers and logistics providers and suppliers to meet demand for its products and to reduce costs. A discussion of other factors that could cause results to vary is included in the Company's Annual Report on Form 10-K for the year ended March 31, 2019 and other periodic reports filed with the Securities and Exchange Commission.

About Prestige Consumer Healthcare Inc.
Prestige Consumer Healthcare markets, sells, manufactures and distributes consumer healthcare products to retail outlets throughout the U.S. and Canada, Australia, and in certain other international markets. The Company’s diverse portfolio of brands include Monistat® and Summer’s Eve® women's health products, BC® and Goody's® pain relievers, Clear Eyes® eye care products, DenTek® specialty oral care products, Dramamine® motion sickness treatments, Fleet® enemas and glycerin suppositories, Chloraseptic® and Luden's® sore throat treatments and drops, Compound W® wart treatments, Little Remedies® pediatric over-the-counter products, Boudreaux’s Butt Paste® diaper rash ointments, Nix® lice treatment, Debrox® earwax remover, Gaviscon® antacid in Canada, and Hydralyte® rehydration products and the Fess® line of nasal and sinus care products in Australia. Visit the Company's website at www.prestigeconsumerhealthcare.com.





Prestige Consumer Healthcare Inc.
Condensed Consolidated Statements of Income and Comprehensive Income
(Unaudited)
 Three Months Ended December 31, Nine Months Ended December 31,
(In thousands, except per share data)2019 20182019 2018
Total revenues$241,552   $241,414  $711,775  $734,751  
Cost of Sales   
Cost of sales excluding depreciation102,900   100,997  300,318   313,713  
Cost of sales depreciation1,157  1,182  3,144  3,708  
Cost of sales104,057  102,179  303,462  317,421  
Gross profit137,495   139,235  408,313   417,330  
Operating Expenses   
Advertising and promotion33,559   34,504  107,027   108,657  
General and administrative21,308   20,485  65,528   68,460  
Depreciation and amortization6,224   6,705  18,520   20,545  
Gain on divestiture—  —  —  (1,284) 
Total operating expenses61,091   61,694  191,075   196,378  
Operating income76,404   77,541  217,238   220,952  
Other (income) expense   
Interest income(245) (39) (320) (172) 
Interest expense24,520   26,366  74,092   79,509  
Other (income) expense, net(580) 218  695  640  
Loss on extinguishment of debt2,155  —  2,155  —  
Total other expense25,850   26,545  76,622   79,977  
Income before income taxes50,554  50,996  140,616  140,975  
Provision for income taxes12,496   12,829  35,381   37,501  
Net income $38,058   $38,167  $105,235   $103,474  
Earnings per share:   
Basic$0.76     $0.74  $2.07     $1.99  
Diluted$0.75     $0.73  $2.05     $1.97  
Weighted average shares outstanding:   
Basic50,378   51,881  50,840   52,119  
Diluted50,831   52,202  51,226   52,431  
Comprehensive income, net of tax:
Currency translation adjustments3,497  (2,020) (311) (7,139) 
Total other comprehensive income (loss)3,497  (2,020) (311) (7,139) 
Comprehensive income$41,555  $36,147  $104,924  $96,335  




Prestige Consumer Healthcare Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
December 31, 2019 March 31, 2019
Assets
Current assets 
Cash and cash equivalents$28,591  $27,530  
Accounts receivable, net of allowance of $21,475 and $12,965, respectively144,502  148,787  
Inventories121,363  119,880  
Prepaid expenses and other current assets5,913  4,741  
Total current assets300,369   300,938  
Property, plant and equipment, net53,233  51,176  
Operating lease right-of-use asset31,342  —  
Finance lease right-of-use assets, net5,895  —  
Goodwill577,635  578,583  
Intangible assets, net2,491,539  2,507,210  
Other long-term assets4,189  3,129  
Total Assets$3,464,202     $3,441,036  
Liabilities and Stockholders' Equity   
Current liabilities   
Accounts payable$50,408  $56,560  
Accrued interest payable14,482  9,756  
Operating lease liabilities, current portion6,377  —  
Finance lease liabilities, current portion1,159  —  
Other accrued liabilities76,610  60,663  
Total current liabilities149,036   126,979  
Long-term debt, net1,701,313  1,798,598  
Deferred income tax liabilities407,776   399,575  
Long-term operating lease liabilities, net of current portion26,200  —  
Long-term finance lease liabilities, net of current portion4,725  —  
Other long-term liabilities18,658  20,053  
Total Liabilities2,307,708   2,345,205  
Stockholders' Equity   
Preferred stock - $0.01 par value   
Authorized - 5,000 shares   
Issued and outstanding - None—   —  
Common stock - $0.01 par value   
Authorized - 250,000 shares         
Issued - 53,779 shares at December 31, 2019 and 53,670 shares at March 31, 2019537  536  
Additional paid-in capital485,838  479,150  
Treasury stock, at cost - 3,525 shares at December 31, 2019 and 1,871 shares at March 31, 2019(110,878) (59,928) 
Accumulated other comprehensive loss, net of tax(26,058) (25,747) 
Retained earnings807,055  701,820  
Total Stockholders' Equity1,156,494     1,095,831  
Total Liabilities and Stockholders' Equity$3,464,202     $3,441,036  




Prestige Consumer Healthcare Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
 Nine Months Ended December 31,
(In thousands)2019 2018
Operating Activities 
Net income $105,235  $103,474  
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization21,664  24,253  
Gain on divestiture—  (1,284) 
Loss on disposal of property and equipment184  197  
Deferred income taxes7,383  3,309  
Amortization of debt origination costs2,766  4,543  
Stock-based compensation costs5,682  6,160  
Loss on extinguishment of debt2,155  —  
Non-cash operating lease cost6,117  —  
Interest expense relating to ROU assets34  —  
Other—  247  
Changes in operating assets and liabilities:
Accounts receivable4,624  5,398  
Inventories(817) (11,081) 
Prepaid expenses and other current assets(879) 4,073  
Accounts payable(6,091) (12,787) 
Accrued liabilities20,724  13,260  
Operating lease liabilities(6,430) —  
Other(1,353) (1,325) 
Net cash provided by operating activities160,998   138,437  
Investing Activities   
Purchases of property, plant and equipment(9,055) (7,139) 
Escrow receipt750  —  
Proceeds from divestiture—  65,912  
Net cash (used in) provided by investing activities(8,305)  58,773  
Financing Activities   
Proceeds from issuance of 5.125% Senior Notes400,000  —  
Repayment of 5.375% Senior Notes(400,000) —  
Term loan repayments(21,000) (155,000) 
Borrowings under revolving credit agreement45,000  45,000  
Repayments under revolving credit agreement(120,000) (45,000) 
Payment of debt costs(5,793) —  
Payments of finance leases(252) —  
Proceeds from exercise of stock options1,007  2,931  
Fair value of shares surrendered as payment of tax withholding(974) (2,281) 
Repurchase of common stock(49,976) (49,978) 
Net cash used in financing activities(151,988)  (204,328) 
Effects of exchange rate changes on cash and cash equivalents356  (758) 
Increase in cash and cash equivalents1,061   (7,876) 
Cash and cash equivalents - beginning of period27,530  32,548  
Cash and cash equivalents - end of period$28,591   $24,672  
Interest paid$66,305  $69,955  
Income taxes paid$21,212  $24,404  




Prestige Consumer Healthcare Inc.
Condensed Consolidated Statements of Income
Business Segments
(Unaudited)
 Three Months Ended December 31, 2019
(In thousands)North American OTC HealthcareInternational OTC HealthcareHousehold
Cleaning
Consolidated
Total segment revenues*$214,892  $26,660  $—  $241,552  
Cost of sales93,937  10,120  —  104,057  
Gross profit120,955  16,540  —  137,495  
Advertising and promotion29,025  4,534  —  33,559  
Contribution margin$91,930  $12,006  $—  103,936  
Other operating expenses  27,532  
Operating income  76,404  
Other expense  25,850  
Income before income taxes50,554  
Provision for income taxes  12,496  
Net income$38,058  
*Intersegment revenues of $0.6 million were eliminated from the North American OTC Healthcare segment.

 Nine Months Ended December 31, 2019
(In thousands)North American OTC HealthcareInternational OTC HealthcareHousehold
Cleaning
Consolidated
Total segment revenues*$639,554  $72,221  $—  $711,775  
Cost of sales275,679  27,783  —  303,462  
Gross profit 363,875  44,438  —  408,313  
Advertising and promotion94,634  12,393  —  107,027  
Contribution margin$269,241  $32,045  $—  301,286  
Other operating expenses      84,048  
Operating income      217,238  
Other expense      76,622  
Income before income taxes140,616  
Provision for income taxes      35,381  
Net income$105,235  
*Intersegment revenues of $2.1 million were eliminated from the North American OTC Healthcare segment.



 Three Months Ended December 31, 2018
(In thousands)North American OTC HealthcareInternational OTC HealthcareHousehold
Cleaning
Consolidated
Total segment revenues*$216,776  $24,638  $—  $241,414  
Cost of sales91,594  10,585  —  102,179  
Gross profit 125,182  14,053  —  139,235  
Advertising and promotion30,316  4,188  —  34,504  
Contribution margin$94,866  $9,865  $—  104,731  
Other operating expenses      27,190  
Operating income      77,541  
Other expense      26,545  
Income before income taxes50,996  
Provision for income taxes      12,829  
Net income$38,167  
* Intersegment revenues of $1.3 million were eliminated from the North American OTC Healthcare segment.

 Nine Months Ended December 31, 2018
(In thousands)North American OTC HealthcareInternational OTC HealthcareHousehold
Cleaning
Consolidated
Total segment revenues*$647,501  $67,439  $19,811  $734,751  
Cost of sales272,754  28,079  16,588  317,421  
Gross profit 374,747  39,360  3,223  417,330  
Advertising and promotion96,899  11,328  430  108,657  
Contribution margin$277,848  $28,032  $2,793  308,673  
Other operating expenses      87,721  
Operating income      220,952  
Other expense      79,977  
Income before income taxes140,975  
Provision for income taxes      37,501  
Net income$103,474  
* Intersegment revenues of $5.6 million were eliminated from the North American OTC Healthcare segment.





About Non-GAAP Financial Measures
In addition to financial results reported in accordance with GAAP, we disclose certain Non-GAAP financial measures ("NGFMs"), including, but not limited to, Non-GAAP Organic Revenues, Non-GAAP Organic Revenue Growth Percentage, Non-GAAP Adjusted Gross Margin, Non-GAAP Adjusted Gross Margin Percentage, Non-GAAP Adjusted General and Administrative Expense, Non-GAAP Adjusted General and Administrative Expense Percentage, Non-GAAP EBITDA, Non-GAAP EBITDA Margin, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted EBITDA Margin, Non-GAAP Adjusted Net Income, Non-GAAP Adjusted EPS, Non-GAAP Free Cash Flow, Non-GAAP Adjusted Free Cash Flow and Net Debt. We use these NGFMs internally, along with GAAP information, in evaluating our operating performance and in making financial and operational decisions. We believe that the presentation of these NGFMs provides investors with greater transparency, and provides a more complete understanding of our business than could be obtained absent these disclosures, because the supplemental data relating to our financial condition and results of operations provides additional ways to view our operation when considered with both our GAAP results and the reconciliations below. In addition, we believe that the presentation of each of these NGFMs is useful to investors for period-to-period comparisons of results in assessing shareholder value, and we use these NGFMs internally to evaluate the performance of our personnel and also to evaluate our operating performance and compare our performance to that of our competitors.
These NGFMs are not in accordance with GAAP, should not be considered as a measure of profitability or liquidity, and may not be directly comparable to similarly titled NGFMs reported by other companies. These NGFMs have limitations and they should not be considered in isolation from or as an alternative to their most closely related GAAP measures reconciled below. Investors should not rely on any single financial measure when evaluating our business. We recommend investors review the GAAP financial measures included in this earnings release. When viewed in conjunction with our GAAP results and the reconciliations below, we believe these NGFMs provide greater transparency and a more complete understanding of factors affecting our business than GAAP measures alone.

NGFMs Defined
We define our NGFMs presented herein as follows:
Non-GAAP Organic Revenues: GAAP Total Revenues excluding revenues associated with divestiture, allocated cost that remain after divestiture and impact of foreign currency exchange rates in the periods presented.
Non-GAAP Organic Revenue Growth Percentage: Calculated as the change in Non-GAAP Organic Revenues from prior year divided by prior year Non-GAAP Organic Revenues.
Non-GAAP Adjusted Gross Margin: GAAP Gross Profit minus certain transition and other costs associated with new warehouse and divestiture.
Non-GAAP Adjusted Gross Margin Percentage: Calculated as Non-GAAP Adjusted Gross Margin divided by GAAP Total Revenues.
Non-GAAP Adjusted General and Administrative Expense: GAAP General and Administrative expenses minus certain transition and divestiture-related costs.
Non-GAAP Adjusted General and Administrative Expense Percentage: Calculated as Non-GAAP Adjusted General and Administrative expense divided by GAAP Total Revenues.
Non-GAAP EBITDA: GAAP Net Income (Loss) before net interest expense (income), income taxes provision (benefit), and depreciation and amortization.
Non-GAAP EBITDA Margin: Calculated as Non-GAAP EBITDA divided by GAAP Total Revenues.
Non-GAAP Adjusted EBITDA: Non-GAAP EBITDA before certain transition, other costs associated with new warehouse and divestiture, and loss on extinguishment of debt.
Non-GAAP Adjusted EBITDA Margin: Calculated as Non-GAAP Adjusted EBITDA divided by GAAP Total Revenues.
Non-GAAP Adjusted Net Income: GAAP Net Income (Loss) before certain transition, other costs associated with new warehouse and divestiture, and loss on extinguishment of debt.
Non-GAAP Adjusted EPS: Calculated as Non-GAAP Adjusted Net Income, divided by the weighted average number of common and potential common shares outstanding during the period.
Non-GAAP Free Cash Flow: GAAP Net cash provided by operating activities less cash paid for capital expenditures.
Non-GAAP Adjusted Free Cash Flow: Non-GAAP Free Cash Flow plus cash payments made for transition and other costs associated with new warehouse and divestiture.
Net Debt: Calculated as total principal amount of debt outstanding ($1,717,000 at December 31, 2019) less cash and cash equivalents ($28,591 at December 31, 2019). Amounts in thousands.

The following tables set forth the reconciliations of each of our NGFMs to their most directly comparable financial measures presented in accordance with GAAP.




Reconciliation of GAAP Total Revenues to Non-GAAP Organic Revenues and related Non-GAAP Organic Revenue Growth percentage:
Three Months Ended December 31, Nine Months Ended December 31,
2019201820192018
(In thousands)
GAAP Total Revenues$241,552     $241,414  $711,775  $734,751  
Revenue Growth0.1 %(3.1)%
Adjustments:
Revenues associated with divestiture—  —  —  (19,811) 
Allocated costs that remain after divestiture—  —  —  (659) 
Impact of foreign currency exchange rates—  (977) —  (3,534) 
Total adjustments—  (977) —  (24,004) 
Non-GAAP Organic Revenues$241,552  $240,437  $711,775  $710,747  
Non-GAAP Organic Revenue Growth 0.5 %0.1 %


Reconciliation of GAAP Gross Profit to Non-GAAP Adjusted Gross Margin and related Non-GAAP Adjusted Gross Margin percentage:
Three Months Ended December 31, Nine Months Ended December 31,
2019201820192018
(In thousands)
GAAP Total Revenues$241,552     $241,414  $711,775  $734,751  
GAAP Gross Profit$137,495   $139,235  $408,313     $417,330  
GAAP Gross Profit as a Percentage of GAAP Total Revenue56.9 %57.7 %57.4 %56.8 %
Adjustments:
Transition and other costs associated with new warehouse and divestiture (1)
2,555  —  3,962  170  
Total adjustments2,555  —  3,962  170  
Non-GAAP Adjusted Gross Margin$140,050  $139,235  $412,275  $417,500  
Non-GAAP Adjusted Gross Margin as a Percentage of GAAP Total Revenues58.0 %57.7 %57.9 %56.8 %
(1) Items related to new warehouse represent costs to transition to the new warehouse and duplicate costs incurred during the transition. Items related to divestiture represent costs related to divesting of assets sold.




















Reconciliation of GAAP General and Administrative Expense and related GAAP General and Administrative Expense percentage to Non-GAAP Adjusted General and Administrative Expense and related Non-GAAP Adjusted General and Administrative Expense percentage:
Three Months Ended December 31, Nine Months Ended December 31,
2019201820192018
(In thousands)
GAAP General and Administrative Expense$21,308   $20,485  $65,528   $68,460  
GAAP General and Administrative Expense as a Percentage of GAAP Total Revenue8.8 %8.5 %9.2 %9.3 %
Adjustments:
Transition and other costs associated with divestiture (1)
—  —  —  4,272  
Total adjustments—  —  —  4,272  
Non-GAAP Adjusted General and Administrative Expense$21,308  $20,485  $65,528  $64,188  
Non-GAAP Adjusted General and Administrative Expense Percentage as a Percentage of GAAP Total Revenues8.8 %8.5 %9.2 %8.7 %
(1) Items related to divestiture represent costs related to divesting of assets sold, including (but not limited to) costs to exit or convert contractual obligations, severance and consulting costs; and certain costs related to the consummation of the divestiture process such as legal and other related professional fees.

Reconciliation of GAAP Net Income to Non-GAAP EBITDA and related Non-GAAP EBITDA Margin, Non-GAAP Adjusted EBITDA and related Non-GAAP Adjusted EBITDA Margin:
Three Months Ended December 31, Nine Months Ended December 31,
2019201820192018
(In thousands)
GAAP Net Income $38,058   $38,167  $105,235   $103,474  
Interest expense, net24,275  26,327  73,772  79,337  
Provision for income taxes12,496   12,829  35,381   37,501  
Depreciation and amortization7,381  7,887  21,664  24,253  
Non-GAAP EBITDA82,210  85,210  236,052  244,565  
Non-GAAP EBITDA Margin34.0 %35.3 %33.2 %33.3 %
Adjustments:
Transition and other costs associated with new warehouse and divestiture in Cost of Goods Sold (1)
2,555  —  3,962  170  
Transition and other costs associated with divestiture in General and Administrative Expense (2)
—  —  —  4,272  
Loss on extinguishment of debt2,155  —  2,155  —  
Gain on divestiture—  —  —  (1,284) 
Total adjustments4,710  —  6,117  3,158  
Non-GAAP Adjusted EBITDA$86,920  $85,210  $242,169  $247,723  
Non-GAAP Adjusted EBITDA Margin36.0 %35.3 %34.0 %33.7 %
(1) Items related to new warehouse represent costs to transition to the new warehouse and duplicate costs incurred during the transition. Items related to divestiture represent costs related to divesting of assets sold.
(2) Items related to divestiture represent costs related to divesting of assets sold, including (but not limited to) costs to exit or convert contractual obligations, severance and consulting costs; and certain costs related to the consummation of the divestiture process such as legal and other related professional fees.





Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income and related Non-GAAP Adjusted Earnings Per Share:
Three Months Ended December 31, Nine Months Ended December 31,
20192019 Adjusted EPS20182018 Adjusted EPS20192019 Adjusted EPS20182018 Adjusted EPS
(In thousands, except per share data)
GAAP Net Income $38,058  $0.75  $38,167  $0.73  $105,235  $2.05  $103,474  $1.97  
Adjustments:
Transition and other costs associated with new warehouse and divestiture in Cost of Goods Sold (1)
2,555  0.05  —  —  3,962  0.08  170  —  
Transition and other costs associated with divestiture in General and Administrative Expense (2)
—  —  —  —  —  —  4,272  0.08  
Loss on extinguishment of debt2,155  0.04  —  —  2,155  0.04  —  
Gain on divestiture—  —  —  —  —  —  (1,284) (0.02) 
Accelerated amortization of debt origination costs—  —  —  —  —  —  706  0.01  
Tax impact of adjustments (3)
(1,196) (0.02) —  —  (1,554) (0.03) 420  0.01  
Normalized tax rate adjustment (4)
(345) (0.01) —  —  (335) (0.01) 415  0.01  
Total adjustments3,169  0.06  —  —  4,228  0.08  4,699  0.09  
Non-GAAP Adjusted Net Income
and Adjusted EPS
$41,227  $0.81  $38,167  $0.73  $109,463  $2.14  $108,173  $2.06  
Note: Amounts may not add due to rounding.
(1) Items related to new warehouse represent costs to transition to the new warehouse and duplicate costs incurred during the transition. Items related to divestiture represent costs related to divesting of assets sold.
(2) Items related to divestiture represent costs related to divesting of assets sold, including (but not limited to) costs to exit or convert contractual obligations, severance and consulting costs; and certain costs related to the consummation of the divestiture process such as legal and other related professional fees.
(3) The income tax adjustments are determined using applicable rates in the taxing jurisdictions in which the above adjustments relate and includes both current and deferred income tax expense (benefit) based on the specific nature of the specific Non-GAAP performance measure.
(4) Income tax adjustment to adjust for discrete income tax items.

Reconciliation of GAAP Net Income to Non-GAAP Free Cash Flow and Non-GAAP Adjusted Free Cash Flow:
Three Months Ended December 31, Nine Months Ended December 31,
2019201820192018
(In thousands)
GAAP Net Income $38,058   $38,167  $105,235   $103,474  
Adjustments:
Adjustments to reconcile net income to net cash provided by operating activities as shown in the Statement of Cash Flows17,089  14,371  45,985  37,425  
Changes in operating assets and liabilities as shown in the Statement of Cash Flows2,851  (9,208) 9,778  (2,462) 
Total adjustments19,940  5,163  55,763  34,963  
GAAP Net cash provided by operating activities57,998  43,330  160,998  138,437  
Purchases of property and equipment(3,233) (2,065) (9,055) (7,139) 
Non-GAAP Free Cash Flow54,765  41,265  151,943  131,298  
Transition and other payments associated with new warehouse and divestiture (1)
1,517  3,284  2,327  10,902  
Additional income tax payments associated with divestiture—  12,656  —  12,656  
Non-GAAP Adjusted Free Cash Flow$56,282  $57,205  $154,270  $154,856  
(1) Payments related to new warehouse represent costs to transition to the new warehouse and duplicate costs incurred during the transition. Payments related to divestiture represent costs related to divesting of assets sold, including (but not limited to) costs to exit or convert contractual obligations, severance and consulting costs; and certain costs related to the consummation of the divestiture process such as legal and other related professional fees.





Outlook for Fiscal Year 2020:

Reconciliation of Projected GAAP EPS to Projected Non-GAAP Adjusted EPS:
2020 Projected EPS
LowHigh
Projected FY'20 GAAP EPS$2.67  $2.69  
Adjustments:
Integration of new logistics provider (1)
0.15  0.15  
Loss on extinguishment of debt0.03  0.03  
Total Adjustments0.18  0.18  
Projected Non-GAAP Adjusted EPS$2.85  $2.87  
(1) Represents costs to integrate our new logistics provider into our operations.

Reconciliation of Projected GAAP Net cash provided by operating activities to Projected Non-GAAP Adjusted Free Cash Flow:
2020 Projected Free Cash Flow
(In millions)
Projected FY'20 GAAP Net cash provided by operating activities$205  
Additions to property and equipment for cash(15) 
Projected Non-GAAP Free Cash Flow190  
Payments associated with integration of new logistics provider10  
Projected Non-GAAP Adjusted Free Cash Flow$200  







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