Prestige Brands Holdings Inc. returned to a profit in its fiscal fourth quarter, benefiting from lower operating expenses and better sales of over-the-counter health care products.
The company, which distributes over-the-counter and household cleaning products like Clear Eyes and PediaCare, reported net income of $19.3 million, or 37 cents per share, for the three months ended March 31. That compares with a loss of $15,000, or breakeven results, a year earlier.
Taking out a deferred tax benefit and other items, earnings were 36 cents per share. Analysts, on average, expected earnings of 34 cents per share, according to a FactSet survey.
Total operating expenses fell to $37.9 million from $45.9 million. Prestige also had a smaller debt extinguishment loss in the current quarter.
Revenue increased 15 percent to $154.5 million from $134 million, with revenue for the over-the-counter health care unit up 22 percent. Wall Street was looking for $157.4 million in revenue.
The health care segment’s performance has been helped by the acquisition of some brands from GlaxoSmithKline PLC.
Last year Prestige paid $660 million to buy 17 over-the-counter product brands from GlaxoSmithKline, including the Beano, Gaviscon and Tagamet gastrointestinal brands, BC and Goody’s pain relievers, and Sominex sleep aids.
Revenue for core over-the-counter brands climbed 9.3 percent in the quarter.
Revenue for the household cleaning division — which makes up less than 15 percent of total revenue — fell 14.5 percent to $20.7 million.
For the year, Prestige earned $65.5 million, or $1.27 per share. In the previous year the Tarrytown, N.Y., company earned $37.2 million, or 73 cents per share. Adjusted earnings were $1.50 per share.
Annual revenue rose 41 percent to $623.6 million from $441.1 million.
