Prestige Consumer Healthcare Inc.

Good morning and welcome to the Prestige Consumer Healthcare Fiscal 2023 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Phil Terpiloli, Vice President of Investor Relations and Treasurer. Please go ahead.

Phil Terpiloli Thanks, operator. Thank you to everyone who's joined today. On the call to me are Ron Lombardi, our Chairman, President, and CEO, and Christine Sacco, our CFO. On today's call, we'll review our first quarter fiscal 23 results, discuss our full year outlook, and take questions from analysts. The slide presentation accompanies today's call. We can access it by visiting prestigeconsumerhealthcare.com, clicking on the Investors link, and then on today's webcast and presentation. Remember, some of the information contained in the presentation today includes non-GAAP financial measures. Reconciliations to the nearest GAAP financial measures are included in the earnings release and slide presentation. On today's call, management will make forward-looking statements around risks and uncertainties, which are detailed in a complete safe harbor disclosure on page two of the slide presentation that accompanies the call. These are important to review and contemplate. Business environment uncertainty remains heightened due to COVID-19 and various other geopolitical factors which have numerous potential impacts. This means results could change at any time, and the forecasted impact of risk considerations is a best estimate based on the information available as of today's date. Further information concerning risk factors and cautionary statements are available in our most recent FCC filings and most recent Company 10-K. I'll now hand it over to our CEO, Ron Lombardi. Ron?

Thanks, Phil. Let's begin on slide five. We are pleased with our start to the year, which continues the momentum from our record fiscal 22, which we completed back in March. This success is driven by the business attributes of our leading 100% consumer healthcare platform and the execution of our time-tested value creation strategy. Thanks to this strategy, we achieved net sales of $277 million in Q1, the highest level of quarterly sales in our company's history and slightly ahead of what we anticipated back in May. Our organic business trends were healthy throughout our portfolio, aided by consumer demand and our long-term brand building. This included a strong performance from our international segment and the HydroLite brand, which I'll touch on in a bit more detail momentarily. Our strong sales translated into strong profitability, generating $1.09 in diluted EPS and nearly $60 million in free cash flow. We also achieved an approximate 34% EBITDA margin despite the volatile supply chain and inflationary environment affecting our industry. Our predictable and consistent cash flow profile continues to enable our disciplined capital allocation strategy. In Q1, we executed a portion of our share repurchase program while maintaining a leverage ratio of 3.8 times. Now, let's turn to page six and discuss Hydrolyte in more detail. Hydrolyte continues to lead the robust growth of our international segment thanks to its leading number one share position and proven brand strategy. The Hydrolyte brand defines oral hydration on Australia, representing over 90% of the category. The majority of Australians recognize the brand immediately thanks to its great tasting profile, efficacy, and our proven brand building efforts. In Q1, all of Hydrolyte's various form factors, liquids, powders, tablets, and more, grew consumption in the mid-double digits versus prior year. As shown on the left side of the page, this impressive growth is a continuation of a much longer trend for the brand, driving both increased household penetration and usage over time. Our Hydrolyte brand has been synonymous with oral hydration for Australians over the last 20 years, and we see continued opportunity ahead. We continue to use targeted messaging, extend usage occasions, and execute various other marketing tactics. This leaves us well-positioned to drive growth of the category and the Hydrolyte brand into the future. Now let's turn to slide seven. Our long-term sales growth. is enabled by very strong financial profile that enables us to invest behind our brand building, including innovation. Each of our brands operate with a multi-year product development pipeline designed to ensure that we continue to understand and meet the needs of consumers. When we introduce new products, they are typically designed by using consumer insights to capitalize on market opportunities which drive brand and category growth. These products are designed in new and efficacious ways to help consumers take care of their health and ensure a superior experience. As the innovations come to market, we work with our retail partners to provide key channel support to drive consumer awareness of these new items. Featured on the left are two recent examples of the strategy at work. The new Summer's Eve spa line expands the brand into luxurious self-care that consumers seek. Since launching, we've turned on an impressive omni-channel campaign to inform consumers of the spa difference in both a traditional wash form and a serum designed for skin hydration. Clear Eyes Allergy is a new prescription strength once-a-day drop designed for relief from indoor and outdoor allergies. Leveraging our social media influencers, such as Hillary Roda, shown here, we are driving consumer awareness across TV and digital channels during the summer allergy season. So in summary, the products shown here are just two recent examples of our time-tested innovation playbook, and we look forward to new products driving growth going forward. Now, I'll pass it to Chris to walk through the financials.