Prestige Consumer Healthcare Inc.

Good day and thank you for standing by. Welcome to the Quarter 1, 2027 Prestige Consumer Healthcare Incorporated Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. Please be advised that today's conference call is being recorded. I would now like to hand the conference call over to your first speaker today, Phil Terpolilli, Vice President, Investor Relations and Treasury Business Development. Please go ahead.

Thanks, Operator, and thank you to everyone who has joined today. On the call with me are Ron Lombardi, our Chairman, President, and CEO, and Chris Sacco, our CFO and COO. On today's call, we'll review our first quarter fiscal 2027 results, discuss our increased full-year outlook, and then take questions from analysts. A slide presentation accompanies today's call. It can be accessed 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 our earnings release and slide presentation. In 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 supply chain constraints, high inflation, and geopolitical events, which have numerous potential impacts. This means results could change at any time, and the forecasted impact of risk considerations is the 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 SEC filings and our most recent Company 10-Q that was released this morning. I'll now hand it over to our CEO, Ron Lombardi. Ron?

Thanks, Phil, and thanks to everyone for joining us on a busy earnings day. While we are just at the start of our fiscal year, we have a lot to discuss today. Since our call in May, we've completed two acquisitions that are now positioned for long-term success, and we'll walk through both of them shortly. Our business exceeded sales and earning expectations in the first quarter, a testament to our long-term brand building strategy and the strength of our diversified portfolio. We also delivered record adjusted free cash flow, providing additional flexibility for disciplined capital allocation moving forward. With that, let's begin with our first quarter highlights on slide four. Sales of approximately $266 million increased 6.5%, reflecting broad-based strengths across the portfolio. Growth was led by GI, where Dramamine and Fleet continued to deliver long-term consumption gains, as well as strong performance in skin care, led by Compound W. Farateers and Dibrox also posted solid growth, helping offset clear eyes sales that were below our expectations. Results also benefited from retailer order timing, which Chris will discuss in more detail. The quarter also included approximately six million of revenue from the Breathe Right portfolio acquisition. Our strong top line performance translated into solid earnings and free cash flow. Gross margin was largely in line with expectations and adjusted EPS increased to 98 cents. Adjusted free cash flow reached a quarterly record of 83.7 million, further supporting our ability to deploy capital in ways that enhance shareholder value. One of these deployment priorities is M&A, and since our May call, we completed two acquisitions. The Breathe Right Portfolio closed on June 12th, and the acquisition of Macorium in Australia closed on July 1st. I'll discuss our integration progress and the strategic value each brings to Prestige. Our strong cash flow generation is also enabling us to invest in Pillar 5, our sterile ophthalmic manufacturing facility, which will help support additional long-term eye care capacity. Now let's turn to slide five and review the key principles supporting our expected long-term recovery of ClearEyes. At a high level, we remain focused on the actions we believe will best support ClearEyes and return the brand to its leadership position within the eye care category. There are three key elements to this strategy. First, we continue to invest in our recently acquired Pillar 5 facility. These investments are designed to strengthen long-term supply capabilities while maintaining the high quality standards we expect across our portfolio. Second, a key objective for the facility is to support demand while improving supply consistency versus current levels. as we discussed in May, achieving that objective requires actions during fiscal 27 that will continue to create some output variability in the first half of the year as we experienced in Q1 and expect again in Q2. Looking ahead, we believe the facility is positioned for greater stability in the second half, supporting sequential improvements in eye care shipments. Third, as the historical unit share leader in ICARE, ClearEyes has unique volume requirements where we believe in-house manufacturing provides an important strategic advantage. As a result, we expect to further expand capacity at Pillar 5 to fully support these long-term demand requirements and return ClearEyes to its leading market position. Now, let's turn to slide seven and review our recent acquisitions. We are pleased to have closed both the Breathe Right portfolio and Locorium Health Acquisitions. Each transaction brings distinct strengths that we believe will enhance our business over the long term. Starting with Breathe Right, the portfolio is expected to generate approximately $200 million in annual revenue. The majority comes from the flagship Breathe Right brand, where we see multiple opportunities for long-term growth that I'll discuss in a moment. The business also brings a strong financial profile with growth and EBITDA margins that are accretive to prestige. In addition, it supports our long-term sales and earnings growth algorithm while generating tax benefits that enhance future free cash flow. Less than 60 days after closing, we have successfully completed all major integration milestones. As of this week, the business is largely integrated into our operations, running through our systems and our warehouse network, with retailers ordering Breathe Right along with our existing brands. Turning to Lacorium Health, the business is expected to contribute approximately $40 million in annualized revenue, with the majority generated in Australia. Its dermal therapy brand holds a leading position in therapeutic skincare categories, including eczema and cold sore treatments. We believe the brand is well positioned for continued growth and will support the organic growth objectives of our international segment. In July, we welcomed LeCorium's employees into our Care Pharma office, making for a seamless transition, given they were already located in the same building outside Sydney, Australia. The broader integration effort will proceed methodically over the balance of the year. Over time, we also expect to realize additional synergies through distributor optimization, sales integration, and other operating efficiencies that should further enhance profitability. In summary, we've added two highly strategic businesses to our portfolio. The Breathe Right integration is largely complete, while Aquarium will continue to be integrated over the coming quarters. In both cases, our focus is on establishing a strong foundation for long-term growth and value creation. Now, let's turn to slide 8 and discuss how these acquisitions further strengthen our portfolio. One of Prestige's core strengths is the diversity of our portfolio. The diversity helps reduce reliance on any single brand or category while allowing us to allocate resources towards the most attractive growth opportunities and to consistently execute against our long-term growth algorithm. As shown on the right side of the slide, these acquisitions further enhance that diversification. On a pro forma basis, Our portfolio is now even more balanced across eight categories. With the addition of Breathe Right, we've created a new wellness, sleep, and other category, which is primarily comprised of Breathe Right and represents a low teens percentage of a pro forma revenue. Licorium's Dermal Therapy brand further strengthens our skincare category, and we've also updated several category names to better reflect the consumer needs states they address. Now, let's turn to slide nine and discuss the growth opportunities we see for Breathe Right. With roots dating back to the 1990s, BreezeRite is an iconic, category-defining brand with consumer awareness exceeding 90%. Given that strong foundation, we see several drivers of long-term growth. First, the brand has meaningful opportunities to further leverage its heritage and consumer recognition. As shown on the left side of the slide, BreezeRite has successfully done this through campaigns such as StripOn, Looking ahead, we believe social media marketing initiatives can further strengthen brand engagement and drive household penetration. Second is innovation, shown in the center of the slide. At Prestige, we rely on consumer insights to identify opportunities that can meet evolving consumer needs while expanding categories. We expect Breathe Right to be no exception. Recent launches demonstrate this potential. Breathe Right Menthol, introduced in 2025, combines improved breathing with the added benefit of an aromatic scent. Breathe Right Sport, which is launching now, expands the brand into the sports category with a sweat-resistant strip designed to help improve airflow during exercise. Finally, international expansion remains an attractive opportunity. Breedright is sold in more than 20 countries with a strong presence in Western Europe, Australia, and Japan. We see opportunities to drive growth through the same marketing and innovation initiatives I just described, while also benefiting from geographic expansion and long-term synergies across our global portfolio. In summary, Breathe Right is a category leader with an iconic brand, a strong foundation, and multiple avenues for sustained long-term growth. We look forward to updating you on our progress in the quarters ahead. With that, I'll turn the call over to Chris to review our financials.