Energizer 2011 Annual Report Download - page 2

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FINANCIAL HIGHLIGHTS
Energizer Holdings, Inc. is a consumer goods company operating globally in the broad categories of personal care and
household products. e Personal Care Division oers a diversied range of consumer products in the wet shave, skin care,
feminine care and infant care categories with well-established brand names such as Schick®, Wilkinson Sword® and Personna®
men’s and women’s shaving systems and disposable razors; Edge® and Skintimate® shave preparations; Playtex® tampons, infant
feeding, Diaper Genie® and gloves; Banana Boat® and Hawaiian Tropic® sun care products; and Wet Ones® moist wipes. e
Household Products Division oers consumers a broad range of portable power solutions and lighting products, anchored by the
universally recognized Energizer® and Eveready® brands. With distribution in more than 160 countries, the Company markets
its products throughout most of the world. Energizer is traded on the NYSE under the ticker symbol ENR.
In addition to its earnings presented in accordance with generally accepted accounting principles (GAAP), Energizer has presented certain non-GAAP measures in the table
above, which it believes are useful to readers in addition to traditional GAAP measures. ese measures should be considered as an alternative to, but not superior to or as a
substitute for, the comparable GAAP measures.
(a) Earnings are presented with and without the impact of a write-up on inventory acquired through the purchase of American Safety Razor in scal 2011, the purchase of
Edge® and Skintimate® shave preparation brands in 2009 and the purchase of Playtex Products, Inc. in 2008. GAAP requires inventory to be valued at fair market value
less the cost of disposal and a prot allowance for the selling eort, as opposed to its historical manufacturing cost. As a result, there was an allocation of purchase price to
acquired inventory in 2011, 2009 and 2008. 2011 includes a charge of $7.0 million, pre-tax, or $4.4 million, after-tax, relating to higher than historical manufacturing cost.
2009 includes a charge of $3.7 million, pre-tax, or $2.3 million, after-tax, related to higher than historical manufacturing cost. 2008 includes a charge of $27.5 million, pre-tax,
or $16.5 million, after-tax, related to higher than historical manufacturing cost. Inventory value and cost of product sold for all product manufactured after the acquisition date
are based upon actual production costs, as dictated by GAAP. Energizer believes presenting earnings excluding the inventory write-up is useful to investors as an additional
basis for comparison to the prior and subsequent periods.
(b) Free cash ow is dened as net cash provided by operating activities net of additions to property, plant and equipment. e Company views free cash ow as an important
indicator of its ability to repay debt, fund growth and return cash to shareholders. Free cash ow is not a measure of the residual cash ow that is available for discretionary
expenditures, since the Company has certain non-discretionary obligations, such as debt service, that are not deducted from the measure.
YEAR ENDED SEPTEMBER 30, 2011 2010 2009 2008 2007
(in millions, except per share data)
NET EARNINGS
Net Earnings, excluding inventory write-up $ 265.6 $ 403.0 $ 300.1 $ 345.8 $ 321.4
Acquisition inventory write-up, net of taxes(a) (4.4) (2.3) (16.5)
Net Earnings $ 261.2 $ 403.0 $ 297.8 $ 329.3 $ 321.4
DILUTED EARNINGS PER SHARE
Net Earnings, excluding inventory write-up $ 3.78 $ 5.72 $ 4.76 $ 5.87 $ 5.51
Acquisition inventory write-up, net of taxes(a) (.06) (0.04) (0.28)
Net Earnings $ 3.72 $ 5.72 $ 4.72 $ 5.59 $ 5.51
Diluted Weighted-average Shares Outstanding 70.3 70.5 63.1 58.9 58.3
FREE CASH FLOW(b)
Operating Cash Flow $ 412.5 $ 652.4 $ 489.2 $466.5 $ 445.3
Capital Expenditures (98.0) (108.7) (139.7) (160.0) (88.6)
Free Cash Flow $ 314.5 $ 543.7 $ 349.5 $ 306.5 $ 356.7
NET SALES
in billions
EARNINGS PER SHARE
2011 2011$4.65
2009 2009$4.00 $4.72
2010 2010$4.25 $5.72
2008 2008$4.33 $5.59
2007 2007$3.37 $5.51
$3.72