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Energizer: Press Release, Results Of Operations And Financial Condition Exhibit

The following excerpt is from the company's SEC filing.

Exhibit 99.1

Edgewell Personal Care Company

1350 Timberlake Manor Parkway

St. Louis, MO 63017

FOR IMMEDIATE RELEASE

Company Contact

Chris Gough

Vice President, Investor Relations

203-944-5706

Chris.Gough@Edgewell.com

Edgewell Personal Care Company Announces

Fourth

Quarter and Fiscal 2015 Results and Provides 2016 Outlook

St. Louis —

November 13, 2015

—Edgewell Personal Care Company (NYSE: EPC) today announced results for the full year and fourth quarter, which ended September 30, 20 15. This is Edgewell's first quarter following the spin-off of its Household Products business on July 1, 2015. The historical results for the Household Products business are presented as discontinued operations.

Executive Summary

4Q Adjusted EBITDA was

$83.0 million

; full-year adjusted normalized EBITDA was

$462.2 million

Full year organic net sales declined

, while 4Q organic net sales decreased

, including an approximate 200 basis point decline due to international go-to-market changes.

4Q Adjusted Diluted EPS from continuing operations was

4Q GAAP Earnings Per Share (EPS) was a loss from continuing operations of

, which includes a non-cash intangible asset impairment pre-tax charge of

$318.2 million

Repurchased 2.2 million shares in the quarter for $187.6 million.

The Company's outlook for fiscal 2016 is for relatively flat organic sales and $440-$460 million in adjusted EBITDA, including a $15-$20 million negative impact from currency.

"We made significant progress during Edgewell's first quarter as a standalone company. We navigated operational complexities related to the spin-off, while taking the actions needed for long-term success," said David Hatfield, Edgewell's President and Chief Executive Officer. "During the quarter we executed against our international go-to-market initiatives and invested in our brands, actions that will help position us well strategically for the future. Our top and bottom-line results reflect those actions, and while our results for the quarter came in below expectations, they do not change our view of 2016 or affect the long-term strategy that we laid out at our analyst day in June 2015. We are confident that we are taking the right steps to position our company for future growth and success." Mr. Hatfield continued, "We are committed to returning capital to our shareholders and during the quarter repurchased more than 2 million shares."

The Company reports results on a GAAP and adjusted "Non-GAAP" basis, as defined within this release. Adjusted measures are reconciled to the most directly comparable GAAP measures later in this release. All comparisons are with the same period in the prior fiscal year unless otherwise stated.

The Company analyzes its net revenue and segment profit on an organic basis to better measure the comparability of results between periods. Organic net sales and segment profit exclude the impact of changes in foreign currency, the impact of acquisitions, and the period-over-period change in Venezuela and Industrial results. This information is provided because these fluctuations can distort the underlying change in net sales and segment profit either positively or negatively. See Non-GAAP reconciliations later in this release.

Historical results on a continuing operations basis include certain costs associated with supporting the Household Products business that are not eligible to be reported in discontinued operations. These costs affect selling, general and administrative expense ("SG&A"), interest expense, spin costs, restructuring and tax. As a result, EPS and EBITDA on both a GAAP and Non-GAAP basis for this quarter and fiscal year are not comparable to the prior year, and will not be comparable as we move through each of the first three quarters of fiscal 2016. To address this, we have provided normalized EBITDA reflecting pro forma adjustments to SG&A. See Non-GAAP reconciliations later in this release.

Fiscal 4Q 2015 Operating Results (Unaudited)

Net sales

, with an organic net sales decline of

. The decline was driven by international go-to-market and other transition impacts and higher trade and sales promotion spending in North America and Europe. Excluding the international go-to-market impacts, organic net sales were down approximately 4.7%.

In North America, trade and price promotion investments increased in the current year to support the Playtex Sport branded pads and liners launch and promotional activities across all segments within Wet Shave. In addition, prior year net sales were favorably impacted by lower than anticipated coupon redemption and trade promotion activity. The decrease in net sales related to trade and sales promotion spending was partially offset in the U. S. by both category performance and improvements in our market shares in Wet Shave, Feminine Care and Sun Care.

To compete more effectively as an independent company, we have increased our use of third-party distributors and wholesalers, and have decreased or eliminated our business operations in certain countries, consistent with our international go-to-market strategy. Within this press release we discuss go-to-market impacts which reflect our best estimate on the impact of these international go-to-market changes and exits, and represent the year over year change in those markets. We expect to realize the majority of the impact from these changes in the fourth quarter of 2015 and the first three quarters of fiscal year 2016.

Gross margin

basis points to

. Gross margin declined 310 basis points excluding the negative impact of currency and the change in Venezuela results. Gross margin declines were driven by increased price promotion, which more than offset volume and cost mix improvements.

Advertising and sales promotion expense (A&P)

$95.7 million

of net sales. This represents a decrease of

$26.1 million

basis points as a percent of net sales, due to lower investments in the quarter, related primarily to timing of spend, as overall A&P in the fiscal year was up 100 basis points versus the prior year on a percent of net sales basis. In the fourth quarter of 2014, A&P was at higher than normal levels due to investments supporting our acquired Feminine Care brands.

Selling, general and administrative expense

$123.5 million

of net sales, compared to

$147.5 million

of net sales, in the prior year quarter. Included within the current quarter results were pre-tax costs of $30.3 million related to the spin-off. Excluding these spin-off costs, SG&A as a percent of net sales was 16.7%, including corporate amortization. Historical SG&A results on a continuing operations basis include certain costs associated with supporting the Household Product business that are not eligible to be reported in discontinued operations.

Fourth quarter

of $76.9 million

$27.3 million

, on an organic basis, due to lower sales and gross margin related primarily to higher promotion expense, partially offset by lower A&P spending.

The full-year effective tax rate for fiscal 2015 for continuing operations

as compared to

in the prior year. The tax rate for 2015 reflects a tax benefit on a net loss primarily due to increased expenses in higher-rate tax jurisdictions, including spin-related expenses and the impairment charge, offset in part by the Venezuela deconsolidation charge, which had no accompanying tax benefit. The fiscal 2015 adjusted effective tax rate for continuing operations was 23.2% as compared to 28.4% in the prior year. The decrease was due to a higher mix of earnings in lower-rate tax jurisdictions compared to the prior year.

adjusted net earnings per diluted share

increased 34.8% to

. On a GAAP basis, net loss per share from continuing operations was

as compared to net earnings per diluted share of

in the prior year quarter. Growth in adjusted EPS was largely driven by a lower tax rate and lower SG&A and reduced interest costs compared to the prior year, which included higher costs associated with supporting the Household Product business that are not eligible to be reported in discontinued operations.

versus a normalized fourth quarter 2014 EBITDA of

$110.3 million

. Declines in gross margin and a $17 million negative impact from currency were partly offset by lower A&P and SG&A costs in the quarter.

Other Items

During the fourth quarter, the Company recorded a pre-tax, non-cash

intangible asset impairment charge

to adjust the carrying values of indefinite-lived tradenames related to the Playtex, Wet-Ones and Skintimate brands. While we are still optimistic about the future potential and value of these brands, declining performance over the past twelve months impacted growth and cash flow projections. The impairment charge has no impact on cash balances, operating cash flows or business outlook, and is not expected to impact the ability of the Company to achieve its long-term objectives.

sale of the Industrial Blade business

was completed in September and resulted in a pre-tax loss on the sale of

$10.8 million

$32.7 million

for the quarter and

year ended September 30, 2015

, respectively.

In the fourth quarter of 2015, the Company incurred

pre-tax spin charges

($30.1 million included in SG&A and $0.2 million included in Cost of products sold); and

$142.0 million

of such charges for the

($137.8 million reported in SG&A and $4.2 million included in Cost of products sold). The Company also incurred

$28.3 million

of pre-tax spin restructuring charges for the

. Additionally, for the quarter and year ended September 30, 2015, the Company recorded pre-tax expense of

$6.3 million

$26.7 million

, respectively, related to its

2013 restructuring

as compared to pre-tax expense of

$12.7 million

$49.9 million

, respectively, for the quarter and year ended September 30, 2014.

4Q Operating Segment Results (Unaudited)

Wet Shave

(Men's Systems, Women's Systems, Disposables, Shave Preps)

Wet Shave organic net sales decreased

$21.8 million

, in the fourth quarter, driven by the impact of international go-to-market changes, transition issues in international markets and higher sales and trade promotions in North America. Organic segment profit declined

$26.4 million

as higher sales promotions and increased investment in Research and Development (R&D) were only partially offset by higher volumes and lower A&P spend.

Sun and Skin Care

(Sun Care, Wipes, Gloves)

Sun and Skin Care organic net sales decreased slightly, down

, driven by international sales declines related to go-to-market changes, transition issues and promotional spending, which was partially offset by growth in North America due to higher Sun Care volumes related to late season replenishment and promotions. Organic segment profit declined

$1.0 million

as higher promotional spending was only partially offset by higher volume and improved price mix.

(Tampons, Pads, Liners)

Feminine Care organic net sales decreased

$19.7...


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