Company: PBH
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001295947-25-000029
Chunk: 15

Company: Prestige Consumer Healthcare Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 2
Chunk 15
---
Interest Expense, Net

Interest expense, net was $10.2 million during the three months ended June 30, 2025 versus $13.1 million during the three months ended June 30, 2024.  The average indebtedness during the three months ended June 30, 2025 decreased to $1.0 billion from $1.1 billion during the three months ended June 30, 2024.  The average cost of borrowing decreased to 4.5% for the three months ended June 30, 2025 compared to 4.8% for the three months ended June 30, 2024.

Income Taxes

The provision for income taxes during the three months ended June 30, 2025 was $14.3 million versus $9.3 million during the three months ended June 30, 2024.  The effective tax rate during the three months ended June 30, 2025 was 23.2% versus 16.0% during the three months ended June 30, 2024.  The increase in the effective tax rate for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 was primarily due to discrete items in the prior year pertaining to the release of a reserve for uncertain tax positions due to the statute of limitations expiring.

Liquidity and Capital Resources 

Liquidity

Our primary source of cash comes from our cash flow from operations.  In the past, we have supplemented this source of cash with various debt facilities, primarily in connection with acquisitions.  We have financed our operations, and expect to continue to finance our operations for the next twelve months and the foreseeable future, with a combination of funds generated from operations and borrowings.  Our principal uses of cash are for operating expenses, debt service, share repurchases, capital expenditures, and acquisitions.  Based on our current levels of operations and anticipated growth, excluding acquisitions, we believe that our cash generated from operations and our existing credit facilities will be adequate to finance our working capital and capital expenditures through the next twelve months.  See "Economic Environment" above.

As of June 30, 2025, we had cash and cash equivalents of $139.5 million, an increase of $41.6 million from March 31, 2025.  The following table summarizes the change: 

 Three Months Ended June 30,(In thousands)20252024$ Change