Company: PBH
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0001295947-25-000009
Chunk: 19

Company: Prestige Consumer Healthcare Inc.
Filing Date: 2025-02-06
Form: 10-Q
Item: Item 2
Chunk 19
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 31, 2023.  The decrease in depreciation and amortization expenses was primarily due to certain intangible assets being fully amortized during the nine months ended December 31, 2024.

Interest Expense, Net

Interest expense, net was $36.9 million during the nine months ended December 31, 2024 versus $51.9 million during the nine months ended December 31, 2023.  The average indebtedness decreased to $1.1 billion during the nine months ended December 31, 2024 from $1.3 billion during the nine months ended December 31, 2023. The average cost of borrowing decreased to 4.7% for the nine months ended December 31, 2024 compared to 5.4% for the nine months ended December 31, 2023.

Income Taxes

The provision for income taxes during the nine months ended December 31, 2024 was $45.8 million versus $48.8 million during the nine months ended December 31, 2023.  The effective tax rate during the nine months ended December 31, 2024 was 21.8% versus 23.4% during the nine months ended December 31, 2023.  The decrease in the effective tax rate for the nine months ended December 31, 2024 compared to the nine months ended December 31, 2023 was due to discrete items primarily 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 December 31, 2024, we had cash and cash equivalents of $50.9 million, an increase of $4.