Good morning, everyone, and thank you for attending our conference. I'm Susan Anderson, one of Canaccord's analysts in the consumer space, and we're very excited to have here with us Prestige Consumer Healthcare, and in particular, CFO and COO, Chris Sacco, and VP, IR, and Treasury, Phil Terpolilli. Chris, maybe if you could just start off by giving us a brief overview of Prestige for those in the room that are not that familiar with the business, the brands, and the long-term strategy. Sure. Thank you. Morning, everybody. Prestige has been executing a three-pillar strategy for some time. Phil and I've been with the company about 10 years, and strategies remain the same. Of course, we've been through a lot of volatility, all of us, macro environment. The tactics have changed, but the strategy has not. We're going to invest in the brands we have. We're a marketing brand-building company. It's what we show up to do every day. We have a superior financial profile. These are need-state products that people, incidence base, they go to the store, they're not really looking to save a dollar. Not a lot of sold-on promotion, as an example, in our category. Strong margins, which enable us to then deploy the capital, that's the third pillar, effectively. A lot of time that comes through de-leveraging, which through M&A, we kind of have gotten ourselves, bring on some new brands, get into some new categories, de-leverage back down, and then start the model all over again. That's been the strategy. It's been consistent over time and continues to be the strategy today. Great. You've had a lot of activity lately, two acquisitions after Pillar5 as well. Maybe if you could just give us a brief overview of those two acquisitions, Breathe Right and LaCorium Health. Tell us about the main Breathe Right brand and then maybe some of the smaller brands in the portfolio. Then same thing with LaCorium. Tell us about the size and kind of the opportunity there as well. Great. So, middle of June, we closed on the Breathe Right acquisition. Breathe Right is about 2/3 of the portfolio that came with that acquisition. Better breathing is the positioning for Breathe Right. It is a brand that defines the category, similar to Dramamine, with over 90% consumer awareness. The key there is really just 3% household penetration. So in North America, we see a lot of runway for growth as we brand build, we innovate, kind of our normal wheelhouse. And then internationally as well as we expand into new markets. Breathe Right is in about 20 countries. We will look to expand that over time. Strong margins, feel good about the portfolio. It is exactly what we are looking for. A leading brand in a niche category. That is kind of the secret sauce to Prestige. And we have a number of leading brands that are holding meaningful positions in their categories as a result of staying disciplined in that strategy. The LaCorium transaction, about 75% of those sales are in Australia. This is therapeutic skincare, anchored in the Dermal Therapy brand. Again, niche categories, think cold sores, eczema, not beauty, not general skincare. And so brand has been doing very well. The portfolio has been growing double digits for many years now. So we are excited about what that will be, largely international and different markets. Again, 75% sold in Australia. We will look to expand that into other international markets as we move forward. So, with international at about 15% of sales, our long-term growth target for our international segment is 5%+ growth top line. The entire Prestige portfolio is 2%-3% growth, so international a little bit outsized growth. And we think these two acquisitions will help firm that up. And as we look over time, we would expect internationals to become about 20% of the portfolio as a result of the higher growth coming from these brands. Okay, great. Of course, we cannot have a conversation without mentioning eye care. But it has become a very small portion of the portfolio, low single digits, even smaller now with the two acquisitions. But maybe just give everyone a quick update on where you are at with the eye care business and getting it back on track with the new acquisition and the high-speed line. Yeah. Clear Eyes is about 3% of sales as we sit here today. A number of things have happened in the past, call it six months. We acquired our sterile eye care facility up in Canada back in December. We are about two quarters in. We feel good about the progress we are making. We have made investments in infrastructure. We have made investments in equipment. Most importantly, probably, we have changed out some leadership positions there. The most recent of which started on Monday of this week. We are excited about that, including making the general manager of that facility a long-term employee there who was back in the Pfizer days in that facility. Feeling good about the moves that we have made. What we have talked about is the improvements that we are making are going to cause some near-term variability. We saw that in Q1. We expect to continue to see it in the second quarter, with more consistent supply expected in the back half. We have talked about expecting sequential improvement in each quarter of this year, building off of that Q1 base. Again, continue to feel like it was the right decision to bring that facility in-house, take control of our destiny. Quality is number one in everything that we do and will continue to be our focus. We will continue to make investments in the facility, and look for more consistent output. The Clear Eyes story is a supply story, not a demand story. Over time, we think about it in a couple of steps, right? We have got to get consistent supply on the shelf of the retailers. We have been focusing on base red and max red, our kind of core anchor SKUs with Clear Eyes. As we do that, we will then look to fill the retailers' DCs. We will then look to rebuild safety stock. It has been some time. We have been having some supply chain issues around the brand. We are kind of feeling every bump in the road, if you will, right now. When we are carrying three to four months of inventory, the line down for a week, you will not feel it. But right now we are feeling it. Over time, we will look to bring that back on. Then we will be able to introduce new SKUs. Some of the SKUs that we have kind of put on the back burner right now, dry and itchy, and things like that. Then we can turn the marketing on. It is going to take a couple of years to get back to where we were, but I think the retailers understand the importance of trust in this category. There has been a number of major recalls at other folks. There has been news, obviously, a few years ago around this space that was pretty alarming and concerning, and so focusing on quality, bringing the facility in-house and taking control of it, I think was the right move. Over time, we think Clear Eyes will continue. We have seen the category decline as Clear Eyes has come out. That is pretty powerful to take back to the retailers and show them how important a brand like Clear Eyes, that has the trust of the consumer, is really important, and now so more than ever. Going to take some time, but again, as we work through fiscal 2027, we feel good about getting more consistency in supply as we exit the year. That was going to be my next question, just the confidence level in gaining back that share once you are able to stock the shelves. It sounds like just given, obviously, consumers' desire for a brand within the category, and you guys- Yep. being one of the leading, you are pretty confident- Yep. in getting that share. Brands that consumers trust. At its peak, Clear Eyes was clearly by far the unit leader. It is why we needed to purchase the facility. There is not an abundance of global sterile eye care supply out there for the kinds of demand that Clear Eyes can dictate. But again, opening price point with red relief, important to the consumer and important to the retailers. Okay, great. Then maybe let us just switch to the financials a little bit. You guys have leading EBITDA margins in the mid 30% range, so you generate a lot of free cash flow. You are levering up to buy these two acquisitions. So maybe talk about the timeframe of de-levering and where you guys expect to be in a couple of years. Sure. So from a very high level, you are exactly right, Susan. We operate with a very strong financial profile that has very strong free cash flow conversion. That is consistent over time as well. If you look back across economic environments, we have a financial free cash flow profile that is stable to growing over time. So there is a lot of benefits to that, and the ability for us to sort of manage leverage and fuel our capital allocation priorities. So to your point, we spent our capital structure at the end of June that we just came out of, the Q1 results that we reported last week, got about $2 billion in net debt, and we are just a little bit over 4x. What we have talked about is at fiscal year-end, we would expect to be a little bit under 4x, and working our way quickly back to the long-term target of being less than 3x, as the long-term target for the business from a leverage perspective, in fiscal 2028 and beyond. That really fuels other capital allocation priorities as well when we think about optionality. So as we reduce leverage over time, it really gives us the ability to invest in all those priorities. The structure is really unchanged to what we have talked about historically. It always starts with investing in the brands and the portfolio that we have today. So making sure that we are fueling our brands with marketing investments, innovation, et cetera. Then it is working from a disciplined manner to reduce our debt profile to open up optionality for other things. That can include share repurchases. We don't expect to do that for the balance of fiscal 2027, but we do have $90 million or so authorization remaining to continue to do that in the future, as well as future M&A. Clearly, we're going to be busy in the near term, as Chris laid out, both with LaCorium and with Breathe Right, integrating those acquisitions, working to grow them. But as we look out into the future fiscal years, we want to have that optionality to go out and continue to acquire brands in what we see as a fragmented consumer healthcare landscape. So, strong financial profile. We're working to rapidly de-lever, and we see a lot of benefits to the priority structure that we have. Okay, great. Then maybe just looking at the portfolio, you guys operate, like you mentioned, in a very niche, in niche brands. The way I see it, usually less susceptible to trade down from private label because the private label brands typically play more in the mass brand categories. Maybe just talk about what you've seen there from the consumer, if you are seeing any kind of value-seeking behavior or trade-down type of behavior. Then also just inventory at retail, if you've seen any change there. But once again, I think because you guys play in such much smaller categories, you're less susceptible. Yeah, that's exactly right. So over time, and we've gone back, folks, as you know, we saw it during COVID, at least we were here for COVID. People asked us about the financial crisis. We went back and looked, and in our categories for our brands, we really don't feel consumers shifting to private label. What we have seen is a channel shift, where they're shopping, right? They're shopping where they perceive value to be, which is mass and e-commerce. I'm sure you're not surprised by that, but we've seen that over the past several years, has largely, you can see it in our filings, right, become e-com. When Phil and I joined the company in fiscal 2017, e-com was 1% of sales. We used to think, "Hey, we're an OTC company. Folks are doing their research, but then they want the immediacy and need of the product, they're going to the store." Then we were 2%, then we were 3%, right? Over the year, each year, we gained 1%, and we were at about 5% when COVID hit. In three weeks, 5% went to 10%. So what's been really interesting is just that it's held, right? Now it's getting closer to 15% as a percentage of sales. So we're investing behind it. We have now for, since we've joined the company, 10 years of consistent increased investment in the e-commerce platform. We've brought folks in-house, functions in-house. So continue to see that. From a private label perspective, there hasn't been any meaningful change in our categories over multiple different kind of. A lot of things happened in fiscal 2026 in terms, macro things that happened to all of us. We didn't feel that shift, and we continue to. We always say if the only thing we compete on is price, we're not doing our job. We need to bring innovation, bring new users into the category. We are the category leader in many instances. Why are you not in the category? Let us address it. Why are you only in the category once a year? Let us address it. Sorry, the second part of your question was around? Oh, just the destocking. Oh, destocking. Yes. Yeah. Destocking. We don't believe that we have a bunch of inventory out there. We've talked about one e-commerce supplier whose order patterns have been a bit different. Don't have a lot of visibility into that. What we do control is our consumption. We see consistent consumption and growing consumption in that channel. It's been a little lumpy. We've talked about it in some quarters. In the first quarter, a week ago, we talked about getting some benefit at the end of the quarter that we think will correct itself in the second quarter. When we look to the first half, we think we'll have organic growth at the lower end of our 1%-3% that we put out there for the year. We've always talked about expecting the back half to be a higher growth period for the base business organically, even before acquisition. Seasonality of our international business, and then the Clear Eyes improved supply that we talked about before. G reat. You mentioned your brand-building playbook, which has been, I think, a big driver of your strategy in expanding brands into maybe tangential areas or new use cases. Maybe talk about how you use that and potentially an example like Dramamine or Hydralyte. Sure. Dramamine's a great example, right? Using consumer insights, why are you not in the category? Back in the day for Dramamine, it was, "Well, this is making me tired, and I'm driving the car," or, "I'm on a cruise, I don't want to go to sleep." Right? We launched less drowsy, then we launched non-drowsy, right? We always joke and say it's not rocket science, but it didn't exist prior to that, right? Using consumer insights and then launching innovation to address the issue. A few years ago, we launched Dramamine. Folks were describing their symptoms, "I'm nauseous. I don't want to throw up. I'm doing something, and I don't feel well." They were describing the same symptoms, but if you told them they had motion sickness, they would say, "That's for my kids in the back of the car." We launched Dramamine-N, went into an adjacent space. It's been really well-received. It's been highly incremental. It's brought new folks into the category. We are now the leader in nausea. It's that kind of thing where understanding where the consumer will give you permission to play. We bought TheraTears Dry Eye Relief brand a few years ago, because we tried to go into dry eye with Clear Eyes, and it was very evident that the consumer was like, "No, no, Clear Eyes is for redness, relief or irritation and things like that." The consumer will tell you where you have permission to play. But again, it's starting with consumer insights, and we always say we're going to hit a bunch of singles and doubles, and address consumer needs. BC and Goody's, fast-acting pain relief medicine. Folks told us that they didn't like the taste of it. Tasted like medicine, which by the way, some people love. So we launched flavors, and we were able to bring new folks into the category. So it's things like that that we show up to do every day, and again, being a category leader, we can focus on growing the category as opposed to swapping share with the next biggest player, and that makes us pretty valuable to retailers when we have those discussions. Okay, great. Then just looking at the international business, historically it's been majority Hydralyte, which has been a great brand for you guys, and you've done a really good job driving the growth there. So maybe talk about that brand and what's next in terms of the growth legs for the brand, and then also just the international business in general. Sure. So to your point, Susan, we've had a lot of success over a very long time horizon with Hydralyte, and frankly, our care pharmaceutical banner. So our team is based in an office just outside of Sydney, Australia. And they not only have a strong presence for Hydralyte in Australia, but also with our products throughout Southeast Asia, Middle East, et cetera. And the story with Hydralyte is very similar to what Chris just described with Dramamine. We've taken the brand, we've looked at consumer insights and said, "Hey, why aren't consumers using the brand or the category, and how do we expand that scope or that TAM over time?" And it's gone from, I'll call it 10 years ago, really, I have vomiting, I have severe sickness, and I take Hydralyte for rehydration, to an everyday lifestyle product. From I went out drinking last night to I'm out working in fields and construction work, and I'm dehydrated, and use cases like that that are maybe perhaps more everyday occasions into categories like sports. So by expanding into those adjacencies, we've grown the total pie and the total per capita consumption in Australia as well as household penetration. So when we started the journey owning Hydralyte, the brand represented low single digits on a household penetration basis. Today, that's 10% or so, and we think there's runway to continue to grow that. On top of that, there's geographic expansion. I mentioned earlier that presence throughout Southeast Asia and the Middle East. We continue to look for opportunities to expand the brand, and frankly, all the brands in that portfolio in Australia into those international markets. So we see that as an opportunity over time as well. All those factors, when we look at our international segment, are reasons that give us confidence in the 5%+ organic growth target that we have for that segment over time. Those are some of the examples. Certainly, we talked earlier about LaCorium as well. We see that as reinforcing to that algorithm where we see a lot of similarities to the Hydralyte brand in terms of Dermal Therapy's ability to potentially expand over time and grow that franchise. We think there's a lot of opportunity ahead. Okay, great. Maybe if we could talk about the women's health business a little bit. You have two brands there. Maybe talk about those and the opportunity there. Then maybe down the road, is there potential opportunity even to expand more in women's health with some acquisitions? Yeah, sure. Monistat and Summer's Eve are two of our largest brands, just behind now the newly created Breathe Right brand. Monistat has been stabilized. It had some periods of decline. We have stabilized the brand, grew quite a bit of share, near all-time high in terms of share for Monistat. The number of yeast incidences has really been declining a bit, and so we have curbed that through innovation by coming out, if you call that cure, we have come out with a bunch of care products. Think prevention and things like that. That has helped the brand, again, to stabilize and are really near an all-time high in terms of category share. Summer's Eve, we've talked about that being kind of a multi-year process to kind of unwind the attempt to de-stigmatize the category, if you will. This is an odor incident-driven category. A couple of years ago, we launched Ultimate Odor Protection. It was very well-received. It's growing very nicely. We're looking to expand that. Through innovation, we'll look to bring on new products that address things, exactly trying to touch on what Ultimate Odor Protection was able to do. We feel good about the path we're headed on. Will take a little bit of time, but as we work through that, we think fiscal 2027 is a year of stabilization for Summer's Eve. Acquisitions were not ever locked to a category. Even when you think about women's health, those two brands, Monistat is vaginal antifungal and Summer's Eve is feminine hygiene. They really have nothing to do with one another, and so that speaks to the diversity of the portfolio. You see that piece of the pie and you think women's health, it's even more diversified than that. We certainly are always open. We're not limiting ourselves in terms of M&A to any particular category. We're looking for anything where consumers will view that as a way to take better care of your health. We look at a lot of things. There were a number of years there before we announced the Breathe Right and LaCorium transactions. We got the question a lot, and we said, "Look, we're going to stay disciplined to our criteria." Hopefully, folks see it in the Breathe Right and LaCorium acquisitions. It's just a pure coincidence they came about two weeks after one another in terms of close. Feel good about that, by the way. We get asked a lot about the integration of those acquisitions. We are largely integrated. We signed the Breathe Right transaction, which was obviously the larger, $1 billion transaction, back in May. March, excuse me. So we had a bit of a runway where we were working with their folks to integrate, and last Monday, we kind of turned on the systems in SAP, and their product is in our warehouse now. Sure. Our product. We're all shipping together, so very largely done with integration from a Breathe Right perspective, the larger one. On LaCorium, we gave ourselves. They're currently integrating. We knew that we wanted to de-risk the integration plans with the two acquisitions, so LaCorium, we gave ourselves a little bit more runway. We have some more time, where we're being helped by the seller in the transition. Brought on 23 of the folks who were with LaCorium, so that helps in terms of continuity. So feel good about our ability to integrate these by the end of the fiscal year, likely. As Phil said, now just focus on the growth of the brands. Great. I guess maybe with the last minute left we have here, talk about, so you did the two acquisitions. Investors were waiting for the acquisitions. It sounds like you guys have quickly moved to integrate them. So what do you think investors are missing, or what's misunderstood about the story for Prestige and the stock? Yeah. We tried in May to put out a three-year illustrative P&L to show folks, and fair point on Clear Eyes, I understand, and happy to talk about it, but we were spending 90%-95% of our time answering questions about 3% of our business now. We were trying to have folks step back and see, with these expected acquisitions, we think we have some really nice growth opportunities over the next few years. We have reloaded the pre-payable debt, about $1 billion of pre-payable debt. With our cash flow generation, that is going to drive bottom-line growth ahead of top-line growth, and we think the cash flows, and we talked about in the next three years expecting up to $900 million of free cash flow. That is really powerful in how we can unlock value, we think, for the shareholders. That is kind of the reminder that we wanted folks to kind of step back and look at the big picture, and we think maybe we are missing that for a little bit. Great. Also, I guess, the growth that the new acquisitions will be driving- Yeah. which is above your historical average. Absolutely. Yeah. Okay. Well, thank you. Thank you so much, Prestige Consumer Healthcare, for taking the time. Thank you, everybody.