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    Douglas Lane • Water Tower Research

    Douglas Lane's questions to Prestige Consumer Healthcare Inc (PBH) leadership

    Douglas Lane's questions to Prestige Consumer Healthcare Inc (PBH) leadership • Q1 2026

    Question

    Douglas Lane from Water Tower Research LLC asked why supply constraints have been so pronounced in the sterile eye care category specifically. He also questioned if accelerated capital spending would be required to build out capacity and sought clarification on the disconnect between strong e-commerce consumption and company shipments.

    Answer

    Chairman, President & CEO Ron Lombardi explained that the lack of available third-party, high-volume sterile eye care capacity, combined with Clear Eyes' unique bottle, makes sourcing difficult, necessitating the in-house move. He stated that no major step-up in capital spending is expected, with the long-term outlook only moving from 1-2% to 1-3% of sales. CFO & COO Christine Sacco confirmed that the e-commerce channel was an area with a disconnect between consumption and shipments, and that the inventory build from Q4 had been worked off, with the current issue being new order volatility in July.

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    Douglas Lane's questions to Prestige Consumer Healthcare Inc (PBH) leadership • Q4 2025

    Question

    Douglas Lane asked about the potential impact of the recently closed Opella (Sanofi consumer health spin-off) deal, questioning if it would affect Prestige competitively or act as an M&A catalyst.

    Answer

    Chairman, President & CEO Ron Lombardi stated that the Opella transaction does not fundamentally change the competitive landscape for Prestige. He noted that, similar to previous spinouts from large pharmaceutical companies, it could create future M&A opportunities as brands may come to market over time, viewing it as "more of the same."

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    Douglas Lane's questions to Herbalife Ltd (HLF) leadership

    Douglas Lane's questions to Herbalife Ltd (HLF) leadership • Q2 2025

    Question

    Douglas Lane of Water Tower Research LLC asked for clarification on whether the Protocol app and the healthy lifespan supplement would remain bundled post-launch, the company's strategy for its subscription model, the envisioned global rollout timeline for Protocol beyond 2025, and plans for refinancing high-cost debt.

    Answer

    CEO Stephan Gratziani clarified that distributors will have flexible options, allowing them to offer the app as a standalone support tool or bundled with the new product to fit existing and new business models. He emphasized that while the subscription model is a key future element, it will take time to build. He also confirmed plans for global expansion of Protocol beginning in 2026. CFO John DeSimone addressed the debt, stating that the company will actively consider refinancing its high-cost debt after the two-year no-call protection on its bond expires in April 2026, citing the company's much-improved financial position.

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    Douglas Lane's questions to Herbalife Ltd (HLF) leadership • Q1 2025

    Question

    Douglas Lane of Water Tower Research asked about the long-term capital investment outlook for Pro2col over the next 3-5 years and requested an early read on distributor engagement with the new Flex45 challenge.

    Answer

    CFO John DeSimone clarified that Pro2col investment will not permanently elevate CapEx, as it involves reprioritizing existing spend and leveraging the significant technology infrastructure already built. President and incoming CEO Stephan Gratziani reported strong excitement for the Flex45 challenge, with over 200,000 distributors preregistering and tens of thousands actively participating, viewing it as a simple, effective program for engagement and onboarding.

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    Douglas Lane's questions to Herbalife Ltd (HLF) leadership • Q4 2024

    Question

    Douglas Lane highlighted the sharp acceleration in new distributor growth to 22% and asked what is driving it and how this will ultimately translate into growth in the sales leader base.

    Answer

    Incoming CEO Stephan Gratziani attributed the growth to a series of initiatives launched in early 2024, particularly the 'Herbalife Premier League,' which for the first time created a focused program for recruiting and activating new distributors. He also cited more advanced, DMO-centric training and the efforts of the distributors themselves. While the average sales leader number has stabilized, he noted the timing of significant growth will vary by region but expressed confidence the company will 'hit our stride' in the second half of 2025.

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    Douglas Lane's questions to USANA Health Sciences Inc (USNA) leadership

    Douglas Lane's questions to USANA Health Sciences Inc (USNA) leadership • Q4 2024

    Question

    Douglas Lane asked about the 2025 balance sheet outlook, including cash flow, debt retirement, and share repurchases. He also questioned Hiya's capital needs, the overall CapEx forecast, and the strategic thinking behind modifications to the business model.

    Answer

    CFO Doug Hekking projected strong cash generation in 2025, with plans to retire the $23 million in debt from the Hiya deal by mid-year. He stated share repurchases would at least offset dilution from equity compensation. Hekking confirmed Hiya has low capital intensity and that overall CapEx would be around 1-1.5% of sales. CEO Jim Brown clarified that the changes are 'tweaks' to make the direct selling model more attractive upfront, reiterating a firm commitment to the existing channel.

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