Spectrum Brands Holdings, Inc. (NYSE: SPB), a global and diversified
consumer products company with market-leading brands, today reported
record fiscal 2014 second quarter results for the period ended March 30,
2014, and reconfirmed its outlook for a fifth consecutive year of record
performance.
The Company’s record second quarter was highlighted by solid results
from its HHI, battery, personal care, and home and garden businesses; a
continuation of strong European results; adjusted diluted earnings per
share and adjusted EBITDA growth; and a record fiscal second quarter
level of cost savings from continuous improvement programs across all
divisions.
Spectrum Brands reiterated plans to reduce term debt by approximately
$250 million in fiscal 2014 and expectations for free cash flow to
increase to at least $350 million, a significant improvement from a
record $254 million in fiscal 2013 and $208 million in fiscal 2012.
Fiscal 2014 Second Quarter Results Highlights:
-
Net sales of $1.02 billion in the second quarter of fiscal 2014
increased 3.4 percent versus $987.8 million a year ago, and 4.0
percent excluding the negative impact of foreign exchange.
-
Net income of $33.8 million and diluted income per share of $0.64
in the second quarter of fiscal 2014 improved from a net loss of $41.2
million and diluted loss per share of $0.79 in the prior year quarter.
-
Adjusted diluted earnings per share, a non-GAAP measure, of $0.72
in the second quarter of fiscal 2014 increased 63.6 percent compared
to $0.44 last year. See Table 3 for a reconciliation to GAAP earnings
per share.
-
Adjusted EBITDA, a non-GAAP measure, of $156.5 million in the
second quarter of fiscal 2014 grew 9.2 percent versus $143.3 million
in fiscal 2013, and 9.8 percent excluding the negative impact of
foreign exchange, representing the 14th
consecutive quarter of year-over-year adjusted EBITDA growth. See
Table 4 for a reconciliation to GAAP net income.
-
Adjusted EBITDA margin in the second quarter of fiscal 2014
increased to 15.3 percent compared to 14.5 percent in the year-ago
quarter.
-
Fiscal 2014 net cash provided from operating activities after
purchases of property, plant and equipment (free cash flow, a non-GAAP
measure) expected to be at least $350 million compared to $254 million
in fiscal 2013 and $208 million in fiscal 2012. See Table 6 for a
reconciliation to projected GAAP Cash Flow from Operating Activities.
-
Company expects to use its strong free cash flow to reduce term
debt by approximately $250 million and lower its balance sheet
leverage in the second half of fiscal 2014, consistent with the
seasonality of its cash flows.
“We are pleased with our record results in the second quarter, which
seasonally is our smallest quarter of the year,” said Dave Lumley, Chief
Executive Officer of Spectrum Brands Holdings. “Combined with our record
first quarter, we have solid first half momentum toward delivering a
fifth consecutive year of record financial performance in fiscal 2014.
“Our second quarter had many notable highlights with broad-based
contributions from our divisions globally,” Mr. Lumley said. “Virtually
all of our divisions achieved higher net sales and adjusted EBITDA,
enabling us to significantly grow our adjusted EPS and expand our
adjusted EBITDA margin. In Europe we again delivered record results. In
a region with negative foreign currency headwinds, our Latin American
battery, personal care, small appliance and HHI sales all increased on a
constant currency basis.
“We also overcame unusually harsh winter weather in January and part of
February in the U.S. and Canada that hurt retailer store traffic and
POS, particularly in our HHI and Pet businesses,” he said.
“Similar to the first quarter, we achieved a record level of continuous
improvement savings for a fiscal second quarter,” Mr. Lumley said. “This
reinforces our ongoing focus to reduce our cost structure, more than
offset higher product costs and continue to invest in new products, many
of which are launching in the second half of fiscal 2014 and into fiscal
2015.
“We are optimistic about the second half of the year, which should be
much larger than our record first half and stronger than the second half
of fiscal 2013,” Mr. Lumley said. “We have new products launching in all
divisions, retail distribution gains secured, new retailer customers in
place, continued geographic expansion, and select pricing actions. We
will maintain strict spending controls and are on track to achieve a
record level of cost reductions in fiscal 2014.
“Our Spectrum Value Model continues to work effectively around the world
and is resonating with retailers and consumers in a global economy that
remains challenging,” he said. “’Same or better performance/less price’,
value-branded Spectrum Brands products are winning in today’s
marketplace with today’s smart shoppers.
“We are executing well on our growth plans and are focused on delivering
another year of steady, measured financial improvement, including a
strong increase in free cash flow, in fiscal 2014,” Mr. Lumley said.
“Our commitment remains to create greater shareholder value, with a
focus on growing our adjusted EBITDA, reducing debt and deleveraging,
and maximizing sustainable free cash flow.”
Fiscal 2014 Second Quarter Consolidated Financial Results
Spectrum Brands Holdings reported record net sales of $1.02 billion in
the second quarter of fiscal 2014, an increase of 3.4 percent compared
to $987.8 million a year earlier. The improvement was predominantly the
result of higher net sales in the Company’s battery, personal care, home
and garden, and HHI businesses. Excluding the negative impact of foreign
exchange, net sales in the second quarter of fiscal 2014 improved 4.0
percent.
Gross profit and gross profit margin in the second quarter of fiscal
2014 was $359.6 million and 35.2 percent, respectively, compared to
$322.9 million and 32.7 percent last year, which included $25.8 million
of increased cost of goods sold from the sale of inventory that was
revalued in connection with the HHI acquisition.
Spectrum Brands reported net income of $33.8 million, or $0.64 diluted
income per share, in the second quarter of fiscal 2014 on average shares
and common stock equivalents outstanding of 53.0 million. In fiscal
2013, the Company reported a net loss of $41.2 million, or $0.79 diluted
loss per share, on average shares and common stock equivalents
outstanding of 52.1 million. Adjusted for certain items in both fiscal
years, which are presented in Table 3 of this press release and which
management believes are not indicative of the Company’s ongoing
normalized operations, the Company generated adjusted diluted earnings
per share, a non-GAAP measure, of $0.72 in the second quarter of fiscal
2014, a 63.6 percent increase compared to $0.44 in the prior year.
Adjusted EBITDA, a non-GAAP measure, of $156.5 million in the second
quarter of fiscal 2014 increased 9.2 percent compared to adjusted EBITDA
of $143.3 million in fiscal 2013, and 9.8 percent excluding the negative
impact of foreign exchange, which represented the 14th
consecutive quarter of year-over-year adjusted EBITDA growth. Adjusted
EBITDA as a percentage of net sales (adjusted EBITDA margin) improved to
15.3 percent compared to 14.5 percent in the year-ago quarter. Adjusted
EBITDA is a non-GAAP measurement of profitability which the Company
believes is a useful indicator of the operating health of the business
and its trends.
Fiscal 2014 First Half Consolidated Financial Results
Net sales of $2.12 billion in the first six months of fiscal 2014
increased 14.2 percent compared to $1.86 billion for the same period in
fiscal 2013. The increase was the result of the HHI acquisition on
December 17, 2012 and higher revenues for the home and garden business.
Including HHI as if part of the Company for all of last year’s first six
months, net sales of $2.12 billion increased 3.5 percent compared to
$2.05 billion last year.
The Company reported GAAP net income of $88.1 million, or $1.67 diluted
income per share, in the first six months of fiscal 2014 on average
shares and common stock equivalents outstanding of 52.8 million. In the
first half of fiscal 2013, the Company reported a GAAP net loss of $54.7
million, or $1.05 diluted loss per share, on average shares and common
stock equivalents outstanding of 51.9 million. Adjusted for certain
items in both years’ first six months, which are presented in Table 3 of
this press release and which management believes are not indicative of
the Company’s ongoing normalized operations, the Company generated
adjusted diluted earnings per share, a non-GAAP measure, of $1.81 in the
first half of fiscal 2014, a 48.4 percent increase compared to $1.22 in
last year’s first six months.
Fiscal 2014 first half adjusted EBITDA of $335.2 million increased 10.3
percent compared to adjusted EBITDA in the first half of fiscal 2013 of
$303.9 million, which includes the results of HHI as if acquired by
Spectrum Brands at the beginning of last year’s first six months period.
The adjusted EBITDA margin improved significantly to 15.8 percent versus
14.8 percent last year.
Fiscal 2014 Second Quarter Segment Level Data
Global Batteries & Appliances
The Global Batteries & Appliances segment reported fiscal 2014 second
quarter net sales of $480.9 million, an increase of 2.6 percent versus
$468.6 million in the year-ago quarter, and 3.3 percent excluding the
negative impact of foreign exchange. Higher battery and personal care
net sales more than offset slightly lower small appliances revenues.
Global battery sales in the second quarter of fiscal 2014 of $211.4
million improved 5.8 percent compared to $199.7 million in the second
quarter of fiscal 2013, and 7.0 percent excluding the negative impact of
foreign exchange. All geographic regions contributed to the solid
increase. North American battery growth was primarily due to increased
shipments to several existing customers and new retailer distribution.
In Europe, strong VARTA® battery growth was driven by a
combination of new customer listings, regional expansion and promotions.
Latin American battery revenues increased on a constant currency basis
primarily as a result of flashlight product launches throughout the
region.
Net sales for the global personal care product category of $117.0
million in the second quarter of fiscal 2014 increased 2.4 percent
versus $114.2 million last year, and 3.1 percent excluding the negative
impact of foreign exchange. The improvement was driven by a continuation
of solid revenue growth in Europe and Latin America in both the shaving
and grooming and personal care categories. North American net sales were
essentially unchanged in the second quarter.
The small appliances product category reported net sales in the second
quarter of fiscal 2014 of $152.5 million versus $154.6 million in the
year-ago quarter. Excluding the negative impact of foreign exchange, net
sales were essentially flat. Higher European net sales from expansion
into new channels and increased distribution at existing retailers were
offset by a decline in North American net sales primarily from a
non-recurrence of promotions. Latin American net sales on a constant
currency basis grew strongly from new product introductions in several
South and Central American countries.
With segment net income, as adjusted, of $35.7 million, the Global
Batteries & Appliances segment reported adjusted EBITDA of $61.2 million
in the second quarter of fiscal 2014, an increase of 7.6 percent
compared to adjusted EBITDA of $56.9 million in the year-earlier
quarter, when segment net income was $34.6 million.
Global Pet Supplies
The Global Pet Supplies segment reported net sales of $159.4 million in
the second quarter of fiscal 2014 compared to $160.5 million last year.
Slightly higher European aquatics and companion animal net sales were
more than offset by lower revenues in both categories in North America,
largely driven by a continuation of aquatics category softness along
with adverse winter weather that negatively affected retail store
traffic.
Segment net income, as adjusted, was $19.4 million in the second quarter
of fiscal 2014 versus $16.4 million in the second quarter of fiscal
2013. Second quarter adjusted EBITDA of $28.5 million increased 3.6
percent compared to $27.5 million in fiscal 2013 due to strong cost
reduction and expense control initiatives that more than offset lower
volumes and unfavorable geographic mix. The segment’s adjusted EBITDA
margin improved to 17.9 percent in the second quarter of fiscal 2014
versus 17.1 percent in the prior year.
Home and Garden
The Home and Garden segment reported record second quarter net sales of
$114.5 million, an increase of 12.3 percent compared to $102.0 million
in the second quarter of fiscal 2013. The increase was driven
predominantly by higher net sales in the lawn and garden controls
product category as a result of strong, early season retail customer
demand and, to a lesser degree, the positive impact of the Liquid Fence
animal repellents acquisition completed on January 3, 2014.
The segment recorded fiscal 2014 second quarter net income, as adjusted,
of $22.8 million versus $20.6 million in the prior year’s quarter.
Record second quarter adjusted EBITDA of $26.4 million increased 11.4
percent compared to $23.7 million a year ago due to the higher net sales
as well as the positive impact of the Liquid Fence acquisition.
The Home and Garden segment achieved record first half results. Net
sales of $148.2 million and adjusted EBITDA of $27.9 million grew 11.8
percent and 25.1 percent, respectively, in the first six months of
fiscal 2014 compared to the first half of fiscal 2013.
Hardware & Home Improvement
The Hardware & Home Improvement (HHI) segment reported net sales of
$266.9 million in the second quarter of fiscal 2014, an increase of 4.0
percent compared to $256.7 million in the prior year’s quarter. Net
sales increased 5.1 percent excluding the negative impact of foreign
exchange. The revenue growth was driven primarily by improvements in the
residential security category and continued international expansion.
Severe winter weather in the U.S. and Canada was a significant negative
impact on net sales results in the second quarter.
The segment recorded net income, as adjusted, of $31.9 million in the
second quarter of fiscal 2014 compared to $0.6 million in the prior
year’s second quarter. Adjusted EBITDA in the second quarter of fiscal
2014 increased 11.3 percent to $45.3 million versus $40.7 million last
year due to the increased volumes. The adjusted EBITDA margin in the
second quarter of fiscal 2014 expanded to 17.0 percent versus 15.9
percent in the previous year’s second quarter.
Liquidity and Debt
Spectrum Brands completed its fiscal 2014 second quarter on March 30,
2014 with a solid liquidity position, including a cash balance of
approximately $93 million and approximately $124 million available on
its ABL facility at what is the peak quarter for working capital
requirements.
As of the end of the second quarter of fiscal 2014, Spectrum Brands had
approximately $3,438 million of debt outstanding at par, consisting of
its ABL facility of $168 million, senior secured Term Loans totaling the
U.S. dollar equivalent of approximately $1,733 million, $520 million of
6.375% senior unsecured notes, $570 million of 6.625% senior unsecured
notes, $300 million of 6.75% senior unsecured notes and approximately
$147 million of capital leases and other obligations. In addition, the
Company had approximately $50 million of letters of credit outstanding.
Fiscal 2014 Outlook
Spectrum Brands expects fiscal 2014 net sales, as reported, to increase
approximately at the rate of U.S. GDP growth compared to fiscal 2013 net
sales, including HHI in the prior year on a pro forma basis. Fiscal 2014
free cash flow is expected to be at least $350 million and capital
expenditures are projected to be approximately $70 million to $75
million. In the second half of fiscal 2014, the Company expects to use
its strong free cash flow to make significant payments on its term debt,
totaling approximately $250 million for the fiscal year, and delever its
balance sheet, resulting in leverage (total debt to adjusted EBITDA) of
approximately 4.2 times or less at the end of the fiscal year.
Conference Call/Webcast Scheduled for 9:00 A.M. Eastern Time Today
Spectrum Brands will host an earnings conference call and webcast at
9:00 a.m. Eastern Time today, May 7. To access the live conference call,
U.S. participants may call 877-556-5260 and international participants
may call 973-532-4903. The conference ID number is 24589724. A live
webcast and related presentation slides will be available by visiting
the Event Calendar page in the Investor Relations section of Spectrum
Brands’ website at www.spectrumbrands.com.
A replay of the live webcast also will be accessible through the Event
Calendar page in the Investor Relations section of the Company’s
website. A telephone replay of the conference call will be available
through Wednesday, May 21. To access this replay, participants may call
855-859-2056 and use the same conference ID number.
About Spectrum Brands Holdings, Inc.
Spectrum Brands Holdings, a member of the Russell 2000 Index, is a
global and diversified consumer products company and a leading supplier
of consumer batteries, residential locksets, residential builders’
hardware, faucets, shaving and grooming products, personal care
products, small household appliances, specialty pet supplies, lawn and
garden and home pest control products, and personal insect repellents.
Helping to meet the needs of consumers worldwide, our Company offers a
broad portfolio of market-leading, well-known and widely trusted brands
including Rayovac®, VARTA®, Kwikset®, Weiser®, Baldwin®, National
Hardware®, Pfister™, Remington®, George Foreman®, Black & Decker®,
Toastmaster®, Farberware®, Tetra®, Marineland®, Nature’s Miracle®,
Dingo®, 8-in-1®, FURminator®, Littermaid®, Spectracide®, Cutter®,
Repel®, Hot Shot®, Black Flag® and Liquid Fence®. Spectrum Brands'
products are sold by the world's top 25 retailers and are available in
more than one million stores in approximately 140 countries. Spectrum
Brands Holdings generated net sales of approximately $4.1 billion in
fiscal 2013. For more information, visit www.spectrumbrands.com.
Non-GAAP Measurements
Management believes that certain non-GAAP financial measures may be
useful in certain instances to provide additional meaningful comparisons
between current results and results in prior operating periods. Excluding
the impact of currency exchange rate fluctuations may provide additional
meaningful information about underlying business trends. In
addition, within this release, including the tables attached hereto,
reference is made to adjusted diluted earnings per share and adjusted
earnings before interest, taxes, depreciation and amortization (EBITDA).
See attached Table 3, “Reconciliation of GAAP Diluted Income (Loss)
Per Share to Adjusted Diluted Earnings Per Share,” for a complete
reconciliation of diluted earnings (loss) per share on a GAAP basis to
adjusted diluted earnings (loss) per share, and see attached Table 4,
“Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA,” for a
reconciliation of GAAP Net Income (Loss) to adjusted EBITDA for the
three months and six months ended March 30, 2014 versus the three months
and six months ended March 31, 2013. See attached Table 6,
“Reconciliation of Forecasted Cash Flow from Operating Activities to
Forecasted Free Cash Flow,” for a reconciliation of Net Cash provided
from Operating Activities to Free Cash Flow for the twelve months ending
September 30, 2014. Adjusted EBITDA is a metric used by
management and frequently used by the financial community which provides
insight into an organization’s operating trends and facilitates
comparisons between peer companies, since interest, taxes, depreciation
and amortization can differ greatly between organizations as a result of
differing capital structures and tax strategies. Adjusted EBITDA also
can be a useful measure of a company’s ability to service debt and is
one of the measures used for determining the Company’s debt covenant
compliance. Adjusted EBITDA excludes certain items that are
unusual in nature or not comparable from period to period. In
addition, the Company’s management uses adjusted diluted earnings per
share as one means of analyzing the Company’s current and future
financial performance and identifying trends in its financial condition
and results of operations. Management believes that adjusted
diluted earnings per share is a useful measure for providing further
insight into our operating performance because it eliminates the effects
of certain items that are not comparable from one period to the next.
The Company’s management believes that free cash flow is useful to
both management and investors in their analysis of the Company’s ability
to service and repay its debt and meet its working capital requirements.
Free cash flow should not be considered in isolation or as a
substitute for pretax income (loss), net income (loss), cash provided by
(used in) operating activities or other statement of operations or cash
flow statement data prepared in accordance with GAAP or as a measure of
profitability or liquidity. In addition, the calculation of free
cash flow does not reflect cash used to service debt and therefore, does
not reflect funds available for investment or discretionary uses. The
Company provides this information to investors to assist in comparisons
of past, present and future operating results and to assist in
highlighting the results of on-going operations. While the
Company’s management believes that non-GAAP measurements are useful
supplemental information, such adjusted results are not intended to
replace the Company’s GAAP financial results and should be read in
conjunction with those GAAP results.
Forward-Looking Statements
Certain matters discussed in this news release and other oral and
written statements by representatives of the Company regarding matters
such as the Company’s ability to meet its expectations for its fiscal
2014 (including its ability to increase its net sales and adjusted
EBITDA) may be forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. We have tried,
whenever possible, to identify these statements by using words like
“future,” “anticipate”, “intend,” “plan,” “estimate,” “believe,”
“expect,” “project,” “forecast,” “could,” “would,” “should,” “will,”
“may,” and similar expressions of future intent or the negative of such
terms. These statements are subject to a number of risks and
uncertainties that could cause results to differ materially from those
anticipated as of the date of this release. Actual results may
differ materially as a result of (1) Spectrum Brands Holdings’ ability
to manage and otherwise comply with its covenants with respect to its
significant outstanding indebtedness, (2) our ability to integrate, and
to realize synergies from, the combined businesses of Spectrum Brands
and the Hardware & Home Improvement Group of Stanley Black & Decker, and
from our purchase of 56 percent of the equity of Shaser, Inc., and from
other bolt-on acquisitions, (3) risks related to changes and
developments in external competitive market factors, such as
introduction of new product features or technological developments,
development of new competitors or competitive brands or competitive
promotional activity or spending, (4) changes in consumer demand for the
various types of products Spectrum Brands Holdings offers, (5)
unfavorable developments in the global credit markets, (6) the impact of
overall economic conditions on consumer spending, (7) fluctuations in
commodities prices, the costs or availability of raw materials or terms
and conditions available from suppliers, (8) changes in the general
economic conditions in countries and regions where Spectrum Brands
Holdings does business, such as stock market prices, interest rates,
currency exchange rates, inflation and consumer spending, (9) Spectrum
Brands Holdings’ ability to successfully implement manufacturing,
distribution and other cost efficiencies and to continue to benefit from
its cost-cutting initiatives, (10) Spectrum Brands Holdings’ ability to
identify, develop and retain key employees, (11) unfavorable weather
conditions and various other risks and uncertainties, including those
discussed herein and those set forth in the securities filings of each
of Spectrum Brands Holdings, Inc. and Spectrum Brands, Inc., including
each of their most recently filed Annual Reports on Form 10-K or
Quarterly Reports on Form 10-Q.
Spectrum Brands Holdings also cautions the reader that its estimates
of trends, market share, retail consumption of its products and reasons
for changes in such consumption are based solely on limited data
available to Spectrum Brands Holdings and management’s reasonable
assumptions about market conditions, and consequently may be inaccurate,
or may not reflect significant segments of the retail market. Spectrum
Brands Holdings also cautions the reader that undue reliance should not
be placed on any forward-looking statements, which speak only as of the
date of this release. Spectrum Brands Holdings undertakes no duty
or responsibility to update any of these forward-looking statements to
reflect events or circumstances after the date of this report or to
reflect actual outcomes.
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|
|
Table 1
|
|
SPECTRUM BRANDS HOLDINGS, INC.
|
|
Condensed Consolidated Statements of Operations
|
|
For the three and six month periods ended March 30, 2014 and
March 31, 2013
|
|
(Unaudited)
|
|
($ in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
|
|
SIX MONTHS
|
|
|
F2014
|
|
F2013
|
|
INC
|
|
F2014
|
|
F2013
|
|
INC
|
|
|
|
|
|
|
%
|
|
|
|
|
|
%
|
|
Net sales
|
$
|
1,021.7
|
|
$
|
987.8
|
|
|
3.4
|
%
|
|
$
|
2,122.3
|
|
$
|
1,858.0
|
|
|
14.2
|
%
|
|
Cost of goods sold
|
|
661.0
|
|
|
662.3
|
|
|
|
|
|
1,378.7
|
|
|
1,243.3
|
|
|
|
|
Restructuring and related charges
|
|
1.1
|
|
|
2.6
|
|
|
|
|
|
2.8
|
|
|
3.7
|
|
|
|
|
Gross profit
|
|
359.6
|
|
|
322.9
|
|
|
11.4
|
%
|
|
|
740.8
|
|
|
611.0
|
|
|
21.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
|
|
165.7
|
|
|
171.0
|
|
|
|
|
|
329.9
|
|
|
299.8
|
|
|
|
|
General and administrative
|
|
75.9
|
|
|
70.4
|
|
|
|
|
|
148.9
|
|
|
127.2
|
|
|
|
|
Research and development
|
|
12.3
|
|
|
11.9
|
|
|
|
|
|
23.1
|
|
|
20.0
|
|
|
|
|
Acquisition and integration related charges
|
|
6.3
|
|
|
12.0
|
|
|
|
|
|
11.8
|
|
|
32.8
|
|
|
|
|
Restructuring and related charges
|
|
6.8
|
|
|
5.3
|
|
|
|
|
|
9.5
|
|
|
10.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
267.0
|
|
|
270.6
|
|
|
|
|
|
523.2
|
|
|
490.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
92.6
|
|
|
52.3
|
|
|
|
|
|
217.6
|
|
|
120.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
47.4
|
|
|
60.4
|
|
|
|
|
|
104.4
|
|
|
130.2
|
|
|
|
|
Other expense, net
|
|
0.8
|
|
|
3.7
|
|
|
|
|
|
1.6
|
|
|
5.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations before income taxes
|
|
44.4
|
|
|
(11.8
|
)
|
|
|
|
|
111.6
|
|
|
(15.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
10.5
|
|
|
29.1
|
|
|
|
|
|
23.3
|
|
|
39.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
33.9
|
|
|
(40.9
|
)
|
|
|
|
|
88.3
|
|
|
(54.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income (loss) attributable to non-controlling interest
|
|
0.1
|
|
|
0.3
|
|
|
|
|
|
0.2
|
|
|
(0.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to controlling interest
|
$
|
33.8
|
|
$
|
(41.2
|
)
|
|
|
|
$
|
88.1
|
|
$
|
(54.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding (a)
|
|
52.7
|
|
|
52.1
|
|
|
|
|
|
52.6
|
|
|
51.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income (loss) per share attributable to controlling interest
|
$
|
0.64
|
|
$
|
(0.79
|
)
|
|
|
|
$
|
1.68
|
|
$
|
(1.05
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares and common stock equivalents outstanding (a) (b)
|
|
53.0
|
|
|
52.1
|
|
|
|
|
|
52.8
|
|
|
51.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income (loss) per share attributable to controlling
interest
|
$
|
0.64
|
|
$
|
(0.79
|
)
|
|
|
|
$
|
1.67
|
|
$
|
(1.05
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per common share
|
$
|
0.30
|
|
$
|
0.25
|
|
|
|
|
$
|
0.55
|
|
$
|
0.25
|
|
|
|
|
(a) Per share figures calculated prior to rounding.
|
|
(b) For the three and six months ended March 31, 2013, we have not
assumed the exercise of common stock equivalents as the impact would
be antidilutive.
|
|
|
|
Table 2
|
|
SPECTRUM BRANDS HOLDINGS, INC.
|
|
Supplemental Financial Data
|
|
As of and for the three and six month periods ended March 30,
2014 and March 31, 2013
|
|
(Unaudited)
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Data
|
|
F2014
|
|
F2013
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
93.4
|
|
$
|
77.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade receivables, net
|
|
$
|
525.2
|
|
$
|
480.0
|
|
|
|
|
|
|
Days Sales Outstanding (a)
|
|
|
43
|
|
|
40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory
|
|
$
|
725.9
|
|
$
|
705.4
|
|
|
|
|
|
|
Inventory Turnover (b)
|
|
|
4.0
|
|
|
4.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt
|
|
$
|
3,429.5
|
|
$
|
3,258.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
|
|
SIX MONTHS
|
|
Supplemental Cash Flow Data
|
|
F2014
|
|
F2013
|
|
F2014
|
|
F2013
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization, excluding amortization of
debt
issuance costs
|
|
$
|
50.5
|
|
$
|
47.2
|
|
|
$
|
95.1
|
|
$
|
78.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
$
|
20.9
|
|
$
|
11.4
|
|
|
$
|
36.8
|
|
$
|
20.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
|
|
SIX MONTHS
|
|
Supplemental Segment Sales & Profitability
|
|
F2014
|
|
F2013
|
|
F2014
|
|
F2013
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
|
|
|
|
|
|
|
|
Global Batteries & Appliances
|
|
$
|
480.9
|
|
$
|
468.6
|
|
|
$
|
1,140.2
|
|
$
|
1,134.6
|
|
|
Global Pet Supplies
|
|
|
159.4
|
|
|
160.5
|
|
|
|
288.5
|
|
|
300.2
|
|
|
Home and Garden
|
|
|
114.5
|
|
|
102.0
|
|
|
|
148.2
|
|
|
132.5
|
|
|
Hardware & Home Improvement
|
|
|
266.9
|
|
|
256.7
|
|
|
|
545.3
|
|
|
290.7
|
|
|
Total net sales
|
|
$
|
1,021.7
|
|
$
|
987.8
|
|
|
$
|
2,122.2
|
|
$
|
1,858.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit
|
|
|
|
|
|
|
|
|
|
Global Batteries & Appliances
|
|
$
|
44.2
|
|
$
|
41.4
|
|
|
$
|
141.4
|
|
$
|
136.8
|
|
|
Global Pet Supplies
|
|
|
20.6
|
|
|
20.4
|
|
|
|
33.6
|
|
|
36.3
|
|
|
Home and Garden
|
|
|
23.1
|
|
|
20.8
|
|
|
|
21.9
|
|
|
16.5
|
|
|
Hardware & Home Improvement
|
|
|
34.8
|
|
|
6.7
|
|
|
|
74.8
|
|
|
3.5
|
|
|
Total segment profit
|
|
|
122.7
|
|
|
89.3
|
|
|
|
271.7
|
|
|
193.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
|
|
|
15.9
|
|
|
17.1
|
|
|
|
30.0
|
|
|
25.4
|
|
|
Acquisition and integration related charges
|
|
|
6.3
|
|
|
12.0
|
|
|
|
11.8
|
|
|
32.8
|
|
|
Restructuring and related charges
|
|
|
7.9
|
|
|
7.9
|
|
|
|
12.3
|
|
|
14.5
|
|
|
Interest expense
|
|
|
47.4
|
|
|
60.4
|
|
|
|
104.4
|
|
|
130.2
|
|
|
Other expense, net
|
|
|
0.8
|
|
|
3.7
|
|
|
|
1.6
|
|
|
5.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
before income taxes
|
|
$
|
44.4
|
|
$
|
(11.8
|
)
|
|
$
|
111.6
|
|
$
|
(15.1
|
)
|
|
(a) Reflects actual days sales outstanding at end of period.
|
|
|
|
|
|
(b) Reflects cost of sales (excluding restructuring and related
charges) during the last twelve months divided by average inventory
during the period.
|
|
|
|
Table 3
|
|
SPECTRUM BRANDS HOLDINGS, INC.
|
|
Reconciliation of GAAP Diluted Income (Loss) Per Share to
Adjusted Diluted Earnings Per Share
|
|
For the three and six month periods ended March 30, 2014 and
March 31, 2013
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
|
|
|
SIX MONTHS
|
|
|
|
F2014
|
|
F2013
|
|
|
F2014
|
|
F2013
|
|
|
Diluted income (loss) per share, as reported
|
|
$
|
0.64
|
|
|
$
|
(0.79
|
)
|
|
|
$
|
1.67
|
|
|
$
|
(1.05
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
Pre-acquisition earnings of HHI
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
0.06
|
|
(a)
|
|
Acquisition and integration related charges
|
|
|
0.08
|
|
(b)
|
|
0.15
|
|
(d)
|
|
|
0.15
|
|
(c)
|
|
0.41
|
|
(e)
|
|
Restructuring and related charges
|
|
|
0.09
|
|
(f)
|
|
0.10
|
|
(g)
|
|
|
0.15
|
|
(f)
|
|
0.18
|
|
(g)
|
|
Debt refinancing costs
|
|
|
—
|
|
|
|
—
|
|
|
|
|
0.14
|
|
(h)
|
|
0.36
|
|
(i)
|
|
Purchase accounting inventory adjustment
|
|
|
—
|
|
|
|
0.32
|
|
(j)
|
|
|
—
|
|
|
|
0.38
|
|
(j)
|
|
Venezuela devaluation
|
|
|
—
|
|
|
|
0.03
|
|
(k)
|
|
|
—
|
|
|
|
0.02
|
|
(k)
|
|
Income taxes
|
|
|
(0.09
|
)
|
(l)
|
|
0.63
|
|
(m
|
)
|
|
|
(0.30
|
)
|
(l)
|
|
0.86
|
|
(m
|
)
|
|
|
|
|
0.08
|
|
|
|
1.23
|
|
|
|
|
0.14
|
|
|
|
2.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income per share, as adjusted
|
|
$
|
0.72
|
|
|
$
|
0.44
|
|
|
|
$
|
1.81
|
|
|
$
|
1.22
|
|
|
|
(a) For the six months ended March 31, 2013, reflects $3.2 million,
net of tax, of pre-acquisition earnings related to the acquired HHI
business. The Pre-acquisition earnings of HHI do not include the TLM
Business as stand alone financial data is not available for the
periods presented. The TLM Business is not deemed material to the
Company's operating results.
|
|
|
|
|
(b) For the three months ended March 30, 2014, reflects $4.1
million, net of tax, of Acquisition and integration related charges,
as follows: (i) $2.4 million related to the acquisition of the HHI
Business, consisting primarily of integration costs; (ii) $0.8
million related to the acquisition of Liquid Fence, consisting
primarily of legal and professional fees; and (iii) $0.9 million
related to the acquisition of Shaser and other acquisition activity,
consisting of legal and professional fees.
|
|
|
|
|
(c) For the six months ended March 30, 2014, reflects $7.7 million,
net of tax, of Acquisition and integration related charges, as
follows: (i) $5.1 million related to the acquisition of the HHI
Business, consisting primarily of integration costs; (ii) $1.1
million related to the acquisition of Liquid Fence, consisting
primarily of legal and professional fees; and (iii) $1.5 million
related to the acquisition of Shaser and other acquisition activity,
consisting of integration costs and legal and professional fees.
|
|
|
|
|
(d) For the three months ended March 31, 2013, reflects $7.8
million, net of tax, of Acquisition and integration related charges
as follows: (i) $6.6 million related to the acquisition of the HHI
Business which consisted primarily of legal and professional fees;
(ii) $0.7 million related to the merger with Russell Hobbs which
consisted primarily of integration costs; (iii) $0.4 million related
to the acquisition of FURminator, consisting primarily of legal and
professional fees; and (iv) $0.1 million related to the acquisition
of Shaser and other acquisition activity, consisting primarily of
legal and professional fees.
|
|
|
|
|
(e) For the six months ended March 31, 2013, reflects $21.3 million,
net of tax, of Acquisition and integration related charges as
follows: (i) $16.1 million related to the acquisition of the HHI
Business which consisted primarily of legal and professional fees;
(ii) $1.6 million related to the merger with Russell Hobbs which
consisted primarily of integration costs; (iii) $0.8 million related
to the acquisition of FURminator, consisting primarily of legal and
professional fees; and (iv) $2.8 million related to the acquisition
of Shaser and other acquisition activity, consisting primarily of
legal and professional fees.
|
|
|
|
|
(f) For the three and six months ended March 30, 2014, reflects $5.1
million and $8.0 million, net of tax, respectively, of Restructuring
and related charges primarily related to the Global Expense
Rationalization Initiatives announced in Fiscal 2013.
|
|
|
|
|
(g) For the three and six months ended March 31, 2013, reflects $5.1
million and $9.4 million, net of tax, respectively, of Restructuring
and related charges primarily related to the Global Cost Reduction
Initiatives announced in Fiscal 2009.
|
|
|
|
|
(h) For the six months ended March 30, 2014, reflects $7.3 million,
net of tax, related to financing fees and the write off of
unamortized debt issuance costs in connection with the replacement
of the Company's Term Loan.
|
|
|
|
|
(i) For the six months ended March 31, 2013, reflects $18.7 million,
net of tax, related to financing fees and the write off of
unamortized debt issuance costs in connection with the replacement
of the Company's Term Loan and the issuance of the 6.375% Notes and
6.625% Notes in connection with the acquisition of the HHI Business.
|
|
|
|
|
(j) For the three and six months ended March 31, 2013, reflects a
non-cash increase to cost of goods sold $16.7 million, net of tax,
and $20.2 million, net of tax, respectively, related to the sales of
inventory that was subject to fair value adjustments in conjunction
with the acquisition of the HHI Business.
|
|
|
|
|
(k) For the three and six months ended March 31, 2013, reflects an
adjustment of $1.3 million, net of tax, related to the devaluation
of the Venezuelan Bolivar Fuerte.
|
|
|
|
|
(l) For the three and six months ended March 30, 2014, reflects
adjustments to income tax expense of $(5.0) million and $(15.8)
million, respectively, to exclude the impact of the valuation
allowance against deferred taxes and other tax related items in
order to reflect a normalized ongoing effective tax rate.
|
|
|
|
|
(m) For the three and six months ended March 31, 2013, reflects
adjustments to income tax expense of $33.3 million and $45.0
million, respectively, to exclude the impact of the valuation
allowance against deferred taxes and other tax related items in
order to reflect a normalized ongoing effective tax rate.
|
|
|
|
Table 4
|
|
SPECTRUM BRANDS HOLDINGS, INC.
|
|
Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA
|
|
For the three month period ended March 30, 2014
|
|
(Unaudited)
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Batteries & Appliances
|
|
Global Pet Supplies
|
|
Home & Garden
|
|
Hardware & Home Improvement
|
|
Corporate / Unallocated Items (a)
|
|
Consolidated Spectrum Brands Holdings, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to controlling interest, as adjusted
(a)
|
$
|
35.8
|
|
|
$
|
19.4
|
|
$
|
22.8
|
|
$
|
31.7
|
|
$
|
(75.9
|
)
|
|
$
|
33.8
|
|
Net (income) loss attributable to non-controlling interest
|
|
(0.1
|
)
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
|
0.1
|
|
Net income (loss), as adjusted (a)
|
|
35.7
|
|
|
|
19.4
|
|
|
22.8
|
|
|
31.9
|
|
|
(75.9
|
)
|
|
|
33.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10.5
|
|
|
|
10.5
|
|
Interest expense
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47.4
|
|
|
|
47.4
|
|
Acquisition and integration related charges
|
|
2.8
|
|
|
|
—
|
|
|
0.3
|
|
|
1.4
|
|
|
1.8
|
|
|
|
6.3
|
|
Restructuring and related charges
|
|
4.9
|
|
|
|
1.0
|
|
|
—
|
|
|
2.0
|
|
|
—
|
|
|
|
7.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBIT
|
|
43.4
|
|
|
|
20.4
|
|
|
23.1
|
|
|
35.3
|
|
|
(16.2
|
)
|
|
|
106.0
|
|
Depreciation and amortization (b)
|
|
17.8
|
|
|
|
8.1
|
|
|
3.3
|
|
|
10.0
|
|
|
11.3
|
|
|
|
50.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
$
|
61.2
|
|
|
$
|
28.5
|
|
$
|
26.4
|
|
$
|
45.3
|
|
$
|
(4.9
|
)
|
|
$
|
156.5
|
|
Note: Amounts calculated prior to rounding.
|
|
|
|
|
|
(a) It is the Company's policy to record Income tax expense and
Interest expense on a consolidated basis. Accordingly, such amounts
are not reflected in the results of the operating segments and are
presented within Corporate/Unallocated Items.
|
|
|
|
|
(b) Included within depreciation and amortization is amortization of
unearned restricted stock compensation.
|
|
|
|
Table 4
|
|
SPECTRUM BRANDS HOLDINGS, INC.
|
|
Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA
|
|
For the six month period ended March 30, 2014
|
|
(Unaudited)
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Batteries & Appliances
|
|
Global Pet Supplies
|
|
Home & Garden
|
|
Hardware & Home Improvement
|
|
Corporate / Unallocated Items (a)
|
|
Consolidated Spectrum Brands Holdings, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to controlling interest, as adjusted
(a)
|
$
|
129.1
|
|
|
$
|
31.9
|
|
$
|
21.5
|
|
$
|
67.1
|
|
$
|
(161.5
|
)
|
|
$
|
88.1
|
|
Net (income) loss attributable to non-controlling interest
|
|
(0.3
|
)
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
|
0.2
|
|
Net income (loss), as adjusted (a)
|
|
128.8
|
|
|
|
31.9
|
|
|
21.5
|
|
|
67.6
|
|
|
(161.5
|
)
|
|
|
88.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23.3
|
|
|
|
23.3
|
|
Interest expense
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
104.4
|
|
|
|
104.4
|
|
Acquisition and integration related charges
|
|
4.7
|
|
|
|
—
|
|
|
0.3
|
|
|
3.6
|
|
|
3.2
|
|
|
|
11.8
|
|
Restructuring and related charges
|
|
7.2
|
|
|
|
1.3
|
|
|
—
|
|
|
3.1
|
|
|
0.7
|
|
|
|
12.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBIT
|
|
140.7
|
|
|
|
33.2
|
|
|
21.8
|
|
|
74.3
|
|
|
(29.9
|
)
|
|
|
240.1
|
|
Depreciation and amortization (b)
|
|
34.7
|
|
|
|
15.7
|
|
|
6.1
|
|
|
20.7
|
|
|
17.9
|
|
|
|
95.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
$
|
175.4
|
|
|
$
|
48.9
|
|
$
|
27.9
|
|
$
|
95.0
|
|
$
|
(12.0
|
)
|
|
$
|
335.2
|
|
Note: Amounts calculated prior to rounding.
|
|
|
|
|
|
(a) It is the Company's policy to record Income tax expense and
Interest expense on a consolidated basis. Accordingly, such amounts
are not reflected in the results of the operating segments and are
presented within Corporate/Unallocated Items.
|
|
|
|
|
(b) Included within depreciation and amortization is amortization of
unearned restricted stock compensation.
|
|
|
|
Table 4
|
|
SPECTRUM BRANDS HOLDINGS, INC.
|
|
Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA
|
|
For the three month period ended March 31, 2013
|
|
(Unaudited)
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Batteries & Appliances
|
|
Global Pet Supplies
|
|
Home & Garden
|
|
Hardware & Home Improvement
|
|
Corporate / Unallocated Items (a)
|
|
Consolidated Spectrum Brands Holdings, Inc.
|
|
Net income (loss) attributable to controlling interest, as adjusted
(a)
|
$
|
34.3
|
|
$
|
16.4
|
|
$
|
20.6
|
|
$
|
0.6
|
|
$
|
(113.2
|
)
|
|
$
|
(41.2
|
)
|
|
Net loss attributable to non-controlling interest
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
0.3
|
|
|
Net income (loss), as adjusted (a)
|
|
34.6
|
|
|
16.4
|
|
|
20.6
|
|
|
0.6
|
|
|
(113.2
|
)
|
|
|
(40.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29.1
|
|
|
|
29.1
|
|
|
Interest expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60.4
|
|
|
|
60.4
|
|
|
Acquisition and integration related charges
|
|
1.9
|
|
|
0.6
|
|
|
—
|
|
|
2.8
|
|
|
6.7
|
|
|
|
12.0
|
|
|
Restructuring and related charges
|
|
1.8
|
|
|
3.1
|
|
|
0.2
|
|
|
2.7
|
|
|
0.1
|
|
|
|
7.9
|
|
|
HHI Business inventory fair value adjustment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25.8
|
|
|
—
|
|
|
|
25.8
|
|
|
Venezuela devaluation
|
|
2.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
2.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBIT
|
|
40.3
|
|
|
20.1
|
|
|
20.8
|
|
|
31.9
|
|
|
(17.0
|
)
|
|
|
96.1
|
|
|
Depreciation and amortization (b)
|
|
16.6
|
|
|
7.4
|
|
|
2.9
|
|
|
8.8
|
|
|
11.5
|
|
|
|
47.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
$
|
56.9
|
|
$
|
27.5
|
|
$
|
23.7
|
|
$
|
40.7
|
|
$
|
(5.5
|
)
|
|
$
|
143.3
|
|
|
Note: Amounts calculated prior to rounding.
|
|
|
|
|
|
(a) It is the Company's policy to record Income tax expense and
Interest expense on a consolidated basis. Accordingly, such amounts
are not reflected in the results of the operating segments and are
presented within Corporate/Unallocated Items.
|
|
|
|
|
(b) Included within depreciation and amortization is amortization of
unearned restricted stock compensation.
|
|
|
|
Table 4
|
|
SPECTRUM BRANDS HOLDINGS, INC.
|
|
Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA
|
|
For the six month period ended March 31, 2013
|
|
(Unaudited)
|
|
($ in millions)
|
|
|
|
|
Global Batteries & Appliances
|
|
Global Pet Supplies
|
|
Home & Garden
|
|
Hardware & Home Improvement
|
|
Corporate / Unallocated Items (a)
|
|
Consolidated Spectrum Brands Holdings, Inc.
|
|
Net (loss) income attributable to controlling interest, as adjusted
(a)
|
$
|
126.8
|
|
|
$
|
26.6
|
|
$
|
16.1
|
|
$
|
(2.9
|
)
|
|
$
|
(221.3
|
)
|
|
$
|
(54.7
|
)
|
|
Net loss attributable to non-controlling interest
|
|
(0.2
|
)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.2
|
)
|
|
Net income (loss), as adjusted (a)
|
|
126.6
|
|
|
|
26.6
|
|
|
16.1
|
|
|
(2.9
|
)
|
|
|
(221.3
|
)
|
|
|
(54.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-acquisition earnings of HHI (b)
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
30.3
|
|
|
|
—
|
|
|
|
30.3
|
|
|
Income tax expense
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
39.8
|
|
|
|
39.8
|
|
|
Interest expense
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
130.2
|
|
|
|
130.2
|
|
|
Acquisition and integration related charges
|
|
3.2
|
|
|
|
1.2
|
|
|
—
|
|
|
2.9
|
|
|
|
25.5
|
|
|
|
32.8
|
|
|
Restructuring and related charges
|
|
3.1
|
|
|
|
8.1
|
|
|
0.4
|
|
|
2.7
|
|
|
|
0.2
|
|
|
|
14.5
|
|
|
HHI Business inventory fair value adjustment
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
31.0
|
|
|
|
—
|
|
|
|
31.0
|
|
|
Venezuela devaluation
|
|
2.0
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
|
2.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBIT
|
|
134.9
|
|
|
|
35.9
|
|
|
16.5
|
|
|
64.0
|
|
|
|
(25.6
|
)
|
|
|
225.7
|
|
|
Depreciation and amortization (c)
|
|
32.7
|
|
|
|
14.7
|
|
|
5.8
|
|
|
10.3
|
|
|
|
14.7
|
|
|
|
78.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
$
|
167.6
|
|
|
$
|
50.6
|
|
$
|
22.3
|
|
$
|
74.3
|
|
|
$
|
(10.9
|
)
|
|
$
|
303.9
|
|
|
Note: Amounts calculated prior to rounding.
|
|
|
|
|
|
(a) It is the Company's policy to record Income tax expense and
Interest expense on a consolidated basis. Accordingly, such amounts
are not reflected in the results of the operating segments and are
presented within Corporate/Unallocated Items.
|
|
|
|
|
(b) The Pre-acquisition earnings of HHI do not include the TLM
Business as stand alone financial data is not available for the
periods presented. The TLM Business is not deemed material to the
Company's operating results.
|
|
|
|
(c) Included within depreciation and amortization is amortization
of unearned restricted stock compensation.
|
|
|
|
Table 5
|
|
SPECTRUM BRANDS HOLDINGS, INC.
|
|
Pro Forma Net Sales Comparison
|
|
For the three and six month periods ended March 30, 2014 and
March 31, 2013
|
|
(Unaudited)
|
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
|
|
|
SIX MONTHS
|
|
|
|
F2014
|
|
F2013
|
|
INC %
|
|
|
F2014
|
|
F2013
|
|
INC %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Spectrum Brands Holdings, Inc. Net sales - as reported
|
|
$
|
1,021.7
|
|
$
|
987.8
|
|
3.4
|
%
|
|
|
$
|
2,122.3
|
|
$
|
1,858.0
|
|
14.2
|
%
|
|
HHI pre-acquisition Net sales (a)
|
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
191.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro Forma Net Sales
|
|
$
|
1,021.7
|
|
$
|
987.8
|
|
3.4
|
%
|
|
|
$
|
2,122.3
|
|
$
|
2,049.8
|
|
3.5
|
%
|
|
(a) Net sales have been adjusted to reflect the acquisition of HHI
as if it occurred at the beginning of each period presented. HHI
pre-acquisition Net sales do not include the TLM Business as stand
alone financial data is not available for the periods presented. The
TLM Business is not deemed material to the Company's operating
results.
|
|
|
|
Table 6
|
|
SPECTRUM BRANDS HOLDINGS, INC.
|
|
Reconciliation of Forecasted Cash Flow from Operating Activities
to Forecasted Free Cash Flow
|
|
For the twelve month period ending September 30, 2014
|
|
(Unaudited)
|
|
($ in millions)
|
|
|
|
|
|
Forecasted:
|
|
|
|
|
|
|
|
Net Cash provided from Operating Activities
|
|
$ 420 - 425
|
|
|
|
|
|
Purchases of property, plant and equipment
|
|
(70) - (75)
|
|
|
|
|
|
Free Cash Flow
|
|
$ 350
|
|
|
|
|
Copyright Business Wire 2014