Spectrum Brands Holdings, Inc. (NYSE: SPB), a global and diversified
consumer products company with market-leading brands, today reported
record fiscal 2014 third quarter results for the period ended June 29,
2014, and reconfirmed its outlook for a fifth consecutive year of record
performance.
The Company’s record third quarter was highlighted by continued growth
from its home and garden, HHI and battery businesses; growth in GAAP
earnings per share, adjusted diluted earnings per share and adjusted
EBITDA; strong margin expansion; and a record fiscal third quarter level
of cost savings from continuous improvement programs across all
divisions.
Spectrum Brands said it had completed $125 million of term debt
reduction to date and reaffirmed plans to reduce term debt by a total of
approximately $250 million by the end of fiscal 2014.
The Company also reiterated expectations for free cash flow to increase
to at least $350 million in fiscal 2014, a significant improvement from
a record $254 million in fiscal 2013 and $208 million in fiscal 2012.
Fiscal 2014 Third Quarter Highlights:
-
Net sales of $1.13 billion in the third quarter of fiscal 2014
increased 3.6 percent versus $1.09 billion a year ago.
-
Net income of $78.0 million and diluted income per share of $1.47
in the third quarter of fiscal 2014 more than doubled compared to net
income of $36.1 million and diluted income per share of $0.69 in the
prior year quarter.
-
Adjusted diluted earnings per share, a non-GAAP measure, of $1.30
in the third quarter of fiscal 2014 increased 44.4 percent compared to
$0.90 last year. See Table 3 for a reconciliation to GAAP earnings per
share.
-
Adjusted EBITDA, a non-GAAP measure, of $202.3 million in the third
quarter of fiscal 2014 grew 7.3 percent versus $188.5 million in
fiscal 2013, representing the 15th
consecutive quarter of year-over-year adjusted EBITDA growth. See
Table 4 for a reconciliation to GAAP net income.
-
Adjusted EBITDA margin, a non-GAAP measure, in the third quarter of
fiscal 2014 increased to 17.9 percent compared to 17.3 percent in the
year-ago quarter. See Table 4 for a reconciliation to GAAP net income.
-
Term debt reduced by $125 million to date and Company reiterates
plan for total cumulative term debt paydown of approximately $250
million by the end of fiscal 2014 to delever the balance sheet.
-
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.
“Our record third quarter performance, which followed record results in
the first two quarters, maintains the momentum we have to deliver a
fifth consecutive year of record financial performance and growth in
fiscal 2014,” said Dave Lumley, Chief Executive Officer of Spectrum
Brands Holdings.
“We have delivered solid, consistent sales growth every quarter this
year of about 3.5 percent in what we believe remains a challenging
global environment with very sluggish consumer POS and retail store
traffic, especially in North America, along with tight retailer
inventory levels and reorder rates,” he said. “Our adjusted EBITDA grew
at about twice the rate of sales in the third quarter, and we are
pleased with the strong expansion of our gross margin and adjusted
EBITDA margin. We are on track to deliver a seventh consecutive year of
adjusted EBITDA margin growth.
“The resilience and reliability of our businesses in today’s difficult
global environment is a testament to our operating model, go-to-market
strategies, brand strength and diversity, and strong retailer
relationships,” Mr. Lumley said. “Our Spectrum Value Model works
effectively and resonates well with retailers and consumers. ‘Same or
better performance/less price,’ value-branded Spectrum Brands products
are winning in the marketplace with today’s smart shoppers who are
focusing more and more on value. Importantly, our brands are largely
non-discretionary, non-premium priced, home-related, replacement
packaged goods used daily by consumers.
“Given consumers’ growing preference for on-line shopping and product
ratings and price comparisons, we are increasing our investment and
resources to partner closely with our retail customers’ e-commerce
platforms to help them increase overall sales,” he added. “Our
e-commerce sales are showing solid growth so far this year, especially
in our personal care, small appliance and pet businesses.
“Similar to the first two quarters, we achieved a record level of
continuous improvement savings for a fiscal third 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 now and throughout fiscal 2015.
“We 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 Third Quarter Consolidated Financial Results
Spectrum Brands Holdings reported record net sales of $1.13 billion in
the third quarter of fiscal 2014, an increase of 3.6 percent compared to
$1.09 billion a year earlier. The improvement was the result of higher
net sales in the Company’s home and garden, HHI and battery businesses.
Gross profit and gross profit margin in the third quarter of fiscal 2014
was $417.0 million and 37.0 percent, respectively, compared to $382.7
million and 35.1 percent last year.
Spectrum Brands reported higher net income of $78.0 million, or $1.47
diluted income per share, in the third quarter of fiscal 2014 on average
shares and common stock equivalents outstanding of 53.0 million. In
fiscal 2013, the Company reported net income of $36.1 million, or $0.69
diluted income per share, on average shares and common stock equivalents
outstanding of 52.7 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 $1.30 in the third quarter of fiscal
2014, a 44.4 percent increase compared to $0.90 in the prior year.
Adjusted EBITDA of $202.3 million in the third quarter of fiscal 2014
increased 7.3 percent compared to adjusted EBITDA of $188.5 million in
fiscal 2013, which represented the 15th consecutive quarter
of year-over-year adjusted EBITDA growth. Adjusted EBITDA as a
percentage of net sales (adjusted EBITDA margin) improved to 17.9
percent compared to 17.3 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. See Table 4 for a reconciliation to GAAP net income.
Fiscal 2014 Nine Months Consolidated Financial Results
Net sales of $3.25 billion for the nine months of fiscal 2014 increased
10.3 percent compared to $2.95 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 and battery businesses.
Including HHI as if part of the Company for all of last year’s nine
months on a pro forma basis, net sales of $3.25 billion increased 3.5
percent compared to $3.14 billion last year.
The Company reported GAAP net income of $166.2 million, or $3.14 diluted
income per share, in the nine months of fiscal 2014 on average shares
and common stock equivalents outstanding of 52.9 million. In the nine
months of fiscal 2013, the Company reported a GAAP net loss of $18.5
million, or $0.36 diluted loss per share, on average shares and common
stock equivalents outstanding of 52.0 million. Adjusted for certain
items in both years’ nine 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 $3.11 in the nine
months of fiscal 2014, a 46.7 percent increase compared to $2.12 in last
year’s nine months.
Fiscal 2014 nine months adjusted EBITDA of $537.5 million increased 9.1
percent compared to adjusted EBITDA for the nine months of fiscal 2013
of $492.4 million, which includes the results of HHI as if acquired by
Spectrum Brands at the beginning of last year. The adjusted EBITDA
margin increased to 16.5 percent compared to 15.7 percent last year. See
Table 4 for a reconciliation to GAAP net income.
Fiscal 2014 Third Quarter Segment Level Data
Global Batteries & Appliances
The Global Batteries & Appliances segment reported increased fiscal 2014
third quarter net sales of $494.8 million versus $491.6 million in the
year-ago quarter. Higher battery and personal care net sales more than
offset lower small appliances revenues.
Global battery sales in the third quarter of fiscal 2014 of $213.3
million improved 2.9 percent compared to $207.3 million in the third
quarter of fiscal 2013. All geographic regions contributed to the
increase. North American battery growth was attributable to retailer
distribution gains. In Europe, VARTA® battery growth was driven
by retailer distribution gains and promotions. Latin American battery
revenues increased on a constant currency basis as a result of LED and
compact fluorescent light bulb category growth, particularly in Brazil,
and distribution gains in Central America.
Net sales for the global personal care product category of $117.6
million in the third quarter of fiscal 2014 increased 1.8 percent versus
$115.5 million last year. North America, Europe and Latin America all
posted slight improvements.
The small appliances product category reported net sales in the third
quarter of fiscal 2014 of $163.9 million versus $168.7 million in the
year-ago quarter. Higher European revenues from new products and
increased distribution at existing retailers were offset by declines in
Latin America due to the exit from lower promotional activities and in
North America, predominantly from the exit of low-margin promotions at
several retailers.
With segment net income, as adjusted, of $44.4 million, the Global
Batteries & Appliances segment reported adjusted EBITDA of $67.0 million
in the third quarter of fiscal 2014, an increase of 14.1 percent
compared to adjusted EBITDA of $58.7 million in the year-ago quarter,
when segment net income was $32.2 million. See Table 4 for a
reconciliation to GAAP net income.
Global Pet Supplies
The Global Pet Supplies segment reported net sales of $152.2 million in
the third quarter of fiscal 2014 compared to $156.4 million last year.
The decrease was predominantly attributable to lower aquatics sales in
both North America and Europe from a continuation of aquatics category
softness. Companion animal net sales improved slightly.
Segment net income, as adjusted, was $22.3 million in the third quarter
of fiscal 2014 versus $24.5 million in the third quarter of fiscal 2013.
Third quarter adjusted EBITDA of $30.7 million decreased from $33.7
million in fiscal 2013 due to the lower aquatics category sales and
unfavorable price mix. See Table 4 for a reconciliation to GAAP net
income.
Home and Garden
The Home and Garden segment reported record third quarter net sales of
$174.6 million, an increase of 11.5 percent compared to $156.6 million
in the third quarter of fiscal 2013. The increase was predominantly due
to higher net sales in the personal and area repellent category driven
by market share gains and favorable weather coupled with improved
household controls sales due to distribution gains at key retailers.
Also contributing to the increase, albeit to a lesser degree, was the
positive impact of the Liquid Fence animal repellents acquisition
completed on January 2, 2014.
The segment recorded fiscal 2014 third quarter net income, as adjusted,
of $47.8 million versus $42.8 million in the prior year’s quarter.
Record third quarter adjusted EBITDA of $51.6 million increased 12.2
percent compared to $46.0 million a year ago due to the higher net sales
as well as the positive impact of the Liquid Fence acquisition. See
Table 4 for a reconciliation to GAAP net income.
The Home and Garden segment achieved record nine month results. Net
sales of $322.9 million and adjusted EBITDA of $79.6 million grew 11.7
percent and 16.5 percent, respectively, in the nine months of fiscal
2014 compared to the same period in fiscal 2013. The adjusted EBITDA
margin was 24.7 percent in the nine months of fiscal 2014 compared to
23.6 percent in last year’s comparable period. See Table 4 for a
reconciliation to GAAP net income.
Hardware & Home Improvement
The Hardware & Home Improvement (HHI) segment reported net sales of
$306.9 million in the third quarter of fiscal 2014, an increase of 7.6
percent compared to $285.2 million in the prior year’s quarter. The
revenue growth was primarily attributable to improvements in the U.S.
residential security category driven by SmartKey locksets and, to a
lesser degree, from increases in the U.S. plumbing and builders’
hardware categories, along with continued international expansion.
The segment recorded net income, as adjusted, of $48.3 million in the
third quarter of fiscal 2014 compared to $40.1 million in the prior
year’s third quarter. Adjusted EBITDA in the third quarter of fiscal
2014 increased 12.8 percent to $59.8 million versus $53.0 million last
year due to the increased revenues. The adjusted EBITDA margin in the
third quarter of fiscal 2014 expanded to 19.5 percent versus 18.6
percent in last year’s third quarter. See Table 4 for a reconciliation
to GAAP net income.
Liquidity and Debt
Spectrum Brands completed its fiscal 2014 third quarter on June 29, 2014
with a solid liquidity position, including a cash balance of
approximately $85 million and approximately $194 million available on
its ABL facility.
As of the end of the third quarter of fiscal 2014, Spectrum Brands had
approximately $3,344 million of debt outstanding at par, consisting of
its ABL facility of $110 million, senior secured Term Loans totaling the
U.S. dollar equivalent of approximately $1,695 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
$149 million of capital leases and other obligations. In addition, the
Company had approximately $54 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. Spectrum Brands has repaid approximately $125 million of term
debt through July of fiscal 2014. The Company expects to use its strong
free cash flow to make additional payments on its term debt in the
remaining two months of the fiscal year for a total of approximately
$250 million, and thereby further 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, July 30. 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
68789256. 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, August 13. 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 nine months ended June 29, 2014 versus the three months
and nine months ended June 30, 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.
|
Table 1
|
|
SPECTRUM BRANDS HOLDINGS, INC.
|
|
Condensed Consolidated Statements of Operations
|
|
For the three and nine month periods ended June 29, 2014 and June
30, 2013
|
|
(Unaudited)
|
|
($ in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED
|
|
NINE MONTHS ENDED
|
|
|
|
|
2014
|
|
2013
|
|
INC %
|
|
2014
|
|
2013
|
|
INC %
|
|
Net sales
|
|
|
$
|
1,128.5
|
|
$
|
1,089.8
|
|
3.6
|
%
|
|
$
|
3,250.8
|
|
$
|
2,947.8
|
|
|
10.3
|
%
|
|
Cost of goods sold
|
|
|
|
710.9
|
|
|
706.1
|
|
|
|
|
2,089.6
|
|
|
1,949.3
|
|
|
|
|
Restructuring and related charges
|
|
|
|
0.6
|
|
|
1.0
|
|
|
|
|
3.3
|
|
|
4.7
|
|
|
|
|
Gross profit
|
|
|
|
417.0
|
|
|
382.7
|
|
9.0
|
%
|
|
|
1,157.9
|
|
|
993.8
|
|
|
16.5
|
%
|
|
Selling
|
|
|
|
171.8
|
|
|
165.2
|
|
|
|
|
501.8
|
|
|
465.0
|
|
|
|
|
General and administrative
|
|
|
|
78.5
|
|
|
70.4
|
|
|
|
|
227.4
|
|
|
197.6
|
|
|
|
|
Research and development
|
|
|
|
12.2
|
|
|
11.5
|
|
|
|
|
35.2
|
|
|
31.5
|
|
|
|
|
Acquisition and integration related charges
|
|
|
2.7
|
|
|
7.7
|
|
|
|
|
14.5
|
|
|
40.5
|
|
|
|
|
Restructuring and related charges
|
|
|
|
3.1
|
|
|
12.2
|
|
|
|
|
12.7
|
|
|
23.0
|
|
|
|
|
Total operating expenses
|
|
|
|
268.3
|
|
|
267.0
|
|
|
|
|
791.6
|
|
|
757.6
|
|
|
|
|
Operating income
|
|
|
|
148.7
|
|
|
115.7
|
|
|
|
|
366.3
|
|
|
236.2
|
|
|
|
|
Interest expense
|
|
|
|
47.3
|
|
|
61.5
|
|
|
|
|
151.7
|
|
|
191.8
|
|
|
|
|
Other expense, net
|
|
|
|
2.8
|
|
|
2.6
|
|
|
|
|
4.4
|
|
|
7.9
|
|
|
|
|
Income from continuing operations before income taxes
|
|
|
98.6
|
|
|
51.6
|
|
|
|
|
210.2
|
|
|
36.5
|
|
|
|
|
Income tax expense
|
|
|
|
20.6
|
|
|
15.2
|
|
|
|
|
43.8
|
|
|
54.9
|
|
|
|
|
Net income (loss)
|
|
|
|
78.0
|
|
|
36.4
|
|
|
|
|
166.4
|
|
|
(18.4
|
)
|
|
|
|
Less: Net income attributable to
non-controlling interest
|
|
|
—
|
|
|
0.3
|
|
|
|
|
0.2
|
|
|
0.1
|
|
|
|
|
Net income (loss) attributable to
controlling interest
|
|
$
|
78.0
|
|
$
|
36.1
|
|
|
|
$
|
166.2
|
|
$
|
(18.5
|
)
|
|
|
|
Average shares outstanding (a)
|
|
|
|
52.7
|
|
|
52.1
|
|
|
|
|
52.6
|
|
|
52.0
|
|
|
|
|
Basic income (loss) per share attributable
to controlling interest
|
|
$
|
1.48
|
|
$
|
0.69
|
|
|
|
$
|
3.16
|
|
$
|
(0.36
|
)
|
|
|
|
Average shares and common stock equivalents outstanding (a) (b)
|
|
|
53.0
|
|
|
52.7
|
|
|
|
|
52.9
|
|
|
52.0
|
|
|
|
|
Diluted income (loss) per share attributable
to controlling interest
|
|
$
|
1.47
|
|
$
|
0.69
|
|
|
|
$
|
3.14
|
|
$
|
(0.36
|
)
|
|
|
|
Cash dividends declared per common share
|
|
$
|
0.30
|
|
$
|
0.25
|
|
|
|
$
|
0.85
|
|
$
|
0.50
|
|
|
|
|
(a) Per share figures calculated prior to rounding.
|
|
(b) For the nine months ended June 30, 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 nine month periods ended June 29,
2014 and June 30, 2013
|
|
(Unaudited)
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Data
|
|
F2014
|
|
F2013
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
85.1
|
|
$
|
99.0
|
|
|
|
|
|
|
|
Trade receivables, net
|
|
$
|
523.6
|
|
$
|
479.3
|
|
|
|
|
|
|
|
Days Sales Outstanding (a)
|
|
|
42.0
|
|
|
39.0
|
|
|
|
|
|
|
|
Inventory
|
|
$
|
734.8
|
|
$
|
707.3
|
|
|
|
|
|
|
|
Inventory Turnover (b)
|
|
|
4.0
|
|
|
4.0
|
|
|
|
|
|
|
|
Total debt
|
|
$
|
3,336.6
|
|
$
|
3,226.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
|
|
NINE MONTHS
|
|
Supplemental Cash Flow Data
|
|
F2014
|
|
F2013
|
|
F2014
|
|
F2013
|
|
Depreciation and amortization, excluding amortization of debt
issuance costs
|
|
$
|
50.0
|
|
$
|
54.5
|
|
$
|
145.1
|
|
$
|
132.7
|
|
Capital expenditures
|
|
$
|
14.1
|
|
$
|
24.5
|
|
$
|
50.9
|
|
$
|
45.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
|
|
NINE MONTHS
|
|
Supplemental Segment Sales & Profitability
|
|
F2014
|
|
F2013
|
|
F2014
|
|
F2013
|
|
Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Batteries & Appliances
|
|
$
|
494.8
|
|
$
|
491.6
|
|
$
|
1,635.0
|
|
$
|
1,626.2
|
|
Global Pet Supplies
|
|
|
152.2
|
|
|
156.4
|
|
|
440.7
|
|
|
456.6
|
|
Home and Garden
|
|
|
174.6
|
|
|
156.6
|
|
|
322.9
|
|
|
289.1
|
|
Hardware & Home Improvement
|
|
|
306.9
|
|
|
285.2
|
|
|
852.2
|
|
|
575.9
|
|
Total net sales
|
|
$
|
1,128.5
|
|
$
|
1,089.8
|
|
$
|
3,250.8
|
|
$
|
2,947.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Batteries & Appliances
|
|
$
|
49.1
|
|
$
|
44.9
|
|
$
|
190.6
|
|
$
|
181.7
|
|
Global Pet Supplies
|
|
|
22.9
|
|
|
26.5
|
|
|
56.5
|
|
|
62.8
|
|
Home and Garden
|
|
|
48.4
|
|
|
43.1
|
|
|
70.2
|
|
|
59.6
|
|
Hardware & Home Improvement
|
|
|
50.7
|
|
|
43.0
|
|
|
125.5
|
|
|
46.5
|
|
Total segment profit
|
|
|
171.1
|
|
|
157.5
|
|
|
442.8
|
|
|
350.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
|
|
|
16.0
|
|
|
20.9
|
|
|
46.0
|
|
|
46.2
|
|
Acquisition and integration related charges
|
|
|
2.7
|
|
|
7.7
|
|
|
14.5
|
|
|
40.5
|
|
Restructuring and related charges
|
|
|
3.7
|
|
|
13.2
|
|
|
16.0
|
|
|
27.7
|
|
Interest expense
|
|
|
47.3
|
|
|
61.5
|
|
|
151.7
|
|
|
191.8
|
|
Other expense, net
|
|
|
2.8
|
|
|
2.6
|
|
|
4.4
|
|
|
7.9
|
|
Income from continuing operations before income taxes
|
|
$
|
98.6
|
|
$
|
51.6
|
|
$
|
210.2
|
|
$
|
36.5
|
|
(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 nine month periods ended June 29, 2014 and June
30, 2013
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
|
|
NINE MONTHS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F2014
|
|
F2013
|
|
F2014
|
|
F2013
|
|
Diluted income (loss) per share, as reported
|
|
$
|
1.47
|
|
|
|
$
|
0.69
|
|
|
|
$
|
3.14
|
|
|
|
$
|
(0.36
|
)
|
|
|
Adjustments, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-acquisition earnings of HHI
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
0.06
|
|
(a)
|
|
Acquisition and integration related charges
|
|
|
0.03
|
|
(b)
|
|
|
0.10
|
|
(d)
|
|
|
0.18
|
|
(c)
|
|
|
0.50
|
|
(e)
|
|
Restructuring and related charges
|
|
|
0.05
|
|
(f)
|
|
|
0.16
|
|
(g)
|
|
|
0.20
|
|
(f)
|
|
|
0.34
|
|
(g)
|
|
Debt refinancing costs
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
0.14
|
|
(h)
|
|
|
0.36
|
|
(i)
|
|
Purchase accounting inventory adjustment
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
0.39
|
|
(j)
|
|
Income taxes
|
|
|
(0.26
|
)
|
(k)
|
|
|
(0.05
|
)
|
(l)
|
|
|
(0.56
|
)
|
(k)
|
|
|
0.80
|
|
(l)
|
|
Other
|
|
|
0.01
|
|
(m)
|
|
|
—
|
|
|
|
|
0.01
|
|
(m)
|
|
|
0.03
|
|
(n)
|
|
|
|
|
(0.17
|
)
|
|
|
|
0.21
|
|
|
|
|
(0.03
|
)
|
|
|
|
2.48
|
|
|
|
Diluted income per share, as adjusted
|
|
$
|
1.30
|
|
|
|
$
|
0.90
|
|
|
|
$
|
3.11
|
|
|
|
$
|
2.12
|
|
|
|
(a) For the nine months ended June 30, 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
period presented. The TLM Business is not deemed material to the
Company's operating results.
|
|
|
|
(b) For the three months ended June 29, 2014, reflects $1.7 million,
net of tax, of Acquisition and integration related charges, as
follows: (i) $2.2 million related to the acquisition of the HHI
Business, consisting primarily of integration costs; (ii) $0.4
million related to the acquisition of Liquid Fence, consisting
primarily of legal and professional fees; (iii) $0.1 million related
to the acquisition of Shaser; and (iv) $(1.0) million related other
adjustments.
|
|
|
|
(c) For the nine months ended June 29, 2014, reflects $9.4 million,
net of tax, of Acquisition and integration related charges, as
follows: (i) $7.3 million related to the acquisition of the HHI
Business, consisting primarily of integration costs, legal and
professional fees; (ii) $1.6 million related to the acquisition of
Liquid Fence, consisting primarily of legal and professional fees;
and (iii) $0.5 million related to the acquisition of Shaser.
|
|
|
|
(d) For the three months ended June 30, 2013, reflects $5.0 million,
net of tax, of Acquisition and integration related charges as
follows: (i) $4.1 million related to the acquisition of the HHI
Business which consisted primarily of legal and professional fees;
(ii) $0.2 million related to the acquisition of FURminator,
consisting primarily of legal and professional fees; (iii) $0.4
million related to the Merger with Russell Hobbs, consisting of
integration costs; and (iv) $0.3 million related to the acquisition
of Shaser and other acquisition activity, consisting primarily of
legal and professional fees.
|
|
|
|
(e) For the nine months ended June 30, 2013, reflects $26.4 million,
net of tax, of Acquisition and integration related charges, as
follows: (i) $20.2 million related to the acquisition of the HHI
Business which consisted primarily of legal and professional fees;
(ii) $2.9 million related to the acquisition of Shaser consisting of
integration and legal and professional services; (iii) $1.8 million
related to the Merger with Russell Hobbs, consisting of integration
costs; and (iv) $1.5 million related to the acquisition of
FURminator and other acquisition activity, consisting primarily of
legal and professional fees.
|
|
|
|
(f) For the three and nine months ended June 29, 2014, reflects $2.4
million $10.4 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 nine months ended June 30, 2013, reflects $8.6
million and $18.0 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 nine months ended June 29, 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 nine months ended June 30, 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 nine months ended June 30, 2013, reflects a $20.2
million, net of tax, non-cash increase to cost of goods sold 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 nine months ended June 29, 2014, reflects
adjustments to income tax expense of $(14.0) million and $(29.7)
million, respectively, to exclude the impact of adjusting the
valuation allowance against deferred taxes and other tax related
items in order to reflect a normalized ongoing effective tax rate.
|
|
|
|
(l) For the three and nine months ended June 30, 2013, reflects
adjustments to income tax expense of $(2.9) million and $42.2
million, respectively, to exclude the impact of adjusting 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 nine months ended June 29, 2014, reflects
adjustments for the accelerated amortization of stock compensation
related to a retention agreement entered into with a key executive.
|
|
|
|
(n) For the nine months ended June 30, 2013, reflects an adjustment
of $1.3 million, net of tax, related to the devaluation of the
Venezuelan Bolivar Fuerte.
|
|
Table 4
|
|
SPECTRUM BRANDS HOLDINGS, INC.
|
|
Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA
|
|
For the three month period ended June 29, 2014
|
|
(Unaudited)
|
|
($ 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)
|
|
$
|
44.5
|
|
|
$
|
22.3
|
|
$
|
47.8
|
|
$
|
48.2
|
|
$
|
(84.8
|
)
|
|
$
|
78.0
|
|
Net (income) loss attributable to non-controlling interest
|
|
|
(0.1
|
)
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
|
—
|
|
Net income (loss), as adjusted (a)
|
|
|
44.4
|
|
|
|
22.3
|
|
|
47.8
|
|
|
48.3
|
|
|
(84.8
|
)
|
|
|
78.0
|
|
Income tax expense
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20.6
|
|
|
|
20.6
|
|
Interest expense
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47.3
|
|
|
|
47.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and integration related charges
|
|
|
1.3
|
|
|
|
—
|
|
|
0.6
|
|
|
0.4
|
|
|
0.4
|
|
|
|
2.7
|
|
Restructuring and related charges
|
|
|
2.6
|
|
|
|
0.5
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
|
|
3.7
|
|
Adjusted EBIT
|
|
|
48.3
|
|
|
|
22.8
|
|
|
48.4
|
|
|
49.3
|
|
|
(16.5
|
)
|
|
|
152.3
|
|
Depreciation and amortization (b)
|
|
|
18.7
|
|
|
|
7.9
|
|
|
3.2
|
|
|
10.5
|
|
|
9.7
|
|
|
|
50.0
|
|
Adjusted EBITDA
|
|
$
|
67.0
|
|
|
$
|
30.7
|
|
$
|
51.6
|
|
$
|
59.8
|
|
$
|
(6.8
|
)
|
|
$
|
202.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 three month period ended June 30, 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)
|
|
$
|
32.4
|
|
|
$
|
24.5
|
|
$
|
42.8
|
|
$
|
39.6
|
|
$
|
(103.2
|
)
|
|
$
|
36.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to non-controlling interest
|
|
|
(0.2
|
)
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
|
0.3
|
|
Net income (loss), as adjusted (a)
|
|
|
32.2
|
|
|
|
24.5
|
|
|
42.8
|
|
|
40.1
|
|
|
(103.2
|
)
|
|
|
36.4
|
|
Income tax expense
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15.2
|
|
|
|
15.2
|
|
Interest expense
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
61.5
|
|
|
|
61.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and integration related charges
|
|
|
1.2
|
|
|
|
0.4
|
|
|
0.1
|
|
|
1.2
|
|
|
4.8
|
|
|
|
7.7
|
|
Restructuring and related charges
|
|
|
8.3
|
|
|
|
1.4
|
|
|
0.2
|
|
|
2.3
|
|
|
1.0
|
|
|
|
13.2
|
|
Adjusted EBIT
|
|
|
41.7
|
|
|
|
26.3
|
|
|
43.1
|
|
|
43.6
|
|
|
(20.7
|
)
|
|
|
134.0
|
|
Depreciation and amortization (b)
|
|
|
17.0
|
|
|
|
7.4
|
|
|
2.9
|
|
|
9.4
|
|
|
17.8
|
|
|
|
54.5
|
|
Adjusted EBITDA
|
|
$
|
58.7
|
|
|
$
|
33.7
|
|
$
|
46.0
|
|
$
|
53.0
|
|
$
|
(2.9
|
)
|
|
$
|
188.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 nine month period ended June 29, 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)
|
|
$
|
173.6
|
|
|
$
|
54.2
|
|
$
|
69.3
|
|
$
|
115.3
|
|
$
|
(246.2
|
)
|
|
$
|
166.2
|
|
Net (income) loss attributable to non-controlling interest
|
|
|
(0.4
|
)
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
|
|
0.2
|
|
Net income (loss), as adjusted (a)
|
|
|
173.2
|
|
|
|
54.2
|
|
|
69.3
|
|
|
115.9
|
|
|
(246.2
|
)
|
|
|
166.4
|
|
Income tax expense
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43.8
|
|
|
|
43.8
|
|
Interest expense
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
151.7
|
|
|
|
151.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and integration related charges
|
|
|
5.9
|
|
|
|
—
|
|
|
0.9
|
|
|
4.0
|
|
|
3.7
|
|
|
|
14.5
|
|
Restructuring and related charges
|
|
|
9.8
|
|
|
|
1.8
|
|
|
—
|
|
|
3.7
|
|
|
0.7
|
|
|
|
16.0
|
|
Adjusted EBIT
|
|
|
188.9
|
|
|
|
56.0
|
|
|
70.2
|
|
|
123.6
|
|
|
(46.3
|
)
|
|
|
392.4
|
|
Depreciation and amortization (b)
|
|
|
53.4
|
|
|
|
23.6
|
|
|
9.4
|
|
|
31.2
|
|
|
27.5
|
|
|
|
145.1
|
|
Adjusted EBITDA
|
|
$
|
242.3
|
|
|
$
|
79.6
|
|
$
|
79.6
|
|
$
|
154.8
|
|
$
|
(18.8
|
)
|
|
$
|
537.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 nine month period ended June 30, 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)
|
|
$
|
159.1
|
|
|
$
|
51.1
|
|
$
|
59.0
|
|
$
|
36.7
|
|
$
|
(324.4
|
)
|
|
$
|
(18.5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to non-controlling interest
|
|
|
(0.4
|
)
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
|
0.1
|
|
|
Net income (loss), as adjusted (a)
|
|
|
158.7
|
|
|
|
51.1
|
|
|
59.0
|
|
|
37.2
|
|
|
(324.4
|
)
|
|
|
(18.4
|
)
|
|
Pre-acquisition earnings of HHI (b)
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
30.3
|
|
|
—
|
|
|
|
30.3
|
|
|
Income tax expense
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54.9
|
|
|
|
54.9
|
|
|
Interest expense
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
191.7
|
|
|
|
191.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and integration related charges
|
|
|
4.4
|
|
|
|
1.6
|
|
|
0.1
|
|
|
4.1
|
|
|
30.3
|
|
|
|
40.5
|
|
|
Restructuring and related charges
|
|
|
11.5
|
|
|
|
9.5
|
|
|
0.5
|
|
|
5.0
|
|
|
1.2
|
|
|
|
27.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HHI Business inventory fair value adjustment
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
31.0
|
|
|
—
|
|
|
|
31.0
|
|
|
Venezuela devaluation
|
|
|
2.0
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
2.0
|
|
|
Adjusted EBIT
|
|
|
176.6
|
|
|
|
62.2
|
|
|
59.6
|
|
|
107.6
|
|
|
(46.3
|
)
|
|
|
359.7
|
|
|
Depreciation and amortization (c)
|
|
|
49.7
|
|
|
|
22.0
|
|
|
8.7
|
|
|
19.7
|
|
|
32.6
|
|
|
|
132.7
|
|
|
Adjusted EBITDA
|
|
$
|
226.3
|
|
|
$
|
84.2
|
|
$
|
68.3
|
|
$
|
127.3
|
|
$
|
(13.7
|
)
|
|
$
|
492.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 nine month periods ended June 29, 2014 and June
30, 2013
|
|
(Unaudited)
|
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
|
|
NINE MONTHS
|
|
|
|
F2014
|
|
F2013
|
|
INC %
|
|
F2014
|
|
F2013
|
|
INC %
|
|
Spectrum Brands Holdings, Inc.
Net sales - as reported
|
$
|
1,128.5
|
|
$
|
1,089.8
|
|
3.6
|
%
|
|
$
|
3,250.8
|
|
$
|
2,947.8
|
|
10.3
|
%
|
|
HHI pre-acquisition Net sales (a)
|
|
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
191.8
|
|
|
|
Pro Forma Net Sales
|
|
$
|
1,128.5
|
|
$
|
1,089.8
|
|
3.6
|
%
|
|
$
|
3,250.8
|
|
$
|
3,139.6
|
|
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