For the third consecutive year, Spectrum Brands delivered record consolidated adjusted EBITDA for fiscal 2012 of $485.3 million, a 6.2 percent increase versus $457.1 million in fiscal 2011. 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. Adjusted EBITDA as a percentage of net sales for fiscal 2012 improved to a record 14.9 percent compared to 14.3 percent last year. The improved adjusted EBITDA was predominantly driven by increases in the Company’s Global Pet Supplies and Home and Garden segments, which included adjusted EBITDA of $19.1 million from the acquisitions of FURminator® and the Black Flag®/TAT®brands. Excluding the results from acquisitions, adjusted EBITDA for fiscal 2012 grew 2.0 percent versus prior year. Fiscal 2012 adjusted EBITDA was negatively impacted by $16.4 million of foreign exchange. Excluding the negative foreign exchange impact, fiscal 2012 adjusted EBITDA grew 9.7 percent.
Fiscal 2012 Fourth Quarter Consolidated Financial Results
Spectrum Brands Holdings reported consolidated net sales of $832.6 million for the fourth quarter of fiscal 2012, a slight increase compared to $827.3 million for fiscal 2011. Higher revenues for the Global Pet Supplies and Home and Garden segments, including net sales from the previously mentioned FURminator® and Black Flag®/TAT® brands acquisitions, more than offset lower net sales for the Global Batteries & Appliances segment, which was primarily due to the planned exit from certain low margin North American small appliances promotional business. Excluding the negative foreign exchange impact of $29.3 million, fiscal 2012 fourth quarter net sales grew 4.2 percent.
Gross profit and gross profit margin for the fourth quarter of fiscal 2012 of $280.0 million and 33.6 percent, respectively, were essentially unchanged compared to $280.5 million and 33.9 percent last year. Driven primarily by the non-recurrence of asset impairment charges, operating income of $67.6 million for the fourth quarter of fiscal 2012 more than doubled versus $32.8 million in the prior year. Operating income as a percentage of net sales of 8.1 percent in the fourth quarter of fiscal 2012 also more than doubled compared to 4.0 percent in fiscal 2011.