Net income, as adjusted, for the segment was $23.1 million for the fourth quarter of fiscal 2012 versus $6.3 million last year, which included a pre-tax, non-cash intangible asset impairment charge of $8.6 million. Fourth quarter adjusted EBITDA of $35.7 million, including adjusted EBITDA of $4.2 million from the FURminator® acquisition, increased 26.0 percent compared with $28.3 million a year ago. Foreign exchange did not have a material impact on the segment’s fourth quarter adjusted EBITDA.
Home and Garden Business
The Home and Garden segment recorded net sales of $86.1 million for the fourth quarter of fiscal 2012, an increase of 6.8 percent compared with $80.6 million last year. The higher revenues were attributable to an increase in household insect control sales, including $7.5 million of revenues from the Black Flag®/ TAT® brands acquisition.
The segment recorded fiscal 2012 fourth quarter net income, as adjusted, of $11.9 million compared to $12.9 million in the year-ago quarter. Fourth quarter adjusted EBITDA of $17.3 million, which included $1.9 million of adjusted EBITDA from the Black Flag®/TAT® brands acquisition, was unchanged from last year.Liquidity and Debt Reduction The Company completed fiscal 2012 on September 30, 2012 with a solid liquidity position, including a cash balance of approximately $158 million and zero cash drawn on its ABL Facility. At the end of fiscal 2012, the Company had approximately $1,665 million at par outstanding under its senior credit facilities, net of unamortized debt premium of approximately $4 million, consisting of a senior secured Term Loan of $370 million, $950 million of 9.5% senior secured notes, and $300 million of 6.75% senior unsecured notes. In addition, the Company had approximately $25 million of letters of credit outstanding. As a result of solid earnings and strong working capital management, the Company generated record annual free cash flow in fiscal 2012 of $208 million, surpassing its goal of at least $200 million and its fiscal 2011 free cash flow of $191 million.