Spectrum Brands Holdings, Inc. (NYSE: SPB), a global and diversified consumer products company with market-leading brands, today reported record fiscal 2013 first quarter results for the period ended December 30, 2012, and reconfirmed its outlook for a fourth consecutive year of record performance from the legacy business.
Spectrum Brands also reiterated that its transformational, accretive acquisition of the Hardware & Home Improvement Group (HHI) from Stanley Black & Decker (NYSE: SWK) in late December 2012 would provide significant, additional net sales, earnings per share, adjusted EBITDA and free cash flow to the Company’s fiscal 2013 full-year results and beyond.
First Quarter Fiscal 2013 Results Highlights:
- Record net sales of $870.3 million, including the HHI and FURminator® acquisitions, increased 2.5 percent in first quarter of fiscal 2013, which consisted of two fewer shopping days, versus $848.8 million a year ago; excluding negative foreign exchange impact, net sales grew 3.2 percent.
- Net loss of $13.4 million and diluted net loss per share of $0.26 driven by one-time acquisition and integration costs of $20.8 million and interest expense of $28.8 million, primarily from the impact of the HHI acquisition.
- Adjusted diluted earnings per share, a non-GAAP measure, of $0.72 in first quarter increased 4.3 percent compared to $0.69 in the first quarter of fiscal 2012.
- Adjusted EBITDA, a non-GAAP measure, of $130.7 million, including the HHI and FURminator® acquisitions, represented a fourth consecutive record first quarter, and an increase of 4.5 percent compared to the prior year period.
- Company reiterates expectations for fourth consecutive year of record financial results in fiscal 2013 for legacy business, with improvements weighted to second half of the year.
- Accretive, transformational acquisition of HHI from Stanley Black & Decker completed, and with attractive financing, in December 2012.
- HHI becomes fourth operating segment and brings significant, accelerated financial growth in fiscal 2013 and beyond as a major manufacturer and supplier of residential locksets, residential builders’ hardware and faucets with largely number-one market positions in North America.
- Certain assets of Tong Lung Metal Industry Co. Ltd. (Tong Lung), a Taiwanese manufacturer of residential and commercial locksets with facilities in Taiwan and the Philippines, on schedule to be acquired by March 31, 2013 in connection with the HHI purchase.
- Fiscal 2013 estimate of net cash provided from operating activities after purchases of property, plant and equipment (free cash flow) increased to approximately $240 million, net of HHI acquisition costs, from prior guidance of at least $200 million as a result of HHI acquisition.
- Company expects to use its strong free cash flow, enhanced by the HHI acquisition, to aggressively reduce debt by approximately $200 million and delever its balance sheet in the second half of fiscal 2013, consistent with the seasonality of its cash flows.
- First quarterly common stock dividend of $0.25 per share to be paid on March 12.
“We delivered record results in the first quarter, again putting us on track to achieve a fourth consecutive record year of financial performance from the legacy business with improvements weighted to the second half of the year,” said Dave Lumley, Chief Executive Officer of Spectrum Brands Holdings. “In the face of holiday and global retail environment softness, negative foreign currency impacts, cautious consumer spending heightened by fiscal cliff worries, and fewer shopping days, our businesses performed well and demonstrated again that our Spectrum Value Model is working effectively and resonating with retailers and consumers.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts