“Of particular note is our 11 th consecutive quarter of year-over-year adjusted EBITDA growth for legacy Spectrum Brands, a record that dates to the first quarter of fiscal 2011,” Mr. Lumley said. “Focused spending, strong control of variable costs, increased savings from continuous improvement programs across all divisions globally, and growth in Europe helped the legacy business offset negative foreign currency impacts and difficult macro-economic conditions to deliver a 2.3 percent increase in adjusted EBITDA, and 3.9 percent on a constant currency basis. Legacy Spectrum Brands’ adjusted EBITDA margin in the third quarter also grew to a record quarterly level of 16.8 percent.
“It is important to note that this record quarterly profitability and margin performance was achieved even as we continue to make important, timely and major investments in Remington personal care consumables, global e-commerce, battery performance and production, and HHI new product development and marketing, all of which will help drive future growth.
“We expect to finish this year on a strong note and are projecting higher net sales and adjusted EBITDA for both the fourth quarter and for fiscal 2013 versus comparable prior year periods,” Mr. Lumley said. “Helping to drive the improved performance will be increased store traffic and optimism for value-branded sales in the back-to-school season time frame, new products launching across all divisions, key distribution gains taking hold, select new retailer business, continuing geographic expansion and an increasing level of cost reductions.
“We announced other very important news this morning,” Mr. Lumley said. “We plan to refinance our $950 million of 9.5 percent senior secured notes due 2018 and our Board of Directors has approved a new $200 million common stock repurchase program, effective for 24 months. We also announced $100 million of term debt reduction to date and reaffirmed our program to significantly reduce debt and delever our balance sheet.