Adjusted EBITDA, a non-GAAP measure, of $188.5 million in the third quarter of fiscal 2013 increased 2.0 percent compared to $185.0 million a year ago, including the acquired HHI business in the prior year period on a pro forma basis. Adjusted EBITDA as a percentage of net sales was 17.3 percent compared to 17.2 percent in last year’s third quarter. Legacy Spectrum Brands’ adjusted EBITDA of $135.5 million in the third quarter of 2013 represented the 11 th consecutive quarter of year-over-year adjusted EBITDA growth, starting with the first quarter of fiscal 2011. Excluding the negative impact of $2.1 million of foreign exchange, legacy Spectrum Brands adjusted EBITDA in the third quarter of 2013 increased 3.9 percent versus $132.5 million in the prior year. Adjusted EBITDA as a percentage of net sales for legacy Spectrum Brands in the third quarter improved to a record quarterly level of 16.8 percent compared to 16.1 percent last year. 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.
Fiscal 2013 Nine Months Consolidated Financial Results
Consolidated net sales of $2.95 billion for the nine months of fiscal 2013 increased 21.8 percent compared with $2.42 billion for the same period in fiscal 2012. The increase was the result of the HHI acquisition. Including HHI as if part of the Company in both years’ nine months, pro forma net sales of $3.14 billion were essentially unchanged compared with last year.
The Company reported a GAAP net loss of $18.5 million, or $0.36 diluted loss per share, for the nine months of fiscal 2013 on average shares and common stock equivalents outstanding of 52.0 million. In the nine months of fiscal 2012, the Company reported net income of $43.1 million, or $0.83 diluted income per share, on average shares and common stock equivalents outstanding of 52.1 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 of $2.12, a non-GAAP measure, for the nine months of fiscal 2013 compared with $2.44 in last year’s nine months. The decrease was primarily due to an increase in non-cash stock compensation expense driven by employee stock-based award programs.