“We executed well on our global operating plans and strategic objectives in fiscal 2013,” Mr. Lumley said. “At the same time, we overcame significant adversity in the form of $23 million of negative foreign currency impacts on our adjusted EBITDA, challenging global economies, sluggish spending by still cautious and financially stretched consumers, tighter retailer inventory levels and reorder rates, unusual and disruptive weather patterns, and sustained and increased competitor discounting and promotions in certain of our businesses.
“The resilience of our businesses in today’s difficult global environment is a testament to our operating model, go-to-market strategies, brand strength and diversity, and strong retailer relationships around the world,” he said. “Our Spectrum Value Model is working effectively, and we continue to believe that value is winning with retailers and customers in the marketplace. Our continuous improvement cost savings in fiscal 2013 reached a record level, more than offsetting higher product costs and helping us to invest in a stream of exciting new products, some of which are launching now with more to follow in the months ahead.
“Our legacy business achieved a fourth consecutive year of adjusted EBITDA growth and margin improvement in fiscal 2013, while free cash flow increased to $254 million with expectations for at least $350 million of free cash flow in fiscal 2014,” he said. “We also met our objective to reduce term debt by $200 million.
“With our largely non-discretionary, non premium-priced replacement products,” Mr. Lumley said, “we will continue to pursue volume growth, new retailers, retail distribution gains, new products, cross-selling opportunities, geographic expansion, and select pricing actions while maintaining strict spending controls and achieving investment paybacks from our global cost improvement initiatives.“With momentum from our record fiscal 2013 performance and the continuing accretion from our HHI acquisition, we are focused on delivering yet another year of steady, measured financial improvement, including a strong increase in free cash flow, in fiscal 2014,” he said. “Our commitment remains to create greater shareholder value, with a focus on growing our adjusted EBITDA, reducing debt and deleveraging, and maximizing sustainable free cash flow.”
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