The segment recorded fiscal 2013 fourth quarter net income, as adjusted, of $18.7 million versus $11.9 million in the prior year’s quarter. Record fourth quarter adjusted EBITDA of $21.8 million increased 26.0 percent versus $17.3 million a year ago due to increased gross profit from higher net sales coupled with lower operating costs as a result of expense management initiatives. The adjusted EBITDA margin as a percentage of net sales in the fourth quarter improved to 21.5 percent compared to 20.1 percent last year.
Strong fourth quarter results enabled the Home and Garden segment to achieve record annual net sales of $390.6 million and record annual adjusted EBITDA of $90.1 million in fiscal 2013, resulting in a record annual adjusted EBITDA margin of 23.1 percent.
Hardware & Home Improvement
In its third full quarter since its acquisition by Spectrum Brands on December 17, 2012, the Hardware & Home Improvement (HHI) segment recorded net sales of $293.8 million, an increase of 14.4 percent compared to $256.8 million on a pro forma basis as if combined with Spectrum Brands in the year-ago quarter. The revenue growth was primarily driven by HHI’s U.S. residential security and plumbing businesses. The segment recorded net income, as adjusted, of $38.3 million in the fourth quarter of fiscal 2013. Adjusted EBITDA in the fourth quarter of fiscal 2013 was $54.4 million, which was tempered by planned and additional spending on new product development and marketing, compared to $53.0 million last year.Liquidity and Debt Reduction The Company completed fiscal 2013 on September 30, 2013 with a solid liquidity position, including a cash balance of approximately $207 million and zero cash drawn on its ABL facility. As of the end of fiscal 2013, the Company had approximately $3,231 million of debt outstanding at par, consisting of a series of secured Term Loans in the aggregate of $1,745 million, $520 million of 6.375% senior unsecured notes, $570 million of 6.625% senior unsecured notes, $300 million of 6.75% senior unsecured notes and approximately $96 million of capital leases and other obligations. In addition, there was approximately $37 million of letters of credit outstanding.
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