As a result of solid earnings and strong working capital management, the Company generated record annual free cash flow in fiscal 2013 of approximately $254 million, surpassing its goal of at least $240 million and its fiscal 2012 free cash flow of $208 million.
The Company made in excess of $200 million of payments on its term debt during fiscal 2013. This resulted in leverage (total debt to pro forma adjusted EBITDA) of approximately 4.8 times at the end of fiscal 2013. Excluding incremental debt incurred related to the refinancing of the 9.5% senior secured notes in the fourth quarter, leverage would have been approximately 4.5 times, consistent with previous guidance.
Fiscal 2014 Outlook
Spectrum Brands expects fiscal 2014 net sales, as reported and at current foreign exchange rates, to increase at or above the rate of GDP compared to fiscal 2013 net sales, including HHI in the prior year period on a pro forma basis. Fiscal 2014 free cash flow is expected to be at least $350 million and capital expenditures are projected to be approximately $70 million to $75 million. The Company expects to reduce term debt by at least $250 million in fiscal 2014.Conference Call/Webcast Scheduled for 9:00 AM Eastern Time Today Spectrum Brands will host an earnings conference call and webcast at 9:00 a.m. Eastern Time today, November 21. To access the live conference call, U.S. participants may call 877-556-5260 and international participants may call 973-532-4903. The conference ID number is 88028054. A live webcast and related presentation slides will be available by visiting the Event Calendar page in the Investor Relations section of Spectrum Brands’ website at www.spectrumbrands.com. A replay of the live webcast also will be accessible through the Event Calendar page in the Investor Relations section of the Company’s website. A telephone replay of the conference call will be available through Tuesday, December 5. To access this replay, participants may call 855-859-2056 and use the same conference ID number.