Adjusted EBITDA, a non-GAAP measure, of $178.8 million in the first quarter of fiscal 2014 increased 11.4 percent compared to adjusted EBITDA of $160.5 million in fiscal 2013, including HHI in the full prior year period on a pro forma basis. Adjusted EBITDA margin as a percentage of net sales increased to 16.2 percent compared to 15.1 percent in the year-ago quarter. Legacy Spectrum Brands adjusted EBITDA of $129.2 million in the first quarter of fiscal 2014 increased 1.7 percent versus the prior year, representing the 13 th consecutive quarter of year-over-year adjusted EBITDA growth, with the adjusted EBITDA margin improving to 15.7 percent compared to 15.2 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 2014 First Quarter Segment Level Data
Global Batteries & Appliances
The Global Batteries & Appliances segment reported fiscal 2014 first quarter net sales of $659.3 million versus $666.0 million in the year-ago quarter. Higher personal care net sales were more than offset by lower battery and small appliances net sales.Global battery sales in the first quarter of fiscal 2014 were $264.5 million compared to $271.0 million in the first quarter of fiscal 2013. The decline was due primarily to the one-time, incremental sales impact of approximately $10 million in predominantly flashlight sales in the North American business in last year’s first quarter from Hurricane Sandy. The North American battery business did, however, report higher overall alkaline battery revenues in the first quarter of fiscal 2014. In Europe, VARTA® battery growth was driven by a combination of new customer listings, distribution gains at certain existing customers, and promotions. Latin American battery revenues were essentially unchanged on a foreign currency neutral basis. Net sales for the global personal care product category of $178.1 million in the first quarter of fiscal 2014 increased 1.8 percent versus $175.0 million last year. Strong revenue growth in Europe and Latin America across all categories more than offset lower net sales in North America, which resulted primarily from category softness in men’s shaving and grooming.