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Press Release: Spectrum Brands Holdings Reports -3-

· 02/05/2021 06:30
SPECTRUM BRANDS HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Month Periods Ended ------------------------------------------- (in millions, except per share amounts) January 3, 2021 December 29, 2019 -------------------------- -------------------- --------------------- Net Sales $ 1,145.0 $ 871.5 Cost of goods sold 722.5 592.5 Restructuring and related charges 0.2 9.9 ------------------- ----------------- Gross profit 422.3 269.1 Selling 166.8 146.1 General and administrative 91.9 80.4 Research and development 10.5 9.9 Restructuring and related charges 9.0 17.5 Transaction related charges 20.6 4.1 Loss on assets held for sale -- 32.8 Write-off from impairment of intangible assets -- 24.2 ------------------- ----------------- Total operating expenses 298.8 315.0 ------------------- ----------------- Operating income (loss) 123.5 (45.9) Interest expense 36.7 34.8 Other non-operating income, net (6.2) (43.7) ------------------- ----------------- Income (loss) from continuing operations before income taxes 93.0 (37.0) Income tax expense 19.8 0.7 ------------------- ----------------- Net income (loss) from continuing operations 73.2 (37.7) (Loss) income from discontinued operations, net of tax (0.3) 2.8 ------------------- ----------------- Net income (loss) 72.9 (34.9) Net income attributable to non-controlling interest 0.8 0.9 ------------------- ----------------- Net income (loss) attributable to controlling interest $ 72.1 $ (35.8) === ============== === ============ Amounts attributable to controlling interest Net income (loss) from continuing operations attributable to controlling interest $ 72.4 $ (38.6) Net (loss) income from discontinued operations attributable to controlling interest (0.3) 2.8 ------------------- ----------------- Net income (loss) attributable to controlling interest $ 72.1 $ (35.8) === ============== === ============ Earnings Per Share Basic earnings per share from continuing operations $ 1.69 $ (0.81) Basic earnings per share from discontinued operations (0.01) 0.06 ------------------- ----------------- Basic earnings per share $ 1.68 $ (0.75) === ============== === ============ Diluted earnings per share from continuing operations $ 1.68 $ (0.81) Diluted earnings per share from discontinued operations -- 0.06 ------------------- ----------------- Diluted earnings per share $ 1.68 $ (0.75) === ============== === ============ Weighted Average Shares Outstanding Basic 42.9 47.7 Diluted 43.0 47.7 SPECTRUM BRANDS HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) Three Month Periods Ended -------------------------------------------- (in millions) January 3, 2021 December 29, 2019 --------------------------- --------------------- --------------------- Cash flows from operating activities Net cash used by operating activities from continuing operations $ (94.1) $ (196.7) Net cash used by operating activities from discontinued operations (16.0) -- ----------------- ----------------- Net cash used by operating activities (110.1) (196.7) Cash flows from investing activities Purchases of property, plant and equipment (11.8) (18.7) Proceeds from disposal of property, plant and equipment 0.1 -- Business acquisitions, net of cash acquired (129.8) -- Proceeds from sale of equity investment 60.5 -- ----------------- ----------------- Net cash used by investing activities (81.0) (18.7) Cash flows from financing activities Payment of debt, including premium on extinguishment (54.0) (127.5) Proceeds from issuance of

changes in consumer spending preferences and demand for our products, particularly in light of the COVID-19 pandemic and economic stress; (13) our ability to develop and successfully introduce new products, protect our intellectual property and avoid infringing the intellectual property of third parties; (14) our ability to successfully identify, implement, achieve and sustain productivity improvements (including our Global Productivity Improvement Program), cost efficiencies (including at our manufacturing and distribution operations) and cost savings; (15) the seasonal nature of sales of certain of our products; (16) the effects of climate change and unusual weather activity, as well as further natural disasters and pandemics; (17) the cost and effect of unanticipated legal, tax or regulatory proceedings or new laws or regulations (including environmental, public health and consumer protection regulations); (18) our discretion to conduct, suspend or discontinue our share repurchase program (including our discretion to conduct purchases, if any, in a variety of manners including open-market purchases or privately negotiated transactions); (19) public perception regarding the safety of products that we manufacture and sell, including the potential for environmental liabilities, product liability claims, litigation and other claims related to products manufactured by us and third parties; (20) the impact of existing, pending or threatened litigation, government regulations or other requirements or operating standards applicable to our business; (21) the impact of cybersecurity breaches or our actual or perceived failure to protect company and personal data, including our failure to comply with new and increasingly complex global data privacy regulations; (22) changes in accounting policies applicable to our business; (23) our ability to utilize net operating loss carry-forwards to offset tax liabilities from future taxable income; (24) the impact of expenses resulting from the implementation of new business strategies, divestitures or current and proposed restructuring activities; (25) our ability to successfully implement further acquisitions or dispositions and the impact of any such transactions on our financial performance; (26) the unanticipated loss of key members of senior management and the transition of new members of our management teams to their new roles; (27) the impact of economic, social and political conditions or civil unrest in the U.S. and other countries; (28) the effects of political or economic conditions, terrorist attacks, acts of war, natural disasters, public health concerns or other unrest in international markets; (29) our ability to achieve our goals regarding environmental, social and governance practices; (30) our increased reliance on third party partners, suppliers, and distributors to achieve our business objectives; and (31) the other risk factors set forth in the securities filings of Spectrum Brands Holdings, Inc. and SB/RH Holdings, LLC, including the 2020 Annual Report and subsequent Quarterly Reports on Form 10-Q.

Some of the above-mentioned factors are described in further detail in the sections entitled "Risk Factors" in our annual and quarterly reports, as applicable. You should assume the information appearing in this document is accurate only as of the date hereof, or as otherwise specified, as our business, financial condition, results of operations and prospects may have changed since such date. Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the United States Securities and Exchange Commission, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, to reflect actual results or changes in factors or assumptions affecting such forward-looking statements.

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February 05, 2021 06:30 ET (11:30 GMT)